The increased cost of living is causing many to consider how best to save or earn money. With the rise in enquiries, online estate agent sold.co.uk looked at how easy it is to turn your home into a hotel of sorts.
Renting a room to holidaymakers
You may not have a second house but you may well have a spare room! Giving people the chance to rent out a room is a win-win. For you, there is the extra income, and for the guest, a cheaper stay than a hotel. As long as you are not renting the property yourself, you could be golden.
To generate interest, location is important. If you live in an area that opens up great options for tourists, all you need to do is make your price point right and you are halfway there! Just remember, you need to keep on top of the housekeeping more than usual when hosting. The first impression is the lasting one and will help hugely with positive reviews.
Renting your home to holidaymakers
Maybe you own more than one home but currently have one empty. Could you benefit from letting it out for short term visits? As with letting out rooms, if your house is rented, you will be unlikely to be in a position to let travellers stop over. However, if it is yours, check your mortgage terms.
There are some mortgage lenders that say no, there are others that review on a case-by-case basis. Those that do say yes will often state it can only be for a set number of weeks per year. You may also have a fee to pay!
Will it affect my house insurance?
You may have been told that you can indeed rent out your home, or room. Before drawing up ads to go on Airbnb and adding up the possible income, check your insurance policy. Letting strangers into your house could invalidate your insurance especially if the provider is not aware of your intentions.
Many companies will not allow you to rent out a room or your house. Having unknown people in your home makes your house more susceptible to damage or theft. You can seek out different policies or may have to find a new provider altogether.
How much can I earn?
You could always take advantage of the government rent-a-room scheme. This means you can earn £7500 letting out a room or property before having to pay any tax. If you earn less, you don't need to do a thing. If you earn more, just complete a tax return.
Alternatively, you can leave the scheme alone and just complete a tax return anyway and record all income and expenditure. You can earn more this way than through the rent-a-room scheme but because the deductible expenses are varied, it is worth checking gov.uk/renting-out-a-property/paying-tax.
To get the best earnings, look at your location. compare prices to hotels. If your area has seasonal peaks, factor them in. Don't go too low, you'll lose some great revenue. Don't go too high, you'll price yourself out!
What about health and safety rules?
Fire safety means a risk assesment is needed as well as marked fire escape routes. Your local fire service can help you with the risk assesment.
In addition check your Energy Performance Certificate (EPC) is in date and that the heating is working. Nobody likes a cold room or cold bath!