Pros & cons of garden cottage rentals
Renting out a garden cottage within your property can be an enticing prospect for many homeowners. It offers the opportunity to earn extra income and utilize unused space. However, like any decision, there are both advantages and disadvantages to consider before taking the plunge into becoming a landlord on your property.“Renting out a garden cottage or separate section of your home is not just about earning extra income; it's about unlocking the hidden potential within your property. Especially now that interest rates are as high as they are, the extra income can make it much easier to afford your home loan repayments,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
Before going through with this decision, Goslett advises homeowners to carefully consider the downsides before allowing a tenant to share the property with you. “While renting out a portion of your home can have many financial benefits, homeowners need to make sure they are also okay with the lifestyle changes this decision might bring about,” he cautions.
For example, sharing a property with a tenant might mean that there will be compromises on privacy.
Sacrifice
“Sharing the same garden space with a tenant inevitably means sacrificing some degree of privacy. Homeowners may find it challenging to maintain boundaries and personal space, especially if the tenant is overly intrusive or disruptive. If possible, adding fences and shrubbery can help to create greater separation,” says Goslett.
Dealing with problematic tenants can be another major headache for homeowners and can become even more awkward when the tenant lives on the same property as the landlord. “Issues such as late rent payments, property damage, or conflicts around late night parties and other disruptive behaviours can strain the relationship between the homeowner and tenant. That’s why it’s always beneficial to work through a rental agent who can act as the mediator between the landlord and the tenant,” he recommends.
On the upside, Goslett mentions that having someone else living on the same property can enhance security, especially if the homeowner frequently travels or leaves the property unoccupied for extended periods. A tenant's presence can deter burglars and provide peace of mind.
“Renting out a garden cottage or portion of your property can be a lucrative venture that offers many financial benefits. However, it also entails risks and challenges that homeowners must carefully consider before proceeding. To better understand these challenges, I recommend setting up a meeting with a RE/MAX rental agent for some free advice and guidance,” Goslett concludes.