Putting your spare room to work

Bedroom - MainDo you have a spare room in your home? Could you be using it for some extra income?

According to research by comparison website finder.com.au, there are seven million spare bedrooms across Australia, which equates to a whopping $1.4 billion in untapped real estate.

Eighty-five per cent of owner occupied houses and 60 per cent of rental properties have surplus bedrooms, the research reveals.

When you consider that the average cost to rent a room in 2015 was $202.06, that’s a lot of untapped rental income in the country.

While renting out your spare room might not be for everyone, it could be a great earner for those looking for a little extra income.

If you’re not keen on having a permanent resident, then you might prefer to put your spare room on an accommodation sharing website like Airbnb where you can meet passing travellers looking to stay in the area. This is a particular popular option for those in tourist locations.

Obviously, it’s not for everyone though and there are a lot of things to consider first, such as whether it goes against a tenancy agreement or will be covered by your household insurance.

Do your research before getting a new housemate or houseguest and make sure you are covered for any risks, such as missed rental payments, theft or damage.

You will also need to consider whether or not you’re willing to share your personal space with someone else, which isn’t for everyone.

But for many, the extra income from renting a spare room is very enticing, and some people are even turning rooms in their homes into mini hotel rooms that can be used for paying guests.

What do you think? Would you consider renting out your spare room?