The granny flat is growing in popularity as a cost-effective, income-producing investment.
Relatively inexpensive to install and often positively geared from day one, a granny flat can be a low-stress, low maintenance investment option – if you manage it well.
Before you begin to build, consider these tips for living harmoniously with tenants in your backyard.
The more compatible your tenants, the more harmonious your living arrangements will be. Tailor what you offer to the type of tenant you’d like. Modern décor and a high-speed wifi connection may appeal to a young professional couple, while a retiree might like a pet-friendly rental with a garden to tend to. Screening and selecting a tenant you’re sure to get along with is the first step to a harmonious landlord/tenant relationship.
Use landscaping or a small fence to create a sense of separation and privacy. Your tenants will appreciate it, and so will you.
Spell out all conditions and expectations in a clear, detailed lease agreement. This should cover bond details, the rent collection process, notice periods, tenant expectations, landlord expectations and what happens at the end of the lease. Don’t leave any “grey areas” that could cause confusion or disputes.
Effective communication is vital when managing tenants. Always be clear, courteous and respectful, and expect the same from your tenant. A landlord/tenant relationship is essentially a business arrangement. Be professional, communicate clearly and keep your emotions in check.
A rental agent will deal with any issues that arise, which means you won’t have to. As an added bonus, agent fees and commissions are tax deductable.
Landlord insurance is a must, even if you know your tenants well. Landlord insurance will cover unintentional damage, unplanned vacancies and expenses relating to re-letting your property. You and your tenant can get on with living harmoniously, knowing you’ll be ok, no matter what happens.