I am considering to build a granny flat and wondering if this is a profitable idea and how easy it is to find good tenant.
I live in south side of Sydney, near Kogarah. I may be able to get $400-$450 pw for $120k cost. This is for 60m2 size.
My main considerations are:
- How easy it is to find good tenant, since we will be sharing our space. I also have a teenage daughter.
- Access to granny flat will be from the side of the house which is quite narrow (0.9m) and long (30m+). Would tenant mind this much?
- Preferably there will be a fence to separate our backyard and the granny flat entrance, for our privacy. This means the area for the granny flat, including external is around 100m2.
- Our backyard will become much smaller, with the distance between our outdoor area to the fence will likely to be only 3m. It is likely to block a lot of sunlight. Note that we don't particularly like gardening anyway.
As I understand it, renting out granny flat isn't as easy as renting out an apartment. It is often need to be self managed. The tenant know their landlord, and where they live, etc. How could we give them notice to vacate, for example?
I'm keen to hear this community thoughts.