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Granny Flat - issues renting?

Discussion in 'Property Management' started by BelezaPura, 30th Jun, 2015.

  1. BelezaPura

    BelezaPura New Member

    Joined:
    18th Jun, 2015
    Posts:
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    Location:
    Northern Beaches, Sydney
    I have a house in Western Sydney (2770) and am torn between selling the house to pocket the gains before the music stops and building a granny flat to increase the cash flow to help with serviceability.

    I've asked my property manager about the demand for granny flats in the area and, in her reply, she pointed this out...

    "Extra income on the same property is definitely a pro and ensuring that the tenants are suited to one another may be a con."

    Wondering if you have any information to share regarding the highlighted above. What sort of issues have you found trying to lease a granny flat?
    Any issues with tenants not getting along and being too close to each other?
    In your experience, it is harder to rent a house AND a granny flat?

    This is not the main consideration when deciding whether to sell or not, but it would be good to understand what I am getting myself into before committing.

    Thanks!
     
  2. Biz

    Biz Well-Known Member

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    1,911
    Location:
    Sydney
    Would you worry about tenants getting along if you were buying a townhouse or an apartment?
     
  3. Tonibell

    Tonibell Well-Known Member

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    18th Jun, 2015
    Posts:
    530
    Location:
    Sydney
    It is all in the design - you need to provide separation and privacy.

    Read some the articles at grannyflatapprovals.com.au
     
    Kael likes this.
  4. Kael

    Kael Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    277
    Location:
    Sydney, NSW
    +1 that.

    My Mum inherited a property that has a granny flat in the backyard. Was an old garage, that was converted into a granny flat. On most occasions, the tenants got on nicely, even with the close proximity to the house; however, there was one instance where the tenant in the main house (who was a great tenant) moved out, giving the reason that the new tenant in the granny flat was giving them too much grief. Mum then finally decided to put up some fences to make some clear boundaries and make things a bit more private.

    At the end of the day, the design and privacy is key, but so are finding the right tenants. Make sure that your open and honest with the tenants in both the house and the granny flat when you're renting the other out. Can go a long way.
     
  5. BelezaPura

    BelezaPura New Member

    Joined:
    18th Jun, 2015
    Posts:
    4
    Location:
    Northern Beaches, Sydney
    No I wouldn't. But that is the point of my question. A real estate agent would not raise a point about neighbours getting along if it is a townhouse or apartment. That is why I thought, maybe there is a difference when granny flats are involved. What I am trying to find out if whether the risk of having a granny flat empty is greater than your average house and what can be done to mitigate this risk.

    Yep, great tips there.