Holiday let in your spare room or annexe

Holidaymakers, couples on short breaks, visiting friends and family, and people travelling for events or work.

A nightly rate, often with a cleaning fee. Income is seasonal and depends on your location, so busier months usually carry the quieter ones.

• Friendly, welcoming manner
• Keeping a space spotless
• Clear, prompt communication with guests

• Landlord or mortgage lender permission, and whether your home insurance covers paying guests
• Planning rules and any local registration or licensing scheme, which differ between England, Scotland, Wales and Northern Ireland, so check with your council
• Fire, gas and electrical safety duties for let accommodation
• How the income is taxed and whether the trading allowance applies, so check with HMRC
• Privacy and noise for you and your neighbours

Estimates suggest startup costs are typically around £1,000 to £5,000, depending on how much furnishing, decorating and safety work the space needs. Check your insurance covers paying guests before you take bookings.

Monthly revenue is typically estimated at around £500 to £2,500, depending on location, season and how often the space is booked. Check with HMRC how the income is taxed and whether the trading allowance applies.

Check landlord or mortgage lender permission, planning rules and any local registration or licensing scheme with your council, as these differ across the UK. Also check fire, gas and electrical safety duties for let accommodation.