After a number of difficult years for many financially – a result of austerity measures, a rising cost of living, and the unexpected costs of locking down for the COVID-19 pandemic – people are exploring other ways they can create income for themselves, whether regular or a swift injection. The home is the most valuable asset you own, and there are many ways you can leverage that asset for your benefit, both in the short term and the long term. Here, we will explore those ways, and pick out the best possible ways you can make your property earn for you.
Rent Out your Space
If you have a spare bedroom, consider casting out for a lodger to fill that space. Letting out a room enables you to generate a not-inconsiderable passive income, for very little upfront cost. Likewise, if you have a garage space you aren’t using for much more than storage yourself, have a clear-out and advertise it as a storage space to let. Letting garage space has the added benefit of barely impacting your home life, as no access to your home and amenities would be required.
Let Your Home While Away
For extended trips away, whether with a family or for business, you can let your home as a fully-furnished short term rental, and let it earn for you while you’re away. That said, navigating legal responsibilities as a landlord can be time-consuming and tedious – you might find it easier advertising your home as a holiday let on peer-to-peer holiday bookings sites like AirBnB or Staze.
If you are aged 55 or older, you could benefit from getting an equity release from your home – whereby your home’s equity (the market value, minus any remaining mortgage payments) is released to you in the form of an up-front or staggered loan. This kind of equity release, otherwise known as a lifetime mortgage, frees up money from your biggest asset and does not require you to pay it back until the home is sold.
Move into Rented Accommodation
You might consider renting a place yourself, and moving out to it in order to rent your home out to others long term. This is an especially lucrative idea if you are living in a high-demand central area, and moving out to a smaller home in a quieter area. This way, the rent you could charge for your home would be much higher than the rent you’d be paying for your new home, resulting in a passive net profit month on month.
Maybe your family has all-but flown the coop, and you have more space than you know what to do with. And maybe the responsibilities of renting a property do not appeal to you. Selling your home and downsizing to a smaller property in a cheaper area is a fast way to free up money, generating a sizeable lump sum for you to save or invest.