Generating income from residential property is more than buying bricks and mortar. If you want to know how to make an income from a property, you’ll need to know your figures and have a strategy. Whether it’s your own home or another property, you’ll also need the ability to spot profitable opportunities. From traditional buy-to-lets to short-term rentals, there are options for those willing to explore the property market. You just need to know where to look.

WHAT ARE THE DIFFERENT WAYS YOU CAN MAKE MONEY FROM A HOUSE?

To make an income from a property, the most common methods are renting it out (buy-to-let), letting spare rooms and short-term lettings as holiday accommodation. There are also other options such as property ‘flipping’, refurbish and rent, or rent-to-rent models. You could also consider renting out your drive if you have a spare parking space.

• Buy-to-Let: You buy a property for the purpose of renting it out long-term to tenants. Depending on the location and local rental market, this can offer a stable monthly income and potential capital appreciation over time. Stamp Duty is higher for second properties and landlords are liable for income tax. When managing tenants, you’ll need to abide by landlord legislation in terms of health and safety and maintenance.
• Rent a Room Scheme: Homeowners can let a furnished room in their home and earn up to £7,500 tax-free income per year. This is ideal for those with spare rooms.
• Short-term/Holiday Let: You could let a room or the whole property via a platform like Airbnb. The profitability of this approach will depend on the location, and you will need to factor in guest management and seasonal variations.

HOW TO MAKE MONEY FROM YOUR HOUSE

There are different scenarios where you might need to make money from your home. You might be struggling to sell your property at the market price. You may have inherited a property which needs a lot of costly modernisations or a full renovation. You could be at risk of repossession due to not keeping up with your mortgage repayments. Whatever the circumstances, you will need to consider your figures before you make your next move.

Below are some other ways to make money from your home:

• Renovate and Resell: It might be wise to sit tight and make the necessary renovations to your home before putting it back on the market. There are certain refurbishments that can help to increase the property value, such as modernising kitchens or bathrooms.
• Rent-to-rent: You could rent your home out to a third party, who would then manage the tenants on your behalf. This could provide a guaranteed income, allowing you to focus on repaying debts, however, you would need to find somewhere else to live.
• Refurbish and Rent: You would work with an experienced property development partner to refurb, rent and refinance your property. As above, depending on if you are able to live elsewhere, you could see a lucrative return in the long term.

YOUR TRUSTED PROPERTY DEVELOPMENT COMPANY

To conclude, without the right knowledge or experience, making money from property can seem like a minefield. If you want a good return on investment (ROI), you need to know your numbers. You also need a skilled team on hand to help with any refurbishments needed.

At RJJ Developments, we can help you generate income from your property and remove all the hassle of tenancy management. From buying rental properties to carrying out refurbishments, we’ll look at your options, including refinancing to rent out or reselling.

If you have any questions about this article or you would like a chat about property investing, please get in touch.

Thank you for reading our latest blog, How to Make an Income From a Property.

RJJ Development