Build self-contained flat at investment property for weekend getaway

Falconjack on 18/01/2021 - 22:51

Hi, I'm thinking of buying a property with house and land on the Sunny Coast or Gold Coast and leasing it out.
At the back of the place, I am hoping to build a self-contained flat (either as a separate Granny flat, or attached to the main building). I would like to exclude this flat and a small portion of the backyard from the lease of the main residence, so that I can use it for myself as a weekend getaway or for Air BnB.
Is this possible or are there some legal hurdles I'll need to overcome?
If it was possible, what independent connections would I need to get to separate the bills from the main residence?
All tips welcome, TIA :)

Home & Garden

Comments

  • stewy on 18/01/2021 - 23:21
    +10

    Is this possible or are there some legal hurdles I'll need to overcome?

    How many tenants do you think want the LL nosing about regularly or having to put up with AirBNB in their backyard?

    • Logical on 18/01/2021 - 23:49
      +2

      If it is fenced off and resembles a 'separate lot' then shouldn't be a major problem for the Lessee of the main property. The OP hasn't specified how big the block of land would be…..

  • Logical on 19/01/2021 - 00:08
    +1

    Few options:
    1. subdivide and treat as 2 separate lots with their own water and power meters… therefore separate rates and all bills etc
    2. have the granny flat for personal use only and have it off-grid if possible eg own power source through solar panels and battery storage, tank water for toilets and/or offer eg a $20 rebate per week to use main dwellings' power and water source
    3. If keep as one lot and use granny flat for Air BnB then you may need town planning approval to incorporate dual living on the one lot

    • Falconjack on 19/01/2021 - 00:36
      +1

      Thanks man, "dual living" was what I was looking for!

  • AustriaBargain on 19/01/2021 - 00:11
    +4

    I would never rent a place to live where the landlord lives in a little room at the back. And I'd feel annoyed if that fact was hidden from me when I signed a lease, lied to. The lease would say the landlord's address is across town and then suddenly you're just like always around? Can't even smoke a j in your own backyard.

    Why don't you just rent a granny flat off someone else, so the people attached to the house are strangers to you. And you rent the granny flat you build out to someone other stranger to help pay for the granny flat you're renting for yourself. Living next to strangers is priceless.

  • figarow on 19/01/2021 - 00:28
    +1

    As Logical mentioned I would separate with fence and make it an off grid cabin. You will need to follow council regs if even allowed.

    landlord lives in a little room at the back
    Can't even smoke a j in your own backyard

    lol gold

    • May4th on 19/01/2021 - 01:57
      +1

      i'd rather my tenant smoke a joint rather than cigarettes!

  • Meho2026 on 19/01/2021 - 04:15

    There’s a few companies that build dual occupancy homes like this https://keibuildhomes.com.au/home-design/macquarie-254/

  • spal on 19/01/2021 - 07:43
    +1

    I would ask a question to myself. Why do I need dual living. Is it for me to use it as a free holiday home. Then, isn’t it better to save all the time and money and holiday anywhere else you wish. Dual living setup isn’t cheap and easy project. It would justify probably if you are looking at earning regular income, and use it once off for self. Also, not done properly can create more issues and might decrease appeal for the other property too. No tenant would want to live near air bnb property.

  • mskeggs on 19/01/2021 - 07:47

    If you need to borrow money to do this, the tax arrangements will be quite complex.

  • slow on 19/01/2021 - 08:32
    +1

    Having a holiday house is vastly over rated.

    Much easier and cheaper to just pay to stay somewhere when you need to visit

    Been there, done that

    • Logical on 19/01/2021 - 23:49

      Not if you are there every weekend or every second weekend….. The advantages are that you can have your clothes there, kitchen untensils, whitegoods etc….. then after work on Friday you just drive there as you please and can start to wind down and enjoy life…. especially if at the beach…

  • lunchbox99 on 19/01/2021 - 09:21

    I would imagine it would have to be specifically mentioned in the lease and possibly a separate dwelling/lot because the tenant has a legal right to quiet enjoyment of the leased property and there are permitted rules of entry.

    Having a granny flat out back where the landlord can pop in unannounced and/or uninvited would seem to be contrary to quiet enjoyment and probably violates permitted rules of entry.

    • whooah1979 on 19/01/2021 - 09:49

      Granny flats are quite popular in Sydney where land is expensive. The owner usually rent out the main dwelling or the flat while they live/use the other as they please. Those that have a PPOR rent out both.

      • lunchbox99 on 19/01/2021 - 09:51

        Yes but in those situations is the tenant technically leasing the property, or just renting in share accommodation? I've never done it so I have no idea.

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