There are so many different types of rentals available today, from spare rooms and flats to offices and driveways, so why not take a look at some of them?
Renting out an office space
When looking to rent a room of any sort, it is important to calculate how much it is going to cost you so that you can budget effectively. The monthly rental fee is just one of the expenses you need to take into account.
It is important to have a true picture regarding the cost of renting an office space before you sign on the dotted line. Firstly, you need to find out the cost of rental per month, as well as the deposit, which you will need to pay upfront. While you should get this back once you end your tenancy, you must budget for it, as it will be a big outlay in the beginning.
Aside from this, there are many costs you will face throughout your tenancy. One example is energy bills. Electricity and gas is a major outgoing for businesses, but this does not mean that you need to pay over the odds for it. You should try to get off the ‘deemed contract’ you will initially be on when moving into a commercial office space, as they can be as much as 80 per cent more expensive than standard deals. You also need to budget for business rates when looking for an office for rent. Business rates land at the start of April every year, and they are taxed based on the rateable value of the property. You also need to have insurance in place and you may be subject to a service charge, especially if you rent out an office that is part of a bigger block.
What about renting out office space you have available?
Where to advertise office space for rent is the million-dollar question. There are many different options available today, from letting agents to social media websites, making it difficult to know where to begin. If you have an office for rent, read on to discover more about your options.
The truth is that you no longer need to spend your money on expensive letting agent fees. In the past, this was seen as the only way to rent a room out, but that is no longer the case. Letting agents will charge you a premium to advertise your property via them, and it can be much more efficient and cost effective to go down a different route when seeking office tenants. This route is the Internet. The Internet enables you to get your advert out there quicker than any letting agent can, and you can use a number of mediums to look for tenants. Social media is an extremely powerful tool for generating interest and getting the word out. However, it should not be used on its own, and if you do not have a very big social media following, you will find it difficult to appeal to a big audience. The best solution is to turn to one or several of the many listing websites that are available today. They enable you to post your advert and the good news is that they already have an established following that you can tap into.
Renting out your spare room
Rent out your room may be something you are thinking about if you are looking for different ways to make money. However, you probably have a few questions you need answered before you go ahead with this plan, from rent rates to eviction moratoriums. Below, we aim to answer some of the most common questions regarding renting out a room.
How much money can I make if I rent a room out? Unfortunately, there is no way to give a specific answer to this question without knowing the details about your property and the room you have available. The best thing to do is to take a look at rooms that are similar to yours and see how much money they are going for. Factors such as room size, location and facilities will impact how much money you make.
Do I need to pay tax? Once you earn more than a certain amount, you will need to start paying tax. Nevertheless, you may find that it is actually cheaper to pay tax. This is because you will be able to claim for expenses if you claim tax. So, it is really important to work out what is going to be the most cost efficient solution for you.
Will my housing benefit be impacted if I rent out a room?
If you live in a council house, you are able to rent out your spare room in order to make some extra money each month. However, it is important to be aware of what this means for your Housing Benefit.
Needless to say, the money you will receive from renting out a room far outweighs any deduction you will receive concerning your Housing Benefit. But, you do need to be aware of the deductions that are in place. This will depend on what state you are based in and the current rules they have in place, so you will need to check this out.
If you are renting the room to a family member, it is worth noting that there are some different rules in place. For instance, you may experience a reduction in your housing benefit because your relative’s income may be taken into account. This isn’t always the case, which is why speaking to an advisor is recommended.
Most people assume that renting out a council home is something they are not allowed to do. However, changes that were introduced back in 2013 mean that it is now possible, giving you a great opportunity to make thousands in tax-free rent.
In an attempt to claw back any reduction in benefits experienced because of the “bedroom tax” that was introduced, the Government made it possible for those in council homes to rent a room out. It is believed that 660,000 council homes would experience a housing benefit withdrawal due to having a spare room, and renting out the room is seen as an excellent way to offset the problem.
If I rent my room out, will it have an impact on my universal credit? This is something a lot of council tenants worry about, but you will be pleased to know that it has no bearing. You can keep the rent and retain full entitlement to any benefit. The income is not taken into consideration because the new rules from the Department for Work and Pensions does not specify that income from a lodger or boarder is to be treated as either unearned or earned income. So, if you have a spare room in your council home, this is definitely an option that is worth giving a lot of consideration to.
What about renting out your car parking space?
Renting out your car parking space for a certain amount sounds simple, and it is a very good way to make some extra cash. However, there are a few things that you do need to be mindful of. You need to make sure you are able to rent your car parking space out – it needs to be on your private property; it cannot be a permit you have on the street.
There is no denying that a rent my space for your car advert is something well worth going ahead with. Renting out your car parking space is a great way to make some extra cash. Nevertheless, there are a few things you need to be aware of. For example, you need to be considerate to any neighbors you share a driveway with. You also need to manage your possible liability, as well as any insurance or income tax issues. You do not need planning permission in order to rent your car parking space out, so long as you are not a nuisance to your neighbors. Nevertheless, there are some more officious local councils that are deeming it a change of use, and they are asking for a planning application fee.
Quite clearly, there is a conflict between the Government and the local councils, but you will be pleased to know that the Government, of course, has the final say. If your council decides to challenge you, you can refer to the planning guidance that has been posted by the Government.
So there you have it: an insight into some of the different rental options that are available for people today. We hope that this information has helped you to get a better understanding of what is available to you in terms of the rental market and indeed renting out your own room or parking space. In a year whereby the need to make money is greater than ever, it is certainly an avenue worth exploring.
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