Five ways to make money from your home
From jewellery party venues to makeshift film sets, houses can become moneyspinners in surpisingly simple ways
It's easy to think of your home as a constant drain on your bank account, but it doesn't have to be this way. If you are prepared to put up with a bit of disruption, it's easy to turn your home into a moneyspinner, and supplement your income by up to £5,000 a year.
For some options, you will need to declare the money to the tax man at the end of the year, so factor that into your calculations as to whether it's worthwhile.
Rent out a parking space
This can be a huge moneyspinner if you live somewhere where parking is at a premium, and it is almost hassle-free. There are now a number of websites that put people with spare drives in touch with people who need to park in an area.
Perhaps someone who runs a shop near your home needs a place to park during the day would be delighted to pay to park on your driveway while you are at work. If you live near an airport, they may be willing to pay you to park while they are away (to be competitive though, you may need to offer to drop off your guests at the terminal).
Expect to pay about 15% commission, plus VAT for bookings made via the websites. There are plenty of sites to choose from includingParkatmyhouse.com and Parklet.co.uk, which is good for long-term lets.Yourparkingspace.co.uk is one of the cheapest parking sites as it costs just £15 a year to advertise your spot.
Make your home a film star
It might sound unlikely, but have you considered renting out your home as a film set? Film and TV programme makers are always on the lookout for interesting homes (and, frankly, some quite dull ones too) in which to film the odd scene, or even more.
The residents of Bristol cashed in on this for many years. The long-running BBC drama Casualty was filmed in and around the city for more than 20 years. Several private homes were used, netting their owners typical payments of £900 a day or more, in some cases. Film companies, equally, are always keen to discover places to stage sets. Be warned though, this can be hugely disruptive.
You are more likely to be taken on if you have nearby parking to house the film trucks and other paraphernalia.
Note: this is not for the faint of heart or very houseproud, as you will have huge numbers trampling through your home. A contract should be in place to cover damage and insurance. If you use an agency – such asLavishlocations.com, remember to factor in its cut.
Solar panels
Although no longer quite as generous as it once was, the government's feed-in-tariff scheme, which pays homeowners for every unit of electricity generated by solar panels mounted on their roof, is still a hassle-free way to make some spare money. It also currently offers better returns than you'll get on savings in the building society. On top of that, you should also see your energy bills fall.
Setting up a biggish (4kw) system will now set you back £6,500, but it should generate an income or savings of £350-£400 a year, for 25 years . That includes the amount you save in using free electricity while the sun's out – which only looks like it will get more valuable as electricity prices rise.
The returns are better in the southern half of the UK and ideally you need a south-ish facing roof, but you can still make a decent return from other roofs too. This is a great one for higher rate 40% taxpayers, as the income is not taxed.
For more information go to Energysavingtrust.org.uk and to find a reliable installer, go to yougen.co.uk.
Rent a spare room
The government's rent-a-room scheme allows householders to receive a rent of up to £4,250 a year per household completely free of tax if you let one or more furnished rooms.
To qualify, you must live in the property with the tenant for at least part of the time, and it must be your "principal place of residence". The £4,250 can be on a room-only basis, or it can include payments for meals, cleaning and laundry. A lodger can occupy a single room or an entire floor of your home.
The tax-free scheme does not apply if your home is converted into separate flats that you rent out, nor if you let unfurnished rooms.
If you earn more than £4,250 from renting out a room – a figure that has remained unchanged since 1997 – you need to work out whether you would be better off declaring your rental income on your self-assessment tax return and paying tax in the normal way. The scheme is not just for homeowners. People renting a property can also sublet and get the same benefits.
Hold money-making 'parties'
Who can forget the Tuppaware parties of the 70s? The householder would invite their friends round to show off the latest sandwich boxes, while taking a share of the sales. Tupperware may have lost its allure, but jewellery parties are now all the rage.
Stella & Dot is one of the best-known. It says anyone can host one of its "trunk shows", where its hostesses earn 25%-30% of their personal sales. You should be able to pocket about £225 per event.
