Summary: If you want to start a rental income, you should consider renting a spare room. It will be a great start to a good income.
Is your second home lying vacant just because you can’t find a tenant who can rent out the 3 bedroom apartment at a high price? If yes then you should consider renting individual rooms to rent.
Let’s understand the concept of renting individual rooms with examples
You have a large 3 bedroom apartment in a decent area where you can get a rent of £1500 per month plus. But it is possible only when you have a family ready to rent out your apartment at this price. And you will make a profit only when your home remains occupied all the time. If the occupancy rate of your home is 50% or less then you aren’t making any profit. On the contrary, you will spend more on the upkeep and maintenance of your property.
Now look at the second scenario
You decide to give your rooms to rent at £600 per room. Since you have a 3 bedroom apartment, you can rent out three rooms at the cost of £1800 per month. If you have all three rooms occupied, you will earn more than what you were earning before renting out individual rooms. It will increase your rental income by more than 20%.
Renting individual rooms is a great idea to increase the occupancy rate and rental income in the long run. In this way, you will continue to get rent. Since it is easier to rent out individual rooms than a home, you can easily find renters for your second home.
If you don’t have a second home but you want to start earning rent, you can rent out a spare room in your home and get rent every month. And you will be surprised to know that the size of the room is of little importance as tenants are available for rooms of all sizes. But the space should have all basic amenities. In the UK you can also rent a room in your own home and earn rent of up to £7500 per year without paying tax under the governments Rent a Room Scheme.
See who’s looking for rental accommodation
- Healthcare Professionals
Doctors, nurses, and other medical workers keep traveling for work and they rent rooms wherever they go. You can also rent out a small portion of your home to a visiting doctor or nurse for a short time and earn some quick income.
Renting is the new way of owning homes and it is advantageous for everyone, especially working people who want to save money for the future. The rent of your spare room will be much less than that of a studio apartment. And a single person can easily get adjusted in a small area. A working person will get decent accommodation and you will get some rental income.
Students need small spaces where they can keep their belongings and take rest as they spend most of their time attending classes or libraries. Also, online education has increased the demand for rental rooms. The advantage of a room is that it provides privacy at a much more affordable price.
- Lonely Travelers
They could be business travelers or vacationers. They need accommodation and they prefer staying in homes instead of hotels. Your spare room is suitable for both business travelers and vacationers. And you will continue getting tenants for your room.