Spare Room & Holiday Let Hosting
What it is
Letting out a spare room (or a whole home when you are away) on Airbnb or to a lodger, or co-hosting for owners who want someone else to run their listing. The Rent a Room Scheme lets you earn up to £7,500 a year tax free from furnished accommodation in your own home.
Watch this first
Step by step
- 1
Check you are allowed
Read your mortgage, lease or tenancy agreement and check your home insurance. Many need written permission before you host guests. Scotland requires a short-term let licence, and England and Wales are bringing in registration, so check your council.
- 2
Understand the tax
Under the Rent a Room Scheme you can earn up to £7,500 a year tax free (£3,750 if you share the income) from letting a furnished room in your only or main home. Short stays through apps like Airbnb may need reporting to HMRC. Above the limit you declare it.
- 3
Get the room guest ready
Clean bedding, a lock on the door, storage space, fast wifi and a welcome folder. Smoke and carbon monoxide alarms are a must.
- 4
Take good photos and write honestly
Natural light, tidy, show the room and the bathroom. Honest descriptions get better reviews than overselling.
- 5
Systemise turnovers
Use a lockbox or smart lock, a cleaning checklist and automated messages. Or offer co-hosting to an owner and take a share (15–25%) for running everything.
AI prompts to try
Copy one of these into ChatGPT, Claude or your AI tool of choice and adapt it to your situation.
Get help setting it up
Hand the fiddly setup to a freelancer on Fiverr and start earning sooner.
Useful links
A free OddSync account gives you a booking page, quotes and invoices sent as a link, and a running tax estimate for your side hustle.
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