A recent guide from comparethemarket.com has revealed how, in the era of the side hustle, you can turn your hobby or interest into a money-making scheme. In fact, according to Henley Business School, 25% of adults have a side hustle, and this figure is only expected to grow.
But if having a second job sounds a bit too much like hard work, why not make your home your side hustle and see how much money you can earn by putting your bricks and mortar to work?
The price comparison site takes a closer look at some of the most popular ways of making money by using your own home.
1. List your home on Airbnb
What could you earn? A typical UK host earns £3,100 per year, just by hosting guests for on average four nights a month. Two guests in Manchester could earn you around £686 per month, whereas the same arrangement in London could command around £1,314.
See how much your home could earn using Airbnb’s quick calculator.
Any Risks? One thing that puts some people off using Airbnb is the thought of strangers staying in their personal space, and there have been horror stories of guests throwing raucous parties or damaging properties. Compare the Market’s insurance expert Chris King said “Normally, from a home insurance perspective, you’re insured for yourself as the policyholder, plus family members who live with you. If you have strangers coming and going, this increases your risk profile and some insurance providers won’t touch this kind of risk.”
2. Taking in lodgers
What could you earn? According to Onthemarket.com, the average monthly cost of renting a spare room is £5,593 per year, rising to £7,667 in London.
Any Risks? Before taking in a lodger you should inform your landlord or mortgage provider to check they give permission. You also need to inform your home insurance provider. There is potentially a difference in how insurance providers see the risk of a lodger compared to that of an Airbnb guest, says Chris King. Because the lodger will be more permanent, insurance providers may consider that “you’ll probably do a bit of due diligence about who it is that you are letting live with you, so they may consider it less of a risk”.
3. Renting your home to film or TV companies
What could you earn? It really depends on the TV show or film’s budget and how long the property is needed for, but it could be as much as £1,000-£2,000 a day. For photoshoots, it might be £350 a day.
Any Risks? As you’d expect, with so many people and equipment, there is a small risk of damage to the property, so it’s important to have the right insurance in place.
4. Renting your driveway
What could you earn? According to research by YourParkingSpace.co.uk, driveway owners earned more than £15m from their parking spots in 2018, with drives in London, York, Bristol and Reading being among the biggest earners.
Any Risks? If you’re looking into renting out your driveway, you may come across conflicting information about whether you need planning permission, as technically it’s a ‘change of use’ to your property. However, the Government has stated that in England, letting out one space is fine. It’s still a grey area elsewhere, so worth checking with your local council.
5.Using your home as a gallery
What could you earn? You can charge a fee for use of your space, or take a commission on sales.
Any Risks? If you’re selling art from your home then you are effectively turning it into a retail space, which could have implications for your mortgage, so you’ll need to discuss it with your lender beforehand. You’ll also need to consider insurance carefully.
6.Generating your own energy
What could you earn? The biggest financial benefit of generating your own energy is that your bills should fall.
Check what you could be entitled to using the RHI Calculator
Any Risks? Generating your own energy is relatively risk-free. However, with Government incentives ending, you need to do your sums to work out if the savings on your bills are worth the initial outlay.
7.Growing your own food
What could you earn? A survey for the Edible Garden Show found that grow-your-own gardeners save an average of £268 a year, although research by the National Allotment Society suggests that the savings could be as high as £1,300 a year for an experienced gardener with a 250 square metre plot.
Any Risks? Some people suggest that the cost of maintaining a veg patch and buying good quality seeds, etc, means that savings are actually quite small, plus there’s always the risk that you’ll have a bad harvest and still find yourself hitting the supermarket fruit and veg aisle on a regular basis.
8.Using your home as a workplace
What could you earn? Working from a home office is all about making savings. Research by Nationwide puts the cost of working in an office at around £1,000 a year when extras like birthday whip-rounds, sponsorship forms and coffee runs are taken into account.
Any Risks? Many home insurance providers will ask a question about home working when you apply for insurance. And if they don’t, it’s important to check and see if you need to let them know.
Carla Dobson-Elliott’s experience of working from home: “Since working four days a week from home, I’ve seen huge improvements to both my bank account and quality of life. Not only am I saving up to £50 a week in train fares, as soon as I log off I’m at home and able to spend time with my kids – no more spending hours on a packed train.
“One thing I did realise early on though is that you really need a dedicated workspace, so you can step away from it at the end of the working day. It’s worth investing in a good desk and chair and getting yourself set up properly.”
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Daniel Peacock