Renting out a granny flat is easy if you get the necessary approvals, put up a rental listing and find the right tenants.
Renting out your granny flat is a great way to make some passive income, but you need to make sure you do things right. Here at Granny Flats WA, we have a wealth of experience in how to turn a granny flat into a financial asset.
How do you rent out your Granny Flat?
This is rather obvious, but if you don’t have a granny flat, your first step is going to be to build one. This is quite an undertaking in itself, and you can read about how to get started in our article here. While building is always a big task, Granny Flats WA takes care of the entire process, including all paperwork and council approvals.
If you already have a granny flat, your next step is to make sure you’re aware of the legal regulations you must abide by to rent it out. These will vary based on your local council, so make sure you learn the specifics of what’s required in your area. They can be things like keeping the granny flat within the size restrictions, maintaining a certain distance between the property and its fencing, and having separate utilities from the main property. If your granny flat doesn’t currently fit into the necessary parameters, then you might need to put some money and effort into renovating it so that it does.
Making A Rental Listing For Your Granny Flat
Once you’re sure that everything is approved and appropriate with your granny flat, then you can finally begin looking for tenants. The process is similar to how it would be with most other rentals. You can go through a property manager or rental company or do it yourself. If you are doing it yourself, you will need to research rental prices for properties with similar characteristics to yours and the general rental prices in your area.
You will then have to list everything you expect from a renter, including rental price, whether pets are allowed when the property becomes available etc. You will also need to think of an enticing description on the listing. This is where you can list what kind of tenant would be well-suited to the property, as well as the benefits to the rental that does not involve the actual living space. These benefits could be proximity to things like cafes, shops and parks or good public transport options in the area. Your listing will need pictures of the rental so use good lighting and a high-quality camera to make the pictures look enticing and clearly show the details of the property. Make sure to clarify whether the granny flat is attached or detached in your listing.
Alternatively, you may choose to rent out your granny flat short-term as an Airbnb.
Granny Flat Tenants
While there are obviously no restrictions around who is allowed to rent a granny flat, there are generally certain groups that tend to gravitate to them more often. Granny flats are small, affordable spaces, so renters are often couples or people who live alone and are not looking to live very lavishly. Students frequently rent granny flats as a cheaper alternative to other student housing available to them. Retirees may also rent granny flats if they are trying to downsize and don’t want to go to a nursing home. Couples may rent a granny flat if they are looking to save by paying less rent than at a house.
To ensure that you have a reliable tenant who will pay rent on time and take good care of your property, you will need to do a number of background checks. This will generally involve a rental history check to see if they have been a good tenant in the past, a criminal background check to find out if they are potentially dangerous or unreliable, and proof of income to ensure that they will be able to pay rent consistently. One thing to consider is that a granny flat rental situation is a bit different than a typical rental situation. There will likely be some element of cohabitation, so it’s worth taking that into account and having a clear idea of how that will work so that you can clearly lay that out to whoever is renting. This may also factor into how you decide on a tenant.
Final Thoughts
If you’re not planning to sell your property soon, then renting out your granny flat is a great idea. There are a lot of people looking for rentals right now, and it can be a good way to earn a decent, long-term income. If you don’t have a granny flat, it might be worth building one if you have a suitable property. That’s where we can help you. Contact us today to see if Granny Flats WA could help create your perfect custom-designed granny flat.
