Renting Garage Annexe

MaxiMoneySaverTom

I have the crazy idea of converting my integral garage into a studio and renting this out to generate income. But is it worth the faff? 

We’d want to separate the entry from the house, (possibly by dividing our small hall with two lockable doors internally (our house & the flat).

I understand we wouldn’t be eligible for the £7,500 rent a room scheme as we wouldn’t be sharing living spaces, am I right? Is it just normal income tax or would be set up a business somehow?

Not too sure where to start! Any advice?  

Thanks

FreeBear

MaxiMoneySaverTom said:

I have the crazy idea of converting my integral garage into a studio and renting this out to generate income. But is it worth the faff? 

We’d want to separate the entry from the house, (possibly by dividing our small hall with two lockable doors internally (our house & the flat).

I understand we wouldn’t be eligible for the £7,500 rent a room scheme as we wouldn’t be sharing living spaces, am I right? Is it just normal income tax or would be set up a business somehow?

Not too sure where to start! Any advice?  

Thanks

If it is self contained, you wouldn't qualify for Rent a Room allowance. If it has a separate entrance you may find it subject to its own council tax banding.

You will need Building Control approval for the conversion and any ancillary work. It may also need planning approval.

Before renting the space out, you will need EPC, Gas Safe certificate (if any gas appliances fitted - And that may include a gas boiler your side of the wall), and an EICR. On top of that, you'll have a ton of paperwork to submit to HMRC each year.. You also need to get some training on being a landlord - There is a bunch of legislation you need to comply with, and if things go pear shaped, you could find it difficult to evict a tenant.

user1977

How practical is it to convert it into a space which anybody would want to rent (things like plumbing and/or adding in sufficient ventilation/windows may be tricky), and what's the market like for such places?

Do you have a mortgage? You'd need consent from your lender, if not for the works then certainly for renting. And they may well not like it.

Also bear in mind that when you come to sell then buyers may have trouble with the mortgageability, as lenders won't be keen on a property which comprises two units.

secla

Also what would the income be from ? if its a single garage once its been insulated/boarded out its going to be a relatively small space. 

ThisIsWeird

A self contained studio from an integral garage? Bedsit, kitchen, toilet-shower. Just about doable, I guess.
When does an en-suite bedroom-with-sofa become a self-contained studio? There will be a legal/reg answer to this; is it when a kettle is added? No. A microwave too? Or a wee hob? Hmm, probably. 
Anyone know?! 
Too dodgy to entertain such a thing?

elsien

Another option, depending on your location, is to rent out for short stays. If that is financially viable.
I stayed in one in Cambridge once via booking.com -  Advertised as a self-contained annexe, it was indeed a converted garage It was fine for one night - it was well thought out - but I wouldn’t have wanted to be there much longer than that. Once you’d got the double bed and the ensuite in, there was barely room to walk around and You couldn’t have fitted a washing machine etc in. I don’t know where you would put your clothes if you were living there. 
It was also only accessible from outside the main property. 

theartfullodger

As it is part of your home where you live (? Please confirm and that this is England) it CANNOT be an Assured tenancy - therefore also can't be an AST.  So deposit protection, GSC etc etc not required (but perhaps sensible).

See Thatcher's (never a fan ) 1988 Housing Act

https://www.legislation.gov.uk/ukpga/1988/50/schedule/1/part/I/crossheading/resident-landlords

Likely local agents, tenants and possibly solicitors won't realise this...

Done ANY training in being a landlord and landlord/tenant law,

user1977

theartfullodger said:

As it is part of your home where you live,

I think the OP is talking about making it self-contained, so no, it will no longer be part of their home.

theartfullodger

Read the Act - it says if the place is part of the building - except purpose built flats - then it CANNOT be an AT -thus also not an AST.

Self contained ain't relevant.

user1977

theartfullodger said:

Read the Act - it says if the place is part of the building - except purpose built flats - then it CANNOT be an AT -thus also not an AST.

Self contained ain't relevant.

I take it back. Such strange laws the English have!

theartfullodger

'twas thatcher...