House Hacking: How to Live in London Rent-Free…
Hey guys, Samuel Leeds here. Every day, I post videos on my Youtube channel to share tips and hacks to help you attain financial freedom through property investment. You can return the favour by subscribing to my channel and watching, liking, and sharing my videos, which I will highly appreciate.
Now, did you know that you can live rent-free in Central London? You can. In this article, I'll discuss a strategy called house hacking. And contrary to what the name may suggest, it's nothing like hacking systems and computers or squatting, which are both illegal. House hacking is perfectly legal.
What Is House Hacking?
We all know having a roof over your head in London will cost you £1,000 or thereabouts, would you agree? Even if you're only renting a room, it could cost you up to £1,500 if it's in a decent part of London. So how much more would it cost to rent a two-bedroom or a three-bedroom? About £2,500 per month because they don't charge rent per room.
Now, to house hack and live rent-free, follow these steps:
- Find a 3-bedroom flat like the one I found on OpenRent advertised for £2,450 pm. There are many other three-bedroom flats in London listed on this and other sites.
- Contact the landlord and agree to pay the asking rent on the condition that you can have lodgers in the other two rooms. The landlord will likely agree because either way, he gets his rent money.
- Before you move in, advertise the two spare rooms on SpareRoom. So assuming I wanted to rent the flat advertised on OpenRent, I would place an advert saying ‘two rooms in Central London right near River Thames.
- Rent out each room for £1,250, which as we concluded is not exorbitant in London. Then you use the £2,500 that the lodgers pay you to pay the landlord his £2,450, which essentially means you'll be living in the flat rent-free.
And that, ladies and gentlemen, is what we call house hacking. Simply put, house hacking is renting out part of your primary residence to offset your living expenses or generate rental income. If I had to start from scratch tomorrow for one reason or another, I wouldn't pay any rent because I would move into a flatshare or house share.
I know of people who have applied this strategy with a four-bedroom flat. Not only are they living in London for free, but they're also getting paid for it. And you can do this anywhere, including Liverpool. Do you realize you can rent a room in Liverpool for £400 and rent an entire house for the same amount! So if you rent a three-bedroom house and rent out two of the rooms for £400 each, you'll get paid for just living there. That's house hacking at its best.
If you decide to do this, I'd like to hear about your experience. So hit me up on social media and tell me about your living rent-free. It will give me satisfaction to know that doing this video was of significance. For more hacks, subscribe to my channel and don't forget to like and share my videos so more people can benefit. Until next time.
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