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3 Ways to Make An Extra £1000 Per Month From Property
How would an extra £1000 per month every month change your life? Would you get that car you have always dreamed of? Go on holiday more often? Get that dream house? Help out family and friends? Imagine how it would impact your day to day finances.
Time and time again through our 1 to 1 mentoring we have helped ordinary people make a success in property and rapidly increase their finances in a very short space of time. We have helped people profit £10k, £25k, £40k+ per month. Which is pretty inspiring, right?
But, I understand if you are a complete novice to property investing, these numbers might seem a future dream. That is why in this post I would like to share 3 ways to make an extra £1000 per month from property. Rather than talking about how to create a 6 figure amount from property, I wanted to share some ways of making £1000 per month.
If an extra £1000 would help you in your life, then keep reading…
1/ Renting Out Your Own Residence
i/ Serviced accommodation
With the growing traffic and demand on sites such as Airbnb.com, more and more people are choosing to go for the option of living in a house or apartment rather than opting to stay in a hotel for city or holiday breaks. What this means for us landlords & home owners is, if we have a property in an area of strong demand, people like to visit for short stays (city centre or near holiday destinations), we can offer our property out as a serviced accommodation and achieve more rent. If you offer your property as a serviced accommodation you do have to provide bedding, kitchen equipment and more, but the cost of such can be outweighed by the fact you can ask for higher rent from short term rentals. Check out Airbnb.com to see the potential of your property.
“But how do I rent out my house out as serviced accommodation if I live in it!?” I hear you ask!
I have a friend who lives near Anfield (The famous home of the best English football club ;)) he rents out his house every Liverpool (and sometimes Everton!) match days as serviced accommodation. He then either uses the money to go on a short weekend break (his goal is to travel more!) or he stays in a friend’s house for a night or two – maybe you could do the same?
ii/ Renting Out Spare Rooms
If allowing people into your home for a short term stay doesn’t appeal to you, then perhaps renting out the spare bedrooms in your house does? The best way to illustrate the potential of this is to give an example;
Let’s say you live in a 3 bedroom terrace. Downstairs you have an open plan living room/ dining room and then a separate kitchen. By splitting the living room & dining room with a stud wall, you have now created 3 rentable rooms, excluding your own bedroom, 2 upstairs & 1 down stairs. With there being enough space in the shared living room and kitchen, there is no need for the dining room.
For each rentable room you can charge £380 per month all bills included. Because there is now more people living in the house, the bills increase by approximately £120-£180 per month. However, even with paying the cost of the increased bills, you have just created a net profit of £960 - £1,020 per month. Not bad, right!
2/ Becoming a Bank
The interest rate you can receive in most banks at the moment is somewhere between a miserable 1-3% APR. If you take inflation into account too, quite frankly 1-3% sucks! At our development company Mantra homes, we work with people & offer 12% per annum on their money. That’s 1% per month! So coming back to the title of this post ‘how to make £1000 per month from property’, let’s say you have a savings pot of £100k, you can now receive £1000 per month (12% x £100k) on your money just by investing it in the correct place.
“But I don’t have £100k savings” I hear you say. Many people don’t have such a large pot to invest, but on the contrary, there are many people who do and haven’t got a clue what to do with it. If you are surrounded by people who have a pot of funds but aren’t sure what to do with it, perhaps you can act as the middle man/women, show them how they can receive 6% per annum on their money (still 2-6 times more than the banks offer!) and introduce them to a better investment. You can then keep the extra 6% per annum (12%-6% = 6%) difference yourself! With a £200k investment that’s £1000 per month.
I know a lot of people making a very strong living doing this simple but effective way of creating money.
Disclaimer: When you are doing this you have to be comfortable with where the money is going, be aware of FCA regulations and it is up to yourself to carry out your own due diligence.
3/ Lease Options
I am sure if you have read any of my previous post you will know that when I first started in property investing I increased my income in a matter of months by using lease options, in particular the strategies known as rent to rent & rent to buy. To see exactly what a lease option is & how I did it, you can purchase my Ebook I have wrote on the whole subject on amazon here: http://amzn.to/2m3BmSH
Lease options our fantastic because you can make a large income in a short amount of time with no credit & very little money. To explain rent to rent in its simplest form, it is renting a property from a landlord and then renting it out for more, you keep the difference between what you charge your tenants and what you pay the landlord. This works especially well, if you can apply some of the strategies mentioned in the previous points. For example; if you rent a property off a landlord for £1000 per month, rent out the rooms separately on individual tenancies to create a rental income of £2400 per month (8 rooms x £300), your bills and voids on the property total £400 per month, you have just created £1000 per month from a property you don’t even own!
In summary, the 3 ways above can make you an extra £1000+ per month income, so going back to the question ‘What would an extra £1000 a month mean to you?’
Would this mean more freedom from your job, no more overtime, more time to spend with your loved ones, a nicer car and less stress and more happiness?
Perhaps an extra £1000 is simply a starting point to gain more confidence and clarity to quench your thirst for more courageous and larger property deals?
Whatever your answer might be, I know one thing for certain, property can and will change your life.
It did for me. It did for Mark & Mike (my business partners) and did for those who took advantage of our 1v1 mentoring.
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