Philly Garrett generates up to £18,000 annually, approximately $24,000 USD, by renting out spare rooms in her three-bedroom home in Reading, England. Garrett purchased the property in 2020 for £267,000 with the intention of housing lodgers to offset her mortgage costs. She subsequently renovated the house to accommodate lodgers, adding a fourth bedroom to maximize space utilization.
Garrett currently lives with two lodgers, generating £1,550 per month, which amounts to £18,600 a year. The first £7,500 of this income is tax-free under the United Kingdom's rent-a-room scheme. She stated that the revenue from renting rooms has significantly exceeded her renovation costs, making it a financially beneficial decision. Following the renovations, her property's value increased to £415,000.
"It was always the plan, as I didn't need a three-bedroom house just for myself at this stage in my life," Garrett 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."
Before taking in lodgers, Garrett undertook renovations, including replacing carpets with hard flooring in the rented bedrooms and ensuring ample cupboard space in the kitchen for individual use. She also designated storage in the bathroom to maintain organization.
Her longest-term lodger has resided with her for two and a half years. Garrett also hosted a short-term lodger for two months who was working on a nearby film set. She prioritizes selecting lodgers who do not work from home, such as teachers, film crew, and nurses, to ensure she has the house to herself during the day. "You can choose your own criteria to suit your lifestyle," she said. "We have chats, and have been out for Sunday roasts on occasions, but generally we have our own busy lives going on."
In 2024, after losing her previous job, Garrett launched Cucoon, an online platform designed to assist single professionals in jointly purchasing their first homes with appropriate legal and practical safeguards. This venture was inspired by her own difficulties in accessing the property market, which required her to relocate from London despite having a £40,000 deposit saved. She also observed friends successfully navigating co-buying.
Garrett indicated that she does not plan to have lodgers indefinitely. However, she advocates for the practice, especially for individuals seeking financial support, particularly with mortgage payments, at different life stages. She anticipates that the increased home value and mortgage payments made during her time with lodgers will provide a stronger financial position when she eventually starts a family. "Buying a house was the best financial decision I have ever made," she stated.