Most people are already well aware of the value that building a garden room can add to a property. However, more and more people are now taking advantage of the growing holiday rental market (with the likes of Airbnb making it possible for almost anyone to let a holiday property), and are now building garden rooms or annexes to rent out. This is a clever way to add value to your home, whilst using the money earned to pay for your investment.
Here are the top 5 reasons why building a garden room for holiday lettings is a great decision for your property, and your bank account…!
- It’s the perfect set-up for both yourself and potential guests
Situated at the bottom of your garden, a separate dwelling provides both you and your guests with the privacy you need, whilst allowing you to be close enough to be on hand should they need any assistance.
By including a kitchenette and wet room (plus any other facilities your guests may need such as internet connection), there’s no reason for your guests to need access to your house at all. And, if your property has side access to your garden, this could be used as a guest entrance, so your household space is kept totally private. You can even have a key safety box installed so they can check themselves in and out without the need for you to be home.
If you live in a popular city, area of natural beauty or tourist hotspot, you can make the most of marketing your garden annex in a prime location, and allow your rental rate to reflect this.
- Rent-a-room tax free allowance has risen to £7,500!
By signing up to the rent-a-room scheme, you not only make money on your rental, but you are also eligible to earn up to £7,500 per year, tax free.
Remember, before you decide to proceed that being part of the scheme means that you are not able to claim any expenses related to the letting. You should therefore make sure that you do some calculations beforehand on any possible maintenance and general upkeep that may be required, to check whether you’d be better-off financially in or out of the scheme. Read more about the pros and cons of the scheme, and the eligibility criteria.
Before you take a lodger in, you should always check with your mortgage provider and home insurer to make sure that you are keeping within the terms of any existing contracts. If you rent, you’ll also need to check that your lease allows you to take on a lodger.
- It couldn’t be easier to use a third party to promote and protect your property
Third party websites such as Airbnb make it easy to list, manage and protect your property, and make setting-up as a holiday let an simple and low risk process.
Airbnb for example will list your property for free, giving you a suite of tools and advice along the way to make sure you’re pricing, promoting and marketing your property in the best way possible. You can set your own price, and the terms of your let can be totally flexible depending on your set-up – varying from having plenty of interaction with your guests during their stay, to almost none!
Payment is also managed by them (with a 3% service fee from your rentals going to them for the service) and they will also provide the insurances and guarantees to make sure that your property is protected. Read more about how Airbnb work and the terms of their agreements.
- Your garden room pays for itself!
With the current financial climate, more and more people are deciding against moving to a new house, and are instead looking at ways to add value and space to their current home. Investments such as garden rooms can be an excellent way to add a highly functional space to your home, but naturally they come with some upfront investment.
By renting out your garden room, you may be able to cover the cost of your investment with the money you earn, whilst being able to enjoy all the benefits of having your very own garden room when you don’t have lodgers (which you can manage via your Airbnb account, so that you can make sure it’s available when you need it too!).
The result: you gain a fantastic home improvement which will add value to your home and enrich the lifestyle of you and your family, whilst earning you money. What’s not to like!?
- Let eDEN’s experience guide you through your project
As an ‘independent separate dwelling’ that is to be let out to people outside of your main household dependency, it is likely that you will need to obtain planning permission in line with government guidelines.
Here at eDEN Garden Rooms, we have over 10 years’ experience in building garden rooms of all kinds, and therefore can provide helpful planning tips and information for your project. We also provide a Planning Administration Service, which is available at a fee. As we are garden room experts, not planning consultants, we would always recommend that clients seek independent planning advice to ensure that the project adheres to all requirements.
As your new guest annex will be used for overnight accommodation, you will also require full building regulations. eDEN can work with you and a building control engineer to ensure the building complies to the regulations required.
Another consideration that you may need to take into account is that the local authority may require you to sign a 106 legal document preventing the room being rented commercially (i.e. as an office space) or sold as a separate dwelling. There can also be implications in terms of capital gains tax if you wish to sell your home and it is seen as a commercial property, so it’s important that you make sure all your paperwork is in place.
From plumbing requirements, to internet connection, to landscaping, the team here at eDEN can advise and help you along the way to create a beautiful and practical bespoke garden room that fits the needs of you and your guests perfectly.
If you’re thinking about building a garden annex to rent out as a holiday let, get in touch with our friendly team today to discuss your project and request a brochure on 0800 0935 339 or email email@example.com