In recent times, traders have been taking a look at completely different methods to try to maximise the returns they’re receiving on their rental properties.
One intelligent technique has been to both buy a property that has a granny flat on it, or construct a brand new one, with the intention of renting it out, including one other income stream. The additional earnings might help flip a negatively geared property into one which’s positively geared, or it might be a good way to assist repay your PPOR (principal place of residence) even sooner.
Whereas the elevated money circulation is nice, it is essential to arrange your granny flat in the best approach with the intention to entice tenants and enhance your rental earnings.
Enchantment to the renters
When contemplating renting out a granny flat, it is essential to grasp what a part of the rental pool it’s going to enchantment to. For essentially the most half, a granny flat is probably going competing with different varieties of rental accomodation equivalent to studio flats or share homes.
Which means, it is usually going to be singles, college students, or younger {couples} who’re on the lookout for cost-effective choices. You’ll due to this fact need to enchantment to these kinds of folks, by having the whole lot arrange and able to go.
Fundamentals like air-con and a dishwasher will make an enormous distinction in what will seemingly be a smaller house, and it’ll additionally set you other than different properties equivalent to share homes, which can not have the identical degree of options.
You may as well have a look at including extras to entice renters, equivalent to entry to different areas of the property, equivalent to a pool if there may be one, or providing parking if the property has further house for a number of vehicles.
On prime of that, simply having a clear and trendy inside, equivalent to a brand new or a looked-after kitchen or kitchenette could make an enormous distinction. Older granny flats can usually be uncared for or used for storage. Earlier than renting it out, a recent coat of paint, new window coverings and a few carpets or floorboards would go a really lengthy strategy to interesting to renters.
All inclusive
One other method to making ready a granny flat is to take issues one step additional and make the expertise utterly self contained.
You may go so far as providing a furnished or semi-furnished property, with issues like a mattress and a fridge. It could be very simple so as to add on options like free wifi, and even make payments (energy and water) inclusive and cost the next charge of lease.
This may enchantment to folks like college students who may solely be there for a set period of time every year, or folks on the lookout for short-term accomodation. The draw back can be that whereas it is perhaps simpler to draw tenants, they may not be there long run, which suggests you may want to repeatedly be looking out for tenants.
Managing the Property
Lately, it is a good suggestion to work with a property supervisor, not only for the comfort of getting them deal with the day-to-day points with the property and to search out tenants, however to additionally handle it from a authorized perspective.
Renting out granny flat is just not unusual, but it surely does not happen in each location as legal guidelines round granny flat are completely different in every state. Communicate to a property supervisor earlier than you begin taking place the granny flat route and ensure it is potential, firstly, and likewise sensible.
They will even have the ability to deal with all the problems that include screening tenants, gathering lease, and dealing with issues in your behalf.
Renting out a granny flat may be a good way to spice up a property’s earnings and in lots of instances, the associated fee to construct one may be recovered by lease far faster than a conventional home. Nonetheless, it is essential to have a look at your numbers and be certain that what you are constructing or shopping for will enchantment to the people who need to reside within the space.
