Rent a Room - Garage Conversion

letsbetfair

A garage conversion to the standard where someone will want to live there won't be cheap. If they don't have proper kitchen facilities you're limiting your market to someone who'll be happy to live without these (which may increase the odds of problem lodgers/tenants) and it may also mean people don't want to stay there longer term. You mention 40sq m - I was in a slightly smaller serviced apartment the other week...lovely conversion of an old building to a high standard, great place for a short break, but no way I'd want to live there!
What you're planning as a conversion sounds like it might actually work better for an Airbnb, if you're in a good area for these. There might be planning issues, though, and it's a really high risk time to get into this!

itssmallstuff

Hello
Clearly, I did not explain myself well. It has been my understanding that
1. Self contained = tenancy = trouble with council
2. Bed+ bath  = loger = rent a room
This is way, I choose #2. Not to avoid tax!
From what I now gather, the below is also an option?
3. Bed + bath + portable kitchen = tenancy = no/less trouble with council?
I did check with one local estate agent to validate impact to value of property etc. His option was in favour. I'll check with another one to be sure.
4. I will only go ahead if this makes commercial sense. Otherwise, I am sure there will be other investment opportunities.
5. I'll also check how hard/easy it would be to find a suitable tenant before spending a dime.

Thank you all very much. It's been a good learning experience and your advise is 100% well received.

ciderboy2009

itssmallstuff said:

I did check with one local estate agent to validate impact to value of property etc. His option was in favour. I'll check with another one to be sure.

Bear in mind the old saying that you can tell when an estate agent is lying because their lips are moving.

itssmallstuff

ciderboy2009 said:

itssmallstuff said:

I did check with one local estate agent to validate impact to value of property etc. His option was in favour. I'll check with another one to be sure.

Bear in mind the old saying that you can tell when an estate agent is lying because their lips are moving.

  
I'll do some research!

Mojisola

itssmallstuff said:

2. Bed+ bath  = loger = rent a room
This is way, I choose #2. Not to avoid tax. 

A lodger would also share the living space with the landlord which you don't want. 

[Deleted User]

Tedber said:

Not sure how I stumbled onto this thread but interesting.   I can disagree somewhat with others itssmallstuff as one of my neighbours has done pretty much what you are thinking of i.e. converted large garage for use.   They have put a shower room and toilet,  partitioned in half so there is a small area for bed and the second area as a kind of sitting room with a sink unit.  No full size cooker but they have a combi microwave, and some sort of other thing that dry frys stuff plus toaster, washing machine etc.   It is compact but lovely and the person living there loves it (got patio doors onto garden)     There is a door leading into the house but this is kept locked.

The only problem I would envisage is you have to get the right person and that can prove tricky.   Also a massive space like yours could work out like £2,000+ a square metre.   Not cheap.  But you will have done your sums.   Good luck with whatever you decide.   Not sure I would want the hassle unless it was for an elderly parent/adult child to be honest.

The OP can't make the garage conversion fully contained though unless (s)he lets it to family.  That's why this not-quite-a-self-contained-annexe is being suggested.

[Deleted User]

itssmallstuff said:

Hello
Clearly, I did not explain myself well. It has been my understanding that
1. Self contained = tenancy = trouble with council
2. Bed+ bath  = loger = rent a room
This is way, I choose #2. Not to avoid tax!
From what I now gather, the below is also an option?
3. Bed + bath + portable kitchen = tenancy = no/less trouble with council?
I did check with one local estate agent to validate impact to value of property etc. His option was in favour. I'll check with another one to be sure.
4. I will only go ahead if this makes commercial sense. Otherwise, I am sure there will be other investment opportunities.
5. I'll also check how hard/easy it would be to find a suitable tenant before spending a dime.

Thank you all very much. It's been a good learning experience and your advise is 100% well received.

I understand why you can't make it a fully self-contained annexe.  I also understand that you don't want to share your home with an actual lodger for which you could make use of the rent a room scheme.  Instead you've come up with some in between solution that sounds worse as an investment then simply having a proper lodger and/or investing your money in something else.

steve866

I’m going to go against the grain here. I think the idea could work, depending on your location and the rental market in your area. There are lots of people that would equally not want to use your living room as a tenet. 

If I was searching for somewhere to live and my only option was a room in a house share, or what you are offering (assuming a comparable one bed flat/studio is more expensive?) then I would pick up your offering.

itssmallstuff

Lover_of_Lycra said:

itssmallstuff said:

Hello
Clearly, I did not explain myself well. It has been my understanding that
1. Self contained = tenancy = trouble with council
2. Bed+ bath  = loger = rent a room
This is way, I choose #2. Not to avoid tax!
From what I now gather, the below is also an option?
3. Bed + bath + portable kitchen = tenancy = no/less trouble with council?
I did check with one local estate agent to validate impact to value of property etc. His option was in favour. I'll check with another one to be sure.
4. I will only go ahead if this makes commercial sense. Otherwise, I am sure there will be other investment opportunities.
5. I'll also check how hard/easy it would be to find a suitable tenant before spending a dime.

Thank you all very much. It's been a good learning experience and your advise is 100% well received.

I understand why you can't make it a fully self-contained annexe.  I also understand that you don't want to share your home with an actual lodger for which you could make use of the rent a room scheme.  Instead you've come up with some in between solution that sounds worse as an investment then simply having a proper lodger and/or investing your money in something else.

Thanks ! 
Having a lodger requires a family to change and accomodate a new adult into their life. This isn't so straight forward and easy for some! While there are tax benefits of doing so, it's not my intention to save tax.
This conversion will add 1 ensuite bed, 1 living to the property. How they are used is upto the occupiers. In this case, it would be used as 1 bed and a utility (gym+ portable kitchen etc.). The utility can be joined to the main kitchen at a later date if required (just mentioning as a possibility). The utility could also become a home office for some. There are many options...
This has been a good exercise to evaluate the option and your opinions are greatly received.
Like I mentioned, I will not do it unless I'm fully convinced it makes commercial sense. 
Regards!

unforeseen

Including a kitchen, even portable, changes this into a tenancy which the council won't allow. 

You don't seem to understand that without using facilities in the main house such as kitchen and living room then this is a non starter for lodgers. It would be like living in a very small hotel room for an extended period - nobody who is seriously looking for lodgings for a long period (> 1 month) would be interested.

What you are wanting to set up is a  B&B without the the second B. And even a B&B normally provides a residents lounge.