8 Ways to Earn Additional Income from Your Granny Flat
With accommodation more in demand than ever these days, building a granny flat can be a great way to make some additional income by renting out the extra space. You may be wondering what’s involved in building the perfect granny flat to rent, what considerations do you need to take on board and what options do you have when it comes to making income through your new dwelling?
Well, if you’re wondering any of these questions, you’ve come to the right place.
Like a lot of things that seem simple on the surface, there is an art to renting out your granny flat, and if you go in blind, things can go pear-shaped quickly. However, with a little guidance, know-how and strategy, you’ll be able to earn additional income from your granny flat.
8 Ways to Earn Additional Income from Your Granny Flat
The first step in creating the ideal granny flat design is deciding what it is you want. For the purposes of making a rental income, do you envision renting to a single tenant or a few? Are you looking at long-term tenants or are you more interested in providing short-term stays to tourists?
Another way to approach this is to have a good look at your area, figure out what type of people would be looking to come there and work backwards. For example, do you live near the beach or popular tourist attractions?
Perhaps your best bet is to target the tourist market. If you’re close to public transport and within a reasonable driving distance of a CBD, you could attract a lot of interest from professionals if you play your cards right.
2. Stand out to tenants
Depending on where you’re located, tenants may be able to afford to be choosy, so consider ways to make your granny flat stand out from other options. Even small things like air-con, free wi-fi, a lovely garden, a stunning view, access to your pool or just your winning personality could be enough to give you the edge over competitors.
The key is being aware of your strengths and making sure your potential tenant notices these things.
3. Create a stylish space
Don’t underestimate the value of a stylish look and great design choices. There are so many old-fashioned, out of date granny flats on the market, so if your granny flat is modern, sleek, and abundant with natural light through open plan living, it’s going to really turn heads compared to its drab competitors.
Looking for inspiration? Your starting point is just a google search away. Research granny flat designs, see what’s popular, see what appeals to you (and, just as importantly, what doesn’t) and consider what will work with the design of your main dwelling.
Found some ideas but still not sure what’s best for you? At Granny Flat Solutions, we’ve got you covered! Granny flats are our speciality, and our friendly team are happy to offer advice on what will make your granny flat stand on the market.
4. Look into Airbnb
If you’re looking to rent out to tourists and travellers, an Airbnb may just be the option for you. A granny flat allows your guests to stay on your property while still having their own space.
Some added benefits of an Airbnb include:
- Meet a range of interesting people.
- More flexibility than with a permanent tenant. Whenever no one’s renting your granny flat, it’s for you to use however you like.
- For the financially savvy, there are tax benefits to renting out your granny flat as an Airbnb. Have a chat with your financial advisors to see if you’re able to benefit from this.
Before jumping into the Airbnb game, consider if it is the best use for a granny flat. Your local area is no doubt lovely, but is it the sort of place that will attract a lot of people looking for short-term accommodation? A little research and asking around can often quickly tell you if turning your granny flat into an Airbnb is a viable option for you
5. Consider renting to local university students
If you live near an educational facility, like a university, renting your granny flat to students could be a fantastic opportunity to make some extra rental income. Students are on the lookout for anywhere close to their university, so if this is you, you could be sitting on a goldmine.
Some of the benefits of renting to students include:
- Lots of applicants.
- Easy-going tenants.
- Potential for higher rent due to demand.
Possible cons to renting to students include:
- Can be messy and immature – for a lot of students, this will be their first time not living with a parent and there will be an adjustment period.
- High turnover.
- Some students prefer to party than study. Try to get to know your potential tenant to see if they’re a good fit. Being upfront with ground rules won’t hurt either.
6. Install a separate electricity metre
However you plan to rent out your granny flat, or any second dwelling, installing separate electricity will benefit both you and your new tenant.
Some of the benefits include:
- Avoid billing headaches, you and your tenants won’t have to try to figure out your electricity costs. Trying to split a single bill can feel overwhelming if not everyone agrees.
- A simple way to avoid any tension over being overbilled or not paying enough.
- In the interest of protecting the rights of your tenants, in some areas, it’s a legal requirement for you to install a separate electricity metre. As always, talk to a trusted contractor or the council about this if you’re unsure.
When it comes to installing a second metre, you’ll want to hire a qualified electrician or someone with the qualifications to do the job.
7. Research the market in your area
When deciding on your asking price, you should research what other prices are like in your area and adjust yours accordingly.
If you charge more, you’ll need to be able to justify it or be comfortable with tenants looking elsewhere (after all, they’ll have done their research too!)
8. Check local council regulations
Always check with your local council for approval or trusted expert before proceeding with any rental plans. It’s best to know what you can and can’t do before anything is put into motion rather than after. Sometimes dual occupancy will need approval, depending on where you live.
9. Hire a trustworthy team of granny flat builders
It just makes sense that if you’re going to generate income from your property, to get the best local granny flat builders for the job. We at Granny Flat Solutions know everything there is to know about granny flats and have over 35 years of experience in the Sydney area. We’ve got all the know-how you’ll need to take you from conception to construction to create your dream granny flat.
To get started on your granny flat or for any queries, get in touch by clicking here or call us at 1300 259 677.
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