Welcome to Money Tips Daily.
We have looked at various ways of saving money, so today I want to give you a few tips on how to earn some extra cash!
We have looked at various ways of saving money, so today I want to give you a few tips on how to earn some extra cash!
There
are hundreds of ways of generating additional income in your spare time from
starting a small business from home, digital marketing and sales or MLM. I
actually run a Facebook page called home based business ideas.
If
you’re not inclined to start a business just yet and are struggling to make
ends meet, you might want to consider these simple money making tips:
Rent
a Room Scheme
The
UK government allows you to earn up to £7500 tax free per year from renting out
accommodation in your home.
The
Rent a Room Scheme lets you earn up to a threshold of £7,500 per year tax-free
from letting out furnished accommodation in your home. You don't have to stop at £7500 by the way, you just have to pay a little extra tax. Always consult your legal and tax advisers.
How do you find tenants?
Tenants are easy to find
in most areas (for instance, where there is employment or transport links) using websites like Airbnb and spareroom.co.uk.
Airbnb
clients tend to be looking for short-term accommodation, although in my
experience they can turn into long-term guests. The good thing about Airbnb is
that they take care of collecting payments and has insurance in case things go
wrong. You will generally be expected to provide bedding and towels like a
guest house, but the higher rent should compensate you for this. The
disadvantage is that guests will come and go which means more work.
Other
sites like spare room and Monday to Friday provide you with a platform to
advertise your room. Once the potential tenant makes contact you will have to
deal with references and tenancy agreements. Advantages that you should be able
to find a longer time tenant and will not have to provide additional services
like bedding and cleaning. These sites generally charge you a flat fee to
advertise your room and all the rent is yours, but there is no guarantee you’ll
find a tenant. Airbnb makes no charge to list your room on their site, which has
millions of visitors, but will take a percentage from the rent.
You
can of course use traditional methods like putting a card in the shop window,
but this carries more risk and I've found you get better quality tenants through online advertising.
Whichever
method you use to find lodgers there are plenty of people out there looking for
a room, because renting an apartment is outside of their budget or they just
need something temporary.
A
few words of caution. Always take up references and use a legal assured shorthold
tenancy agreement (AST) unless you’re taking Airbnb guests. If in doubt,
consult your lawyer and take legal advice.
You can find out more from
organisations such as the National Landlords Association or on consumer website
such as citizens advice.
The 'gut' feeling most landlords ignore
I would also follow your own instincts and gut feeling
about a person before letting them take up residence in your home. If there’s
something you don’t feel is quite right about a potential lodger, go with your
gut feeling or check them out further. For me, this is more important than references, but don't go completely freehand gung ho and skip the referencing process.
There are dozens of ideas around the ‘sharing’
economy including: car sharing on your journey to work and renting out your
driveway for parking while you’re out at work.
Tomorrow,
I’ll give you another cash generating tip which could turn into a profitable
online business allowing you to work from home and quit the rat race.
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