Hi there guys,
I’ve been looking at possibly purchasing a property with a Granny Flat/Bungalow in the backyard. The 2 BR flat has a shower and a toilet but doesn’t have a kitchenette so if I could fit out a small kitchen sink and oven it would be self containing and liveable.
-The water and electricity is run directly from the house and hasn’t got it’s own meter(s), so how would I go about sorting out they’re bills etc?
-Does the bungalow have to be fenced off completely from the home?
-Does it have to have it’s own carpark area?
-Do the tenants in the family home have to agree to some sort of contract or setup to have the bungalow tenanted?
-Anything else I may have missed here to anyones knowledge?It is out the back of a 3 Bedroom family home, and is close to a UNI and Hospital so I believe I would be able to entice a single student or nurse to rent it out with a little upgrading!
Thankyou in advance guys
-Brendon
Surely someone has something to add to this post?
HI there,
The property is located in Rural Victoria.
-The water and electricity is run directly from the house and hasn't got it's own meter(s), so how would I go about sorting out they're bills etc?
A. Install a water meter;
B. Add and agreed amount to the rent each week as a defined figure-Does the bungalow have to be fenced off completely from the home?
No but that would depend on if you or they have pets or kids that wonder into their private space (which you both need)-Does it have to have it's own carpark area?
No but preferable-Do the tenants in the family home have to agree to some sort of contract or setup to have the bungalow tenanted?
No, you set out a defined area that they are renting and set out physical markers (a wire/colourbond fence is good).-Anything else I may have missed here to anyones knowledge?
You need to incluse a clause in both contracts that set out the requirement for silence and quite enjoyment plus designated parking spaces and the consequences for breaching these terms. It will be a major hassel for the tenant if the other tenant or their guests park in the wrong areas.Check to see that it's a legal granny flat.
Check with your insurance to see if you are covered. If it's not legal then of course you won't be.
If you have rented the house then suddenly put someone in the granny flat the existing tenants have something to complain about.
There can be problems with shared areas. Better if they are defined.The rent could include electricity if you don't want to meter it.
How would I find out if the granny flat is legal or not? There isn’t any plans on the section 32 of the property.
-Brendon
Go and see with the local council; speak with the town planner and get a copy of the approved dwellings/buildings on the property. I would keep the info with regards to a granny flat to yourself for the time being; just ask to see the building approvals; they will tell you what the buildings are listed as (garage, flat, shed, granny flat etc)
You can always purchase the property with 'vacant possession' or wait until the end of the lease period then either terminate the lease or amend the area of the lease available for the people in the main house (while keeping the lease payments at the same level or increasing them as the market allows) then install the 2nd tenants; all creating additional cash flow.Hi
Does anyone know which insurance company will cover for the granny flat and also the front house?
And whether they would cover both granny flat and front house if there are two separate lease? or they only accept one lease??
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