We all love making money. We need money to pay the bills and to give ourselves a comfortable lifestyle. Given the opportunity to make some extra cash, naturally we would take it. Of course, we all know that money alone cannot buy us happiness, but a steady flow of income certainly helps to make life easier.
Flat sharing is a great way to make extra money from a room within your property
“But how can I earn extra money?” I hear you ask. Well, with a flat-share, that’s how! Flat sharing is a great way to make extra money for anyone with a spare room in their property, and where better to do so than in the capital of England – London. You can turn an empty room into a goldmine with our simple and helpful system. You can increase your rental income, whether you are a landlord or a simple home-owner. We can help you learn how to increase your income simply by reading our incredibly useful page.
How you can earn extra money from a flat-share/ How flat-share prices can vary
If you are flat-sharing in London, then you’ll need to know how much a flat-share is worth compared to full properties. Well, on average, the rent cost per room in London is £747. If for example, you have 3 bedrooms you can let out, then there is an opportunity for a higher rental income. Find out how much rent you can charge in 60 seconds with this rent calculator.
The popularity of the search term “room to rent in London” has doubled in the last 10 years
As shown in the chart above, the popularity of the search term ‘room to rent in London’ has doubled over the last 10 years.
With London house prices predicted to increase even further in the near future, even more people are likely to be searching for rooms to rent. This shows that it shouldn’t be too difficult to find your potential new tenant! The table below shows the extra potential earnings that you could make from turning your rental property into a flat-share.
The table below shows the extra potential earnings that you could make from turning your rental property into a flat-share.
|Borough||Avg. Room Rent||Avg. Three Bed Rent||Extra Earnings|
Room Averages from RoomBuddies and property averages from GOV.UK
The table above shows the rental values for the 7 most lucrative boroughs in London. If you own – or are looking to own – a property in London, then look to these boroughs for the best potential profit per month, with offers of just less than £6000 a year! That money could be put towards anything you need – whether it’s a holiday or a new car; that amount of money can go a long way. We have highlighted just a few boroughs here but there are plenty of others that could also increase your rental income.
|% of rooms advertised at||May 2016||May 2015||May 2014||May 2011|
|£1,000+ per month||6%||6%||4%||3%|
|£750+ per month||42%||39%||28%||21%|
|>£750 per month||58%||61%||72%||79%|
|£500-£749 per month||52%||53%||57%||49%|
|>£500 per month||7%||9%||14%||30%|
|% of rooms advertised at||May 2016||May 2015||May 2014||May 2011|
|£1,000+ per month||1%||1%||1%||0%|
|£750+ per month||7%||7%||3%||1%|
|>£750 per month||93%||93%||97%||99%|
|£500-£749 per month||59%||53%||44%||27%|
|>£500 per month||34%||40%||53%||72%|
From The Evening Standard Home and Property
Getting the best value out of your flat-share
If you want to maximise your profit margins when it comes to your flat-share, then you need to make sure that you follow some crucial steps. First of all, you are not going to earn much money if you are only offering a room and a bed, so think about furnishing not only the rooms but also any communal areas. As the old saying goes, “You have to spend money to make money.” Adding furniture can also increase the amount you charge per month. Decorating the house can also make it feel warmer and more welcoming, which will increase the valuation and therefore your earnings.
An abandoned office or a forgotten study can soon become a money maker?
Remember that offering your tenant access to utilities such as washing machines will also help your revenue and, with the extra income you will be earning, covering these costs will make only a small dent in your increased financial gains.
Maybe you are looking at the property you currently own and thinking, “I don’t have any spare bedrooms but I need some extra money – what can I do?” In that case, try to look at any unused space in your property! You can soon turn an abandoned office or a forgotten study into a money-maker. If you budget carefully to purchase a bed, wallpaper and other essentials, then it could soon be a quick and easy little earner for you. But first, you should ensure that you understand the market you are entering into. Look at the area you are living in and think about how you can offer a better living space than the other properties nearby. Always ask yourself, would you let your own son or daughter live here?
Turning your flat into a flat-share
With the possibility of earning £700 a month, you must remember some crucial details. There is a difference between a flat and a flat-share! There are some important things you need to think about if you want to transform your simple flat into a money making flat-share.
Firstly, you will need to dedicate certain living areas to become communal zones. These can include a dining room, kitchen and bathroom. This can create guidelines for tenants to make life a lot easier. You must also ensure that the property is habitable; for example, it must have heating, water and electricity on offer. You should also remember that you will need to create space for a number of people. For example, if you are renting your property to three people, there will be a problem if you only have two seats at the dining table!
We would recommend that you have a seat per person as well as one spare; this will make the flat look much more inviting. Also, allowing guests will make your flat-share more attractive to potential tenants.
How to rent out your room
When you are advertising your room to earn extra money, there are many tools that you can take advantage of.
You’ll have a better probability of finding the perfect tenants advertising over the internet
Firstly, there are online advertising websites, which will offer you a high-quality platform and can be seen by thousands of people. If somebody is searching for a room in the area in which your property is located – for example, London – then your advert will be more accessible to potential tenants. You can also use more traditional methods, such as creating posters and advertising in the local area.
If you advertise in shop fronts and also hand out leaflets, then there is a very good chance that your advert will attract some attention. You will not get as wide a variety of potential tenants this way, but you will get more interest from locals.
However, if you want to increase your probability of finding the perfect tenants, then we would recommend advertising over the internet.
Getting the most out of marketing your room online
Step 1 – Use a high-quality photograph that emphasises the best of what you have to offer. Make sure that your room looks like good value for money; with good (natural) lighting and clean, smart bedsheets you will attract a wide variety of tenants. Make sure that all areas are clean and tidy.
Step 2 – Use bold adverts to feature higher in the listings. Most websites will offer a paid package that will help you to get your advert featuring higher in the search listings. If you are planning to make a good profit, then a small advertising fee won’t significantly detract from your overall gross profit. These adverts are really recommended for boosting the number of potential tenants.
Step 3 – Include a good description of the property and explain why it’s such a great deal. Mention any additional features such as Wi-Fi as well as any added costs (e.g. utility bills or parking spaces). Anything that you are including in the price must be added into the description of the room you are offering. Not only will this make the offer seem better value for money, but it will also put you ahead of the competition.
Step 4 – Check the market for anyone who is looking for a room! Many people will share actively on social media and through websites that specialise in advertising rental properties. If you can make contact with people who are searching for somewhere to rent and inform them about your offer, then you can start gaining your extra income even faster.
Advice for screening tenants
Finding the right tenant for your property isn’t just about whether they like the property; it’s also important that they are right for you. You will need to identify what you are looking for in order to get the perfect tenant(s). Start by identifying the sort of person you would like to take the position. Issues you might want to consider include: religion, gender, sexuality, nationality, age, student, couples and any other details you are looking for in a flatmate.
If you find somebody who seems like the tenant of your dreams, then we would always recommend that you make careful background checks. The final piece of advice when screening tenants is to make sure you’ve done your homework on the property. The last thing you want is for them to ask about the average heating costs and leave you feeling completely flustered. Make sure you have all of your bases covered.
So, if you ever want advice or tips on how you can benefit substantially from flat-sharing, re-read all of the information provided above. Now you are ready! By following all of our advice in the steps above, you can easily start earning extra income. With all of the tips and tricks on this page, you have all of the necessary tools at your disposal to start earning extra money from a flat-share. From screening tenants to turning your flat into a flat-share and getting the best value out of your flat, the only person who can make a difference now…is you.