• Use what you have
  • UK

Side hustle guide

Renting Out a Spare Room

What you need
A furnished spare room in the home you live in
What it pays
Up to £7,500 a year tax-free (Rent a Room Scheme)
How you get paid
Rent from your lodger, as agreed between you
Available in
UK

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

  1. Check your mortgage, tenancy agreement and home insurance, as you may need permission to take in a lodger.
  2. Decide the rent, which bills it includes and your house rules.
  3. Advertise the room with honest photos and details.
  4. Meet applicants, check references and ID, and agree the terms in writing.
  5. 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.

We check each platform’s fees and rules on its own website and show the date we last did. Platforms can change them at any time, so confirm on the platform before you sign up. General information only, not financial or tax advice.

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