Friday 27 April 2018

Finance Fridays – Renting out your home for events

Renting out your home for events

We were pondering if a pay rise is worth having for last week's Finance Fridays. This week we are talking about making a bit of money from your home. Many people rent out their own properties for special events in their area. The benefit of this is that it can just be for a few days or a couple of weeks at a time. This means you can go on holiday, stay with family and friends or book a much cheaper hotel to stay in. Let's have a look to see what is involved.

What sort of events should I look out for? - Usually big sporting events are the best for property rental. Events that are one day only won't have many people needing a whole house or apartment so look for ones which last several days at least. Think tennis and golf tournaments, horse racing meetings, music and literary festivals and county shows.

Think ahead – Some events return to the same venue year after year. Others move around or are special one-off events. The most important tournament in the golfing calendar is The Open and they have already announced all the venues for next four years. So this year it will be held at Carnoustie on the east coast of Scotland, followed by Royal Portrush in Northern Ireland, then Royal St. George's in Kent before going back to St. Andrew's in 2021. The Commonwealth Games will be coming to Birmingham in 2022 and on a much smaller scale Liverpool hosts the Netball World Cup in July next year.

What sort of property do I need? - It depends on what sort of client you are hoping to attract. Big name sports stars will have the money to have the best facilities available. Ensuite bathrooms, excellent WiFi in all rooms, top of the range audio and visual equipment and a fully equipped kitchen. A good security system and privacy will also be a must. On a lower scale you could be in the market to host a lower ranked sports player, sports fans, media employees such as journalists, broadcasters, camera crew or technicians.

What do I need to check before I rent out my property? - Firstly if you have a mortgage make sure you are allowed to rent out your home in the first place. For security purposes it is probably best to use an agency to market your property so they can vet your clients.

Your standard house insurance probably won't cover the letting and you will also need to think about public liability insurance.

If you earn money through letting out your house you must declare this through completing a self assessment tax form. You will be able to claim certain expenses such as agents' fees, insurance, repairs and general maintenance. What you claim must be wholly and exclusively for the letting. Therefore if you rented a cinema screen for the duration of the letting you could claim it as an expense but not if you bought it and then you kept it permanently in your home for your own use.

People who rent a home do so as they want a home from home but don't want it to be full of your stuff. If you have a large garage you may be able to store your personal possessions in there. If not you will need to find secure storage for your items such as clothing, personal papers and valuables.

Have you ever rented out your home? Do you think your home could be a good short term let?

If you want to join in with this week's Finance Fridays then add your link to the linky below. Any post concerning financial matters is allowed. Full details here. It doesn't have to be published today as you have until 23.55 on Tuesday 1st May 2018 to join in.
Finance Fridays

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