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The cost of living is rising, making it appealing to have a lodger or rent a room in your home for extra income. The government offers the Rent a Room scheme, allowing you to earn rental income tax-free up to a set limit. The speaker, Kozan from Financial Madness, explains that this strategy is distinct from buying a property solely for rental purposes. Instead, it involves living in your property while renting out a spare room to lodgers, not tenants. The video aims to clarify how this process works and the specifics of the Rent a Room scheme.