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The rising cost of living makes renting out a room in your own home a viable option to earn extra income. The government’s Rent a Room scheme allows homeowners to earn tax-free rental income up to a certain limit. This video tutorial by Kozan from Financial Madness explains how having a lodger works, distinguishing it from buying property solely for rental purposes. The focus is on homeowners renting out spare rooms while still residing in the property, which involves getting lodgers rather than tenants. The video aims to provide insights and help viewers manage their finances better.