Home Income Tips: Simple Ways to Make Money From Your Property

Got a house and wondering how to squeeze extra cash out of it? You don’t need a finance degree or fancy tricks – just a few clear steps that work for most owners. Below you’ll find the hottest ideas, from renting a spare room to using shared‑ownership schemes, all explained in plain English.

Rent a Room or Whole House: Turn Space Into Cash

First up, the classic room‑rental. If you have an extra bedroom, list it on a trusted platform, set a realistic price, and let the tenant handle most of the bills. Even a modest £400 a month can cover part of your mortgage and free up money for other goals. Got an entire property you’re not living in? Short‑term lets (like Airbnb) can net higher nightly rates, but remember to check local regulations and insurance requirements.

Key tip: Keep the space tidy, provide basic amenities, and be clear about house rules. Good communication means fewer headaches and better reviews, which translate into higher earnings.

Shared Ownership and Co‑Ownership: Earn While You Own

Shared ownership isn’t just for first‑time buyers; it can also be a source of income. In a co‑ownership set‑up, you own a share of the property and rent the rest. The rent you receive from the other owners can offset your mortgage, and if the property value rises, your equity grows too.

Watch the numbers: A typical 25% share in a £200,000 home means you pay a mortgage on £50,000 and rent the remaining 75%. If the rent is £700 a month, that can cover a large chunk of your loan. When the market improves, you can sell your share for a profit or buy more equity.

Another angle is the “2% rule” for investment properties – aim for a monthly rent that’s at least 2% of the purchase price. For a £150,000 home, that’s £3,000 a month in rent, which is rarely realistic for a single house but doable if you split the unit into multiple rooms or add a loft conversion.

Don’t forget tax. Rental income is taxable, but you can deduct mortgage interest, repairs, and certain fees. Keep good records and consider speaking to an accountant to maximise deductions.

Finally, think about pet rent. Many landlords add a small fee for furry friends. If you allow pets, you can charge a modest extra (£10‑£20 a month) – a painless way to boost cash without major changes.

Putting these ideas together can turn a static property into a steady income stream. Start small, track results, and adjust as you go. Your home can work for you, not the other way around.