Owning a buy-to-let isn’t the only way to make money out of property, by any means. Here are five ways you can generate additional income and turn a profit, even if you don’t have a second property:
1. Increase the value of your home
If you have some capital to invest, you may be able to extend or improve your own home in such a way that it adds significantly more in value than you spend.
Extending the property to add extra rooms – particularly bedrooms – can be the most reliable way to get a good return on your money. If your kitchen or bathrooms are very dated, upgrading those could be financially worthwhile.
Importantly, before finalising any plans, speak to a local estate agent to get a market appraisal for the property as it currently stands, and their expert opinion on how much it could be worth after the work as sometimes, just leaving it as it is may not deter buyers if your property is in high demand.
2. Rent out a room
Under the government’s Rent a Room Scheme, if you let a furnished room in your own home, you can earn up to £7,500 in rental income each year tax free (up to £3,750 if you share the income with someone else). The exemption is automatic, so if you earn up to that amount, you don’t need to complete a tax return.
You could advertise locally yourself or list the room on websites such as Airbnb and SpareRoom. Make sure you understand your legal obligations and your tenant/lodger’s rights and always have a written rental contract.
Before letting any part of your home, check that there aren’t any lease restrictions on sub-letting, and speak to your mortgage lender and home insurance company to make sure you’re not breaching any of the terms of your agreement.
3. Offer the whole property as a holiday let while you’re away
If you’re away over the Christmas/New Year period or are going on holiday for one or two weeks any other time of the year, why not cover some of the cost of your vacation by renting out your entire house while you’re not there?
Make sure you take out appropriate insurance and have a formal holiday let agreement in place. Letting through sites which allow you do this can help make sure you have access to all the information, templates and support you need for this.
4. Rent out your drive or garage
Renting out space on a drive has become increasingly popular, especially in and around London, where parking is expensive, or if you live close to an airport or railway station.
Around Battersea Park, the average driveway parking rate is £18 a day, and some people are earning upwards of £200 a month. If your home is close to an events venue, you may be able to earn significantly more at certain times of the year – for instance, for the 2024 Wimbledon tennis championships, parking in one driveway in SW19 from 11am to 7pm is being offered for £62.50.
5. Work in the industry
If you love property and you’re a great communicator, you could work in lettings or sales yourself, even if you’re just looking for weekend work. While there is likely to be some in-house training required, you don’t need any formal qualifications to be an agent in England, so it’s worth enquiring around local agents to see whether there are any opportunities.
You can find our latest job opportunities here.
If you’d like any advice about letting any part of your property, our experts are always here to help. Just call or visit your local branch and speak to one of the team.
