How to cash in on the summer’s sporting events
Sam Meadows finds out how to make money from your home during sporting events
Andy Murray may have pulled out of this year’s Wimbledon tennis championships, but there is one group who will be confident of a solid return: homeowners in SW19. Those within walking distance of Murray Mound (once known as Henman Hill) are set to rake in £2m over the course of the tournament – almost as much as the £2.25m pot handed to the winner.
The average nightly fee for a room near the All England Lawn Tennis and Croquet Club is £100, according to Airbnb, the short-term lettings website.
An expected 80,000 extra tourists are expected to arrive in London for the championship, and all will need a place to stay.
The going rate for a whole house is £250 a night or more, while the top players will pay as much as £15,000 per night for the largest and most luxurious homes in Wimbledon, according to Tennis London, a firm that provides this service.
One resident set to benefit from this influx is property manager Jo James, 39. She and husband Doug, 40, who works in sports marketing, moved to Wimbledon around three years ago, and live within walking distance of the famous club.
During the course of the two-week tournament, they will be earning between £150 and £250 a night renting out their house, which can sleep up to nine people. They have multiple bookings – including one of the players.
“A really close friend invited us to their wedding in Bali,” Mrs James said. “We thought we weren’t going to be able to go, but this will mean we can afford it.”
The couple and their two children – Emily, five, and Alex, three – will be staying with friends nearby for the fortnight. In the future, they plan to rent out their house during school holidays to fund family trips away.
“Letting our home is a bit weird, because obviously there are strangers in your house and you aren’t there, but, on the whole, it’s been really positive,” she said.
“You form a strange relationship with these people. They’re in your house, and your pictures are still up. But people send lovely messages – we had a French couple who sent us a picture of themselves in our living room having a nice evening.”
How much can you make during sporting events?
It’s not just Wimbledon. There are a host of sporting events taking place in Britain during the summer, and all offer homeowners a chance to cash in.
According to Airbnb, hosts in Dundee, the location of the Open – golf ’s oldest competition – can expect to make £350 from renting their home over the weekend the tournament takes place. The city will receive a massive 138pc surge in visitors.
There will also be a sharp increase in visitors to the Northamptonshire countryside surrounding Silverstone for the British Grand Prix, where hosts could make £150 from those flocking to see Lewis Hamilton try to win another world championship.
Ben Wosskow, of Love Home Swap, the house exchange website, said demand for properties near Wimbledon had soared. He said the site’s users saved an average of £2,750 on travel accommodation.
If you don’t have a spare room to rent, you can still benefit. According to Justpark, which helps homeowners rent out parking spaces, Wimbledonbased users made £22,000 during the championship last year.
Of the 200 spaces listed within one mile of Centre Court, the top-earning one netted its owner £1,500.
Anthony Eskinazi, founder of Justpark, said: “For people travelling to Wimbledon by car, parking nearby can be a nightmare. Hundreds of local people earn significant extra income by renting out their driveways on our platform, which is tax-free for the first £1,000.”
What are the tax implications?
As well as the obvious benefit of making money out of your home, there are tax advantages to a shortterm let – but there are also several limits and regulations to be aware of.
Homeowners can make £7,500 in tax-free rental income every year, using the rent-a-room relief, which also applies to entire house rentals, as long as it is your main residence.
The room must be fully furnished and within your main home – so a fully separate granny annex would not qualify – and it can only be let for residential purposes, not as an office or for any business purpose.
If you provide any paid-for extras, such as meals or laundry services, the value of these must be added to the rental income to work out total receipts. Any income above £7,500 will be taxable at your marginal income rate.
Sarah Ghaffari, of the Institute of Chartered Accountants, said: “Wimbledon and other large events provide a perfect opportunity to rent out a room as sports fans race to the capital to cheer on their favourite players.
“The tax exemption is automatic, if income made is lower than the threshold. If you exceed the £7,500 limit, you will need to file a tax return.”
She warned homeowners that they must tell their mortgage lender if they are taking in a lodger or renting out their home. If they fail to do this, they could face penalties or, in the worst cases, have to repay the loan immediately.
Those looking to make a more regular income from their property than the odd week on Airbnb could try a holiday let. These are untouched by the recent Government reforms that have made the tax system more punitive for private landlords. However, there are strict criteria.
The property, or room, must be in Britain and suitably furnished. It must also be available to let for at least 210 days in the tax year, and commercially let for at least 105 of these days.
Single bookings that last longer than 31 days would be considered buy-to-let income, and so not qualify for the holiday let tax reliefs.
‘Large events provide a perfect chance to rent out a room’