Philly Garrett, 34, earns £18,000 a year by letting out two spare rooms in her three-bedroom home in Reading. She charges her lodgers £775 per month each, totaling £1,550 monthly. The initial £7,500 of this income is tax-free under the government's rent-a-room scheme.
Bought home with lodgers in mind
Garrett purchased her home for £267,000 in 2020, always intending to take in lodgers to help with costs. She earns £22,000 as a property consultant, below the minimum wage, and has boosted her earnings through renting.
"It was always the plan, as I didn't need a three-bedroom house just for myself at this stage in my life," she told creatorzine.com. "I have now lived with 34 different people in my adult life, from renting in London, house shares at uni, ex-relationships, with friends, and now this house. Owning a home and having a complete choice of lodger feels the most stable."
Renovations to suit co-living
After moving in, Garrett renovated her house to make it more suitable for lodgers, creating a fourth bedroom and adding hard flooring in the rented rooms for easy cleaning. The kitchen was updated with plenty of cupboards for designated storage.
"I ripped out the carpets and put hard flooring in the rented bedrooms, so it's easy to keep clean," she said. "When I renovated the kitchen, I included plenty of cupboards so everyone has their own designated space. Designated storage in the bathroom is a simple yet effective way to keep the space clear."
Income and property value increase
The rental income has "far exceeded" her renovation expenses, and her property value has risen to £415,000 following the refurbishment. One lodger has lived with her for two-and-a-half years, and she has also hosted a temporary lodger for two months who worked on a local film production.
Garrett chooses lodgers who don't work remotely, including teachers, film crew members, and nurses, ensuring her home remains available during daytime hours. "You can choose your own criteria to suit your lifestyle," she explained. "We have chats, and have been out for Sunday roasts on occasions, but generally we have our own busy lives going on. It works well."
Business venture from personal experience
Following redundancy in 2024, Garrett founded Cucoon, an online platform helping single professionals co-purchase their first property together. The idea came from her own struggles entering the housing market, having saved £40,000 for a deposit but being forced to relocate from London to afford a home.
"I wanted people to have the opportunity to make home-buying choices that set themselves up for the future," she said. "Many people are choosing to stay single for longer and Cucoon offers a solution for those who are ready to buy without waiting for traditional milestones such as marriage or inheritance."
Garrett doesn't plan to have lodgers forever but encourages others to consider it when it "suits their life stage". She said: "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. Buying a house was the best financial decision I have ever made."
