I make £18,000 a year by renting out my spare rooms to strangers - and I even renovated my home to make it 'lodger friendly'

A woman has revealed how she earns up to £18,000 a year by renting out her spare rooms to strangers - and has even renovated her house to make it lodger-friendly.Philly Garrett purchased her three-bedroom home in Reading for £267,000 in 2020, with plans to have lodgers move in to help cover the costs.When she moved in, the 34-year-old renovated her home so that it would be suitable for lodgers and even created a fourth bedroom to help utilise the space.Philly lives with two lodgers at her home which brings in £1,550 per month – equating to £18,600 a year, the first £7,500 of which is tax-free thanks to the government's rent-a-room scheme.While an unconventional lifestyle choice, Philly explained that the revenue from renting rooms has 'far exceeded' the total costs of renovating her home, making it a worthwhile decision.Her property is now worth £415,000 following the renovation, while living with lodgers has also meant she has been able to focus on building her business without worrying about mortgage payments.'It was always the plan, as I didn't need a three-bedroom house just for myself at this stage in my life,' Philly explained.'Owning a home and having a complete choice of lodger feels the most stable. And renting spare rooms out helps with the housing shortage, by using houses to their full capacity.'Philly Garrett purchased her three-bedroom home in Reading for £267,000 in 2020, with plans to have lodgers move in to help cover the costs When she moved in, the 34-year-old renovated her home so that it would be suitable for lodgers and even created a fourth bedroom (pictured) to help utilise the space Her property is now worth £415,000 following the renovation, while living with lodgers has also meant she has been able to focus on building her business without worrying about mortgage paymentsBefore moving in a lodger, Philly revealed she 'ripped out the carpets and put hard flooring in the rented bedrooms'. 'When I renovated the kitchen, I included plenty of cupboards so everyone has their own designated space,' she added.'Designated storage in the bathroom is a simple yet effective way to keep the space clear. It feels rewarding that the renovations have paid off.' Philly's longest-standing lodger has lived with her for two-and-a-half years, while she has also had a short-term lodger stay for two months while working on a nearby film set. The live-in landlord has 'complete choice of lodger', choosing people who don't work from home – such as teachers, film crew, and nurses – to ensure her house is free during the day for her.She added: 'You can choose your own criteria to suit your lifestyle. We [my lodgers and I] have chats, and have been out for Sunday roasts on occasions, but generally we have our own busy lives going on.'After losing her former job in 2024 Philly launched Cucoon, an online platform helping single professionals co-buy their first home together, with the right legal and practical safeguards in place. It was inspired by her own struggles to get on the property ladder – having to leave London in order to afford a home, despite having £40,000 saved for a deposit – and seeing friends successfully co-buy together. Before moving in a lodger, Philly revealed she 'ripped out the carpets and put hard flooring in the rented bedrooms'. Philly's longest-standing lodger has lived with her for two-and-a-half years 'When I renovated the kitchen, I included plenty of cupboards so everyone has their own designated space,' Philly added While an unconventional lifestyle choice, Philly explained that the revenue from renting rooms has 'far exceeded' the total costs of renovating her home, making it well worthwhile for herShe added: 'I wanted people to have the opportunity to make home-buying choices that set themselves up for the future. 'If a service like this existed at the time, I would have used it to buy a bigger home in an area of London that felt safe. 'I didn't know anyone who was able to buy single, especially without family help, and I don't believe home ownership and ability to build wealth should be dependent on relationship status.'While Philly doesn't see herself having lodgers forever, she encourages people to try it – at a time which 'suits their life stage' due to the financial support it provides, particularly when it comes to managing mortgage payments.'When I have a family one day or young children, I wouldn't use the rooms for lodgers, but if that time comes, I'll be in a better financial position having bought, thanks to house appreciation and paying down the mortgage,' she added.'Buying a house was the best financial decision I have ever made.'