Looking to bring in extra income? Rent out your Granny Flat!
If your home has a garage conversion, cottage or granny flat, you could be making extra money by renting it out.
10/05/2023
If your property has a garage conversion, granny flat or garden cottage you could be making extra money by renting this out. According to NFI PM Solutions a well-appointed living space or flatlet is a great source of extra income and can also add significant value to your property. Plus, extra living space offers a wide selection of lifestyle options that may come in very handy in the future.
The benefits of a garage conversion, flatlet or garden cottage can be a wonderful first step towards independence for teenagers and university students, a work-from-home office, or an entertainment area.
Nowadays we are seeing a lot of grandparents moving in with their children after retirement due to the lack of suitable accommodation and our increasingly high cost of living. Adding a granny flat or cottage can be a real lifesaver in these situations - particularly since it can generate income in the meantime.
National Rentals Manager for Rawson Property Group, Jacqui Savage, advises that garden cottages or flatlets, depending on the location, can be rented out to earn a decent monthly rental income. She advises the following action:
1. It needs to be private
A top priority for those wanting to rent a granny flat or garden cottage is privacy. This is a common concern for tenants in the market for this type of accommodation and a self-contained cottage or flatlet is more likely to be a popular choice, particularly if you are wanting to secure long-term occupants.
If you do have a flatlet or cottage that you are thinking of renting out, the first priority when getting this ready for a tenant is to ensure that it has a separate entrance and a dedicated parking area.
2. It needs to be self-sufficient
Tenants are also on the lookout for properties that are self-sufficient. If you are able to add a separate prepaid electricity meter this would be a good idea and also an additional beneficial asset. In fact, the more self-sufficient you can make your rental property - the easier it will be for you and your tenants.
You may also want to install an alarm system that can be activated without access to the main house, as well as security lighting that can be directly controlled from inside the rental property.
3. It needs to have a spacious layout
While the property may not be a large one, a good layout is essential for successful rental. You can achieve this with clever planning and it will definitely increase the amount of tenants. Comfort is important for any tenant, even for a small space. If you want to attract tenants for the long-term, look at how you can achieve a spacious floor plan. Priorities should include a workable kitchen, a convenient space for a TV, and reasonable amounts of bedroom, bathroom and kitchen storage.
Take into consideration that flatlets with separate bedrooms tend to achieve higher rentals than studio-style layouts. If you can afford it, erecting a drywall divider might be a good idea to separate individual areas. Showers are also far more popular than baths since they take up far less bathroom space, plus they save on water consumption.
4. Staging the flat or cottage
Staging any property for view definitely has its advantages. Tenants that walk into a property that is set out with quality fittings and finishes, plus a few personal touches, and that is also well-maintained, will be more interested and this will increase your potential rental income. Consider items such as granite countertops, quality flooring, and choose classic styles that appeal to a wide range of tastes and won’t go out of date too quickly.
Choose a soft, neutral palette for decorating since the idea is to create a neutral backdrop for your tenant’s personal items and furnishings. A neutral palette will also make rooms feel brighter and more spacious. If you go for an all-white palette, just try to add a few warmer touches to make the space feel more welcoming.
5. Choose the right agent
Savage advises that, a talented rental agency is your secret weapon and will make a big difference when setting up a granny flat to let. Find a rental agent as early as possible and use their experience to focus your energy in the right spot. Tenant preferences and priorities vary depending on market segment and neighbourhood, so having the inside scoop can save you a lot of time and effort.
Adapted from article courtesy of Property24