Granny Flat - renter perspective

[jsoe]

Hi all,
I've been reading up about Granny Flats and I like the idea. Just gotta look into it a bit more regarding financing and the developers contributions, etc.

My question is how do renters usually react to having a GF at the back of the house. E.G. if I have a 3 bed main house, and a 1 bed GF in the backyard, do I have 2 separate leases for these? Ideally, I'd have a family in the main house, and a student in the GF, right?
I know GF brings nice little cashflow every month, but would that bring down the rent from the main house? Coz the renters might not like the idea of having another tenant at the back of the yard?

What are the other implications? Like, do we have to define "common" areas? I mean the student in GF might also wanna use the clothes line or a grassy area to lie down, etc.

Has anyone come across these issues? How do you deal with them?
Thanks!

 

[Propertunity]

Hi all,
I've been reading up about Granny Flats and I like the idea. Just gotta look into it a bit more regarding financing and the developers contributions, etc.

In relation to Section 94 contributions, some councils charge them and some don't. It can be as much as $7-11K if you buy in a council area that charges them.

My question is how do renters usually react to having a GF at the back of the house. E.G. if I have a 3 bed main house, and a 1 bed GF in the backyard,

It does not suit everybody, so vacancies can be a little longer with this type of set up.

do I have 2 separate leases for these?

Yes, 2 separate everythings. Bins, clothers lines, letter boxes etc.

Ideally, I'd have a family in the main house, and a student in the GF, right?

NO. Family in house - sure. Put granny or grandpa in the granny flat. 50% divorce rates also see a large pool of 40-50 year old now-single males & females to choose as tenants. They are not as noisy or disruptive as students or newly left home defactos / single males / females.

I know GF brings nice little cashflow every month, but would that bring down the rent from the main house? Coz the renters might not like the idea of having another tenant at the back of the yard?

Slight discount for the inconvenience to the house tenants.

What are the other implications?

Try to match the tenants. As a LL you will be up for the water rates if not metered separately.

Like, do we have to define "common" areas? I mean the student in GF might also wanna use the clothes line or a grassy area to lie down, etc.

Give them their own & fence off the granny flat with its own yard. Keep it as separate as possible.

Has anyone come across these issues?

Yeah, a coupla times

How do you deal with them?

As above. And get a good PM who knows how to make it all work.

 

[Rolf Latham]

As above. And get a good PM who knows how to make it all work.

what, like put a granny into the granny and bunch of 19 year old Housemates into the main house

ta
rolf

 

[virgo]

Tenants

Hiya
I have 2 granny flats; the first one has a young family living in main house and a single lady in her late 30s (i think in the granny flat....they seem to get along fabulously...i think the single lady feels more "secure" at night knowing there is a family living nearby...

2nd one has 2 single men living in each one...one is single and one is divorced (both in their late 40s)..i know they share a beer with one another...they have been "together" for the past 7 years

 

[Propertunity]

what, like put a granny into the granny and bunch of 19 year old Housemates into the main house
ta
rolf

PMs that do this (and I know some) don't last too long with me

When I used to get calls from less experienced PMs, with applicants like this, I'd always ask if they were comfortable doing it - as they were the one that had to attend the Tribunal. That normally snapped 'em back into reality!

 

[DaveM]

Yeah matching tenants is important. Eg dont put a family with kids in the front house, with a night shift worker in the GF, so the kids in the yard playing don't disturb the daytime sleeping of the GF occupant.

Also depends on the area... in my suburb the houses with a GF in the backyard seem to come back onto the rental market regularly, so its obviously not for everyone. Conversely, the GF's almost never come up.

 

[jsoe]

thank you all.
As always, great to hear all perspectives.