What You Do
If you have a spare furnished room in the home you live in, you can let it to a lodger who shares your home. It takes more commitment than most side hustles, but it brings in a regular monthly amount.
What It Pays
- You set the rent. Under the Rent a Room Scheme you can earn up to £7,500 a year tax-free from letting furnished accommodation in your own home.
- If you share the income with someone else, the tax-free limit is halved to £3,750.
- Below the limit the exemption is automatic, so you don’t need to do anything.
How to Start
- Check your mortgage, tenancy agreement and home insurance, as you may need permission to take in a lodger.
- Decide the rent, which bills it includes and your house rules.
- Advertise the room with honest photos and details.
- Meet applicants, check references and ID, and agree the terms in writing.
- Keep a record of the rent you receive in case you go over the limit.
Good to Know
- If you earn more than the limit, you’ll need to complete a tax return, and you can choose whether to use the scheme.
- A lodger shares your home, which is different from renting out a whole property.
Where We Checked
Checked on 26 September 2026.