Today, I have a fantastic guest post from Tom at Idle, all about how you can benefit from the sharing economy. Looking to make some easy passive income from things you already own? Keep reading!
Boost My Budget recently highlighted renting out your driveway as a simple way to earn extra cash. Today, we have a few more ideas from the sharing economy, which is all about renting out your unused items to others.
1) Rent out your spare room
Renting out a spare room or even your whole house while you’re away is usually the most profitable option. Thanks to Airbnb, this is probably the most well-known method. The average Airbnb host in London makes just over £3,500 per year, and even in rural areas, a typical spare room can go for at least £25 per night. However, it can be a lot of work, including changing bed sheets, providing towels, and keeping the room tidy. Plus, the idea of having a stranger in your home overnight might not be for everyone. Fortunately, there are other less demanding options.
2) Rent out your car
Several apps and websites can help you make money from your car when you’re not using it. Since cars spend about 95% of their time parked, this could be quite lucrative. A standard car on popular sites can earn over £200 per month, with daily rates around £20 for basic cars and over £100 for sports cars. Peer-to-peer car rental services include comprehensive insurance, so any incidents while your car is rented are covered, and it won’t affect your no-claims bonus. The renter is responsible for any excess.
3) Rent out your home office space
If having someone stay overnight is too much, consider renting out your home during the day. If your sofa or desk is unused during working hours and you have good WiFi, you could rent the space to freelancers or start-ups. This is especially profitable in cities, with potential earnings up to £20 per day in London. People might use your space for various reasons, such as quick naps, filming, or even physiotherapy sessions.
4) Rent out your storage space
If you’ve recently cleared out your loft, attic, cupboards, or garage, you might have some spare storage space. With self-storage prices being high, some sites offer the opportunity to store items in other people’s homes. You could earn £10 per week for a small space. This option provides a guaranteed weekly fee without the need to manage new bookings, making it truly passive income.
5) Rent out your garden
If you’re uncomfortable with people sleeping in your house, let them camp in your garden. You must allow them to use your toilet to avoid being an unlicensed campsite, but you can earn between £5 and £25 per night. Alternatively, if you have a large garden, consider renting it out for events like weddings, sports, or BBQs.
6) Rent out your bike
While London has its Boris Bikes, most other places in the UK don’t have a bike-sharing scheme. Some sites now let you rent out your bike when you’re not using it. A standard bike can earn just under £10 per day, while high-value racing or mountain bikes can fetch up to £50 per day. Check the site’s terms and conditions, as some require a deposit, while others offer insurance.
7) Rent out your other things
There are many places where you can rent out items you don’t use often, especially expensive ones like drones, camera equipment, power tools, sports gear, musical instruments, speakers, or game consoles. Earnings vary widely, from £100 per day for a high-end drone to £5 per day for a basic power drill. Always check the site’s terms and conditions to understand the coverage for damages.
8) Rent out your driveway
Renting out your driveway can be a great way to earn extra money, especially if it’s near a busy station, sports stadium, or hospital. You could rent it out while you’re at work, allowing someone else to use it during the day.
Combining all these options could realistically earn you over £1,000 per month. However, managing messages and bookings across multiple sites can become overwhelming, potentially turning into a part-time job. Idle is a new site designed to simplify this process by helping you sign up for various platforms and consolidating all your messages and bookings onto one dashboard.
What else do you need to know?
There are a few common issues with renting out your things, but interesting solutions are available:
– Insurance: While most sites offer their own insurance, some don’t. New insurance companies now offer short-term coverage for rented items (check out Guardhog or Trov for more information).
– Access to keys: Renting out your home or car can be tricky when it comes to handing over keys. Smart key boxes or services where you leave your keys with a trusted neighborhood shop can help.
– Tax: The government allows the first £1,000 you earn from the sharing economy to be tax-free, but the status of this rule can change, so check the requirements when you start making money. Otherwise, you will need to pay tax on your earnings.