Rent as a whole or the flat separate?

Hi all,

I am after some advice in regards to the best rental outcome. We have just purchased our potential PPOR which we cant live in for about 3+ years. The idea was to rent it our negatively geared to help with tax and move back in and renovate for the family home.
I may as well just put all the figures in to help.
The purchase price was $755,000 LVR 80%
It is advertised for $725/week as the whole house.
The property manager is suggesting renting out the house and the flat separately for $200/week and the house for $600 per week.

Clearly financially the separate rental would be slightly more money but i have concerns over two tenants sharing the same space and have specified i would want at least a 2 year lease to go this way.

The house is 205m2 4 bed, ensuite and rumpus with a large brick courtyard (no garden)
The flat is under the main house 60m2 with a bathroom kitchen, open plan and small courtyard area out the front. It has its own entry. I was advised the previous owners rented the flat at one stage for $320 per week.

Tenants would share the garage and driveway.

The house is on a steep block and even the flat downstairs has amazing views but I am just not sure it is worth the hassle of having two separate tenants for the property despite potential getting upwards of $100 per week more in rent.

Any advice?

 

Unless each property is separately metered/submetered (gas, water, electricity) you will be paying all utilities, so the 'additional rent' may be negligible if they don't pay for services. Eg A/C 24/7

 

Thanks Scott No Mates, i was wondering how that would work. I'm pretty sure they are not separate and there is a reverse cycle air con down there too

 

Hi dmb1978

As an agent I have had a couple of properties in the past where landlords have wanted to rent out the downstairs of the house or a granny flat separately. I tend to try and talk landlords around this option as they are generally much harder to lease. I find prospective tenants are very cautious about who is living in such close proximity to them etc and the privacy just isn't the same. Personally if I was looking to rent a 4 bedroom home - I wouldn't even inspect a property where someone was living downstairs - that is just my personal opinion though ;-)

Jodi

 

Thanks Jodi, I agree - we won't be going down this path.