A loft conversion in London by Simply Loft could put money in your pocket in more ways than one.
In addition to improving the value of your property, a loft conversion could provide you with an extra bedroom which you could rent out for some extra income every month.
All you need to make a little extra money is a little extra space. That loft conversion could pay for itself long before you decide to sell the house.
When we surveyed a cross-section of London’s home owning community, we discovered that 16% of people surveyed would consider renting out their spare room.
Did you know that those who do let a room could earn on average £639 per month? That’s more than £7,000 per year, but don’t swing open your doors just yet. Before you let your room there are some things you need to know.
How do I let my loft conversion?
1. Have a Spare Room
First things first, it’s pretty obvious (but important nonetheless) that if you’re going to rent out your loft it’s going to need a bedroom… even if it only has a pull out bed. The most popular loft conversions in London that we have completed feature a bedroom and en suite bathroom. It doesn’t matter if space is limited. You’d be amazed at the kind of living space we could provide thanks to integral storage options and other neat design touches.
2. Tell Your Insurer
One of the most important things to remember is that you’ll need to inform your insurance company that you are going to let. If you don’t tell your insurer and then need to make a claim it could be rejected, leaving you out of pocket. Typical contents insurance won’t cover the belongings of your new tenant. You’ll need to explain this to the lucky lodger you welcome into your home.
3. Find the Right Person
Inviting a stranger into your home will always carry an element of risk. That’s why the interview process is so crucial and you shouldn’t be afraid to ask plenty of questions. Before making a decision about a possible tenant get all of the info you need; including employment details and references from at least 2 previous landlords. Tenant screening will also allow you to get a credit report, affordability check and income verification; although you’ll have to pay for it.
4. Don’t Forget About Tax
While the Government’s Rent a Room scheme allows homeowners to make up to £4,250 per year in rent, income tax free, in London you’re likely to charge considerably more than roughly £350 per month. This means, you’ll have to register with the HMRC. The good news is that this is easy to do. Once registered you will need to keep a record of all rent incomings and fill out a self assessment tax return every year. Again, this is easy to do.
5. Think About Short Term Rentals
If you’re still not entirely sold on the idea of a lodger, but you’re looking to earn some cash from the space available in your home, you could consider short term rentals. There are loads of sites online which will promote your property to tourists and short stay visitors and you could make hundreds every week with only a small fraction going to the promoter.
With a high quality loft conversion adding an extra bedroom to your home you’re likely to enjoy an increased valuation on the property. In the meantime, there are other ways to turn a home improvement into a savvy investment. Letting a loft conversion is a perfect example.