Are you finding it hard during the downturn in the economy? Fancy going on holiday next year, but you can’t afford it? Well the answer could come from your spare room. Simply by letting it out during the world’s biggest sporting event next year, you could increase your income by up to £1,000!

So how do you go about doing it?

Michael Holmes, presenter of Channel 5’s Britain’s Best Home and editor-in-chief of Homebuilding & Renovating magazine, Real Homes magazine and Period Living magazine, believes that by clearing out your spare room and renting a self storage unit for as little as £5 a day, 5.4 million homeowners, who have a additional space, in the UK could be cashing in on local events such as the famous Edinburgh Hogmanay, Oxford Literary Fair, the Grand National in Aintree or the PGA Golf Championships in Surrey.

He explains: “For those who don’t feel comfortable sharing their home with a lodger on an ongoing basis, short lets for special events can prove highly lucrative.

“For a property located close to a major event, such as those in Edinburgh, across London or Liverpool, it can make real sense to clear out the spare room or rooms, put items into self storage and let it out for the duration of the event. Self storage units provide a flexible, easy and clean way to clear out the clutter for a short period of time and the potential rental income will far outweigh the self storage costs.”

“However, homeowners should check potential guests, take references and look at getting paid up front, so there is minimal risk in letting out a room on a short term basis. For people who are keen to let their home out in its entirety for the duration of an event, locking their valuables away or putting them into self storage is vital.”

Here’s Michael’s top tips for renting out your room on a short term basis:

1: Renting a room during popular local events can help boost your household income and help towards your mortgage and bills, plus there are tax benefits too – you can earn up to £4,250 tax free for a furnished room

2: You won’t have to register as a landlord, but you need to tell your mortgage company and home insurers. Also you must make sure your home meets safety regulations – ideally with smoke alarms and a gas safety certificate

3: Store your personal items in a flexible self storage room then you don’t have to worry about anything going missing. Providers such as Big Yellow offer smaller rooms from as little as £7 a day for a little as seven days

4: Make sure the room you are renting out appeals to the right sort of paying guests. Take good photographs to help with marketing and have a clear idea of who you want to share with

5: Find potential guests through online sites such as http://www.2012homerentals.com or www.eventfulstays.com. You can also register with an agency such as www.rentduringthegames.com

6: Interview candidates over the telephone first and check their work references. Do some research online by checking social media sites to make sure everything rings true

7: Use your instincts and always take references, such as family, employer and previous landlords and check them

8: Discuss and agree the key ground rules from the outset, covering the following: rent; payment terms; rules on guests/sharing; access to other rooms/privacy; rules on tidiness/cleaning; general noise; bathroom and kitchen arrangements; parking

9: Request half the rent before the tenant arrives so that if things go wrong you have protection. Ask for the remainder on the last day of the rental period

10: Treat your lodger with the respect you would like them to give you. Sharing can be difficult at times but if you are considerate and communicate, it can work very well for everyone and be a great financial solution

So why not have a think about releasing some extra cash from your spare room next year and enjoy that holiday that you’ve always dreamed of!

Michael Holmes chats through his top tips