Mark Edwards is General Manager at Rocket Lawyer, the online legal service providing businesses and families with easy-to-use legal documents and affordable access to specialist lawyers. In this article, Mark shares some ideas for raising some extra cash.
We know the feeling. Money is tight and time is sparse but there’s only so much we can squeeze out of our income, so we have to turn to more innovative ways of making a bit of extra cash, especially in the run up to Christmas when budgets are even tighter. One such way is to use legal documents to our financial advantage and here are our top tips on how you can do it yourself.
Rent out your car parking space
Renting out your parking space can be a good way of raising some extra cash. You can advertise your parking space for free on Gumtree, or there are websites that will manage the advertising and rental for you for a price. It's best to put things in writing from the start by creating a car parking licence so that everyone is clear on where they stand. The licence helps you to formalise the arrangement and be sure of getting the space back when you want to and it covers everything from the fee to your and the licensee’s responsibilities and indemnity for all claims arising from the use of the space.
Take in a lodger
If you have a spare bedroom, take advantage of the government’s ‘Rent a Room’ scheme which allows you to earn £4,250 a year tax-free. As long as you get the details right, a lodger can be a tax efficient way to raise some extra cash and give yourself a bit of company. Again, there are websites for advertising rooms, such as Spareroom.co.uk. A lodger agreement covers the rent, deposit and responsibilities on each side, as well as ensuring you can easily get the room back or have a lodger leave when you need to.
Turn your spare room into an office
If you work from home or operate through a limited company, you can formalise the arrangement by creating a home office space contract for yourself, so you can claim back the overheads in running the business for tax purposes. Such contracts cover the fee payable for the space, the rights given to the user as well as termination details so you can get your space or room back when you need it.
Rent your property as a holiday home
If you’re going to be away from home for a while, why not rent out your home for the duration you’ll be away? Not only will you be earning a bit of extra money, it also means your house won’t be sitting empty – ideal burglar bait. Make sure you have a holiday letting agreement in place beforehand though to protect yourself as well as your tenant. This agreement makes it simpler and quicker to remove guests who refuse to leave or cause damage to your property. It also lays out payment terms and highlights both your obligations and your guest’s rights.
For more information, visit Rocket Lawyer and for news and updates, please visit Rocket Lawyer's blog at blog.rocketlawyer.co.uk.