In the midst of the recession, with massive job losses and pay cuts, many people are searching for new and inventive ways to earn money.
As the new tax year looms, James Davis, founder of online property rental site, www.upad.co.uk, reminds homeowners that they are sitting on a potential goldmine. Renting out a spare room can provide a significant income with the huge additional benefit of £350 per month (£4,250 per year) being tax free.
Davis believes that taking on a flatmate could be the answer for many UK homeowners’ money worries, he comments:
“At a time when many will be struggling to make ends meet, then isn’t this a sensible option? I am sure that most people would rather share an evening meal with a new tenant, than face the prospect of having to take on a second job to pay the bills. And it is also a more pleasant and cost-effective option, bearing in mind additional income from working extra hours is taxed.
“With average weekly spare room rents standing at £100 in London, and £70 in Leeds, homeowners could use the money towards paying the mortgage, saving for essential home improvements, or boosting their monthly income. They may even want to use the additional funds to save for their next home move. And, for first-time buyers, currently unable to get onto the property ladder, this could be the ideal option.”
Davis also offers advice for potential landlords keen to take the plunge and rent out a room in their home. This ranges from setting ground rules but remembering that the tenant is also paying to live at the property, to ensuring legal obligations are met. For more information and useful tips, a free advice sheet is available to download from www.upad.co.uk.
upad is ‘reinventing renting’; a new free online service that helps renters to find their ideal place to live. Using upad’s state-of-the-art technology, renters can, for the first time, search properties by key criteria such as availability of parking, outside space, broadband connectivity, a security alarm or even laundry facilities.
The company has the largest choice of homes to rent in the capital (82,000), and will be rolled out across other major UK cities during the second quarter of 2009.