Student finances solved: by kicking students out

Hannah Speed, a 19-year-old student at Durham University, hit the headlines after her mum rented her room out on Airbnb - just five days after she left for university. She was furious, and only mollified when her mum, 56-year-old Pat offered her 10% of the profits. But Hannah is wrong to be miffed: her mum is a financial genius.

When the children go to university, parents struggle for all sorts of reasons. For some 'empty nest' syndrome kicks in, while for a huge number of others, the financial burden can seem overwhelming. Suddenly, they have to find the cash not only to help with tuition fees, but to pay for accommodation and living costs for their offspring. It's no wonder that so many parents find it an impossible drain.

Airbnb

By renting out her daughter's old bedroom, Pat has hit on a brilliant solution. In fact, Airbnb has calculated that with the average room costing £65 per night and the average number of days a student is away at University each year around 210 days, this income equates to a staggering £13,650 a year - more than the average price of tuition.

The flexibility of Airbnb means that parents can plan to fill the room when it's available - but keep it free for holidays and weekends when their kids come home to visit. Even if they only list the property for the website's average of 46 days they will make an average of £2,000 a year - which will help towards living costs.
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James McClure from Airbnb said: "With so many new students leaving rooms empty while at university, renting out that spare room and unlocking its earning potential should be an appealing and viable option for many homeowners in Britain."

Lodgers

Hannah objected to the thought of strangers coming and going - and using her en-suite. But if you or your student child don't like the Airbnb option, you can always rent the room on an ongoing basis. Matt Hutchinson, director of flatshare site SpareRoom.co.uk, says you could get a more long-term lodger.

He says: "The average UK lodger rent is £424 a month and, from April, all of that is tax-free under the government's Rent A Room scheme - because the tax-free threshold is rising to £7,500 per year. In London, where demand for rented accommodation is incredibly high, the average lodger income is currently £708 a month."

He points out: "If your child needs their room back during the uni holidays, consider targeting the student market yourself to find your lodger."

Take care

Of course, inviting anyone into your home can come with complications. Hutchinson says it's important to check out potential lodgers, and take time to choose someone who will fit into the household. It's also important to establish any house rules upfront, to minimise any problems along the line.

If you use Airbnb, you will have the company's host guarantee, but you will also need to speak to your insurer to make sure you are not invalidating your cover. You may also want to think about any valuables or fragile items that may be worth putting up in the loft or in a lockable room, to keep them safe while you have guests.

And, as Pat discovered, it's definitely worth talking to your offspring before renting out their room too - or you could find them in the national press complaining about your money-making schemes.