The dream of making extra money without leaving the comfort of your home might sound too good to be true, but it’s becoming a reality for many Brits. The trend is called the ‘sharing economy’, and you might have just the ticket to join in. Lovemoney has some suggestions how you could profit from joining in.
Understanding the Sharing Economy
The sharing economy isn’t a fancy, complicated financial concept. It simply means letting out assets you already own to other people or businesses. This could be as straightforward as allowing someone to park in your driveway or renting out that spare room that only gets used twice a year. By tapping into this economy, you could bring in an extra sum every month without making significant life changes.
Profit from Your Parking Space
Potential Earnings: Up to £201 per month or £2,412 a year
The Demand for Driveways
Parking spaces are becoming like gold dust, especially in bustling parts of the country. If you’re situated near a busy town, city, or commercial hub, you could be sitting on a small fortune. With the ParkLet Price Guide Tool, we’ve discovered that a driveway around Cheshunt, Hertfordshire, could fetch between £164 and £201 monthly. That’s an impressive £1,968 to £2,412 annually – for simply letting someone park!
However, these rates can differ. For instance, a driveway in Liverpool Docklands might yield between £110 and £135 a month (£1,320 to £1,620 annually). But if you’re located on a popular route, it’s definitely worth a thought.
Where to Offer Your Space
- ParkLet
- JustPark
- ParkonMyDrive
- YourParkingSpace
Note on Fees: For a platform like ParkLet, expect a 20% commission + VAT, and a one-time £25 + VAT admin fee deducted from your monthly earnings.
The Potential of Spare Rooms
Potential Earnings: Up to £7,500 annually (tax-free!)
Airbnb – A Game-Changer
The rise of Airbnb has made letting out spaces easier than ever. If your home is near the city centre, tourist spots, or significant events, you could earn a tidy sum. For context, renting a room in Manchester Piccadilly averages £52 a night, while in Crawley it’s about £41.
Alternatively, if you’re okay with longer-term company, consider taking in a lodger. Platforms like Spareroom.com or Gumtree can help. Plus, with the Government’s Rent a Room scheme, you can earn up to £7,500 annually before it’s taxable.
Note on Fees: Airbnb charges a host fee around 3%, which includes up to £790,000 worth of insurance. Spareroom.com or Gumtree listings can be free but often fare better with a paid placement.
Making the Most of Extra Spaces
Potential Earnings: Up to £1,800 a year for a garage or loft
Storage – A Silent Moneymaker
Your unused loft, cellar, or garage could be a storage goldmine. With platforms like Storemates, you could fetch over £150 monthly for a garage or £75+ for a loft. Stashbee is another alternative to consider.
Note on Fees: Storemates lets the renter cover a 17% fee. Listing on Stashbee is free, but they’ll take a 5% commission from your earnings.
Offering a Slice of Nature
Potential Earnings: Starting at £15 per night
If you’ve got a garden but don’t fancy having guests inside, why not offer it as a camping spot? Especially if you’re near popular locations. Platforms like Campspace let you set your price, often starting at £15 a night. If we take Airbnb’s average of 33 nights annually, that’s potentially £500 extra a year.
Note on Fees: Campspace doesn’t charge hosts any fees.
The Financial Fine Print
Before you dive in, there are some crucial financial aspects to keep in mind.
Tax Benefits for Micro-Entrepreneurs
The UK government supports your side hustle. Since 2015, those letting out furnished accommodation can earn up to £7,500 tax-free through the Rent a Room scheme. Furthermore, from April 2017, homeowners don’t need to declare the first £1,000 from property-related income.
Insurance Implications
If you’re going the sharing route, insurance is a must. Adjusting your home insurance policy is vital, and public liability insurance might be necessary to ensure you’re covered if a renter faces an injury on your property.
Conclusion
Your home, often seen as a place of comfort and memories, can now also be a source of income. From parking spots to spare rooms, there’s potential in every corner. As the sharing economy continues to boom, why not jump on board?