Hello,
I hope this is the right forum for my question.
I have a question about accessory apartments: Is a converted attic with various rooms and a bathroom but no kitchen automatically considered an accessory apartment? In theory, the entire area could be locked and is accessible via the main entrance, hallway, and stairs. However, from the hallway on the ground floor, you can access all rooms on the ground floor, meaning the upper area could be locked, but the ground floor area would be accessible to everyone, including potential tenants of the upper rooms. This may not be ideal from the landlord’s perspective. Additionally, separate billing for electricity and water would not be possible.
Another question: in the basement, there are various rooms, including a kitchen, a bedroom, and a bathroom, but these are not connected as a standalone unit and cannot be locked off. Can this be classified as an accessory apartment?
I am less concerned with the potential rental of these spaces and more interested in whether they would be considered accessory apartments.
I hope this is the right forum for my question.
I have a question about accessory apartments: Is a converted attic with various rooms and a bathroom but no kitchen automatically considered an accessory apartment? In theory, the entire area could be locked and is accessible via the main entrance, hallway, and stairs. However, from the hallway on the ground floor, you can access all rooms on the ground floor, meaning the upper area could be locked, but the ground floor area would be accessible to everyone, including potential tenants of the upper rooms. This may not be ideal from the landlord’s perspective. Additionally, separate billing for electricity and water would not be possible.
Another question: in the basement, there are various rooms, including a kitchen, a bedroom, and a bathroom, but these are not connected as a standalone unit and cannot be locked off. Can this be classified as an accessory apartment?
I am less concerned with the potential rental of these spaces and more interested in whether they would be considered accessory apartments.
Does the value of the house increase because of the potential rental unit?
To keep it brief, it’s about a single-family house that has always been a single-family house, never rented out with a "granny flat" or separate unit, and now, after an inheritance, it’s suddenly supposed to be worth much more because of this "granny flat."
To keep it brief, it’s about a single-family house that has always been a single-family house, never rented out with a "granny flat" or separate unit, and now, after an inheritance, it’s suddenly supposed to be worth much more because of this "granny flat."
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nordanney16 Apr 2019 22:57Calli47 schrieb:
Does the value of the house not increase due to the potential rental income? No, the value of the house is now divided between two separate units. Previously, a house with 200m² (2150 sq ft) of living space rented out at €10 per m² would generate €2000 monthly rent.
With a secondary apartment included, the total living space is still 200m², with 160m² rented at €10 and 40m² also at €10, totaling €2000 monthly rent.
Which house is worth more? Maybe this example helps you.
Of course, it might currently be attractive for buyers to purchase a slightly larger house with a rentable unit, as the rental income can cover a larger portion of the financing costs given current interest rates. But that’s about it.
If you build a house with 200m² of living space, you spend money on 200m² (with a proper secondary apartment costing a bit more due to a second bathroom, slightly different electrical setup, etc. - but not significantly). So why should the house with a secondary unit suddenly be worth so much more than the same house occupied by a single household?
Calli47 schrieb:
I am less concerned about the potential rental of these spaces and more interested in whether they would be considered accessory apartments.And is renting out individual separate rooms considered a hotel or guesthouse?
200 m² (2,150 sq ft) is still 200 m² (2,150 sq ft).
Since an accessory apartment within the main house does not legally have to be fully separate (unlike a two-family house), the attic could likely be rented out as an accessory apartment. However, this does not make the house more attractive or valuable, since it is not an independent dwelling unit. Such accessory apartments are no longer in high demand. A full kitchen is not required there—a gas cooker is sufficient. But who would want that?
A basement, meaning a standard lockable cellar, must first meet the legal definition and case law requirements for living space. Even then, it is questionable whether a modest rental income would increase the property’s value.
It does not seem so.
One reason against a small value-adding rental is the feeling of not being alone in the house, as @nordanney also mentions.
Yes, and then there is the target group for this attic space (I am disregarding the basement here): someone who cannot afford anything else and is fine with a gas cooker and washing dishes in the shower is unlikely to increase the house’s value.
nordanney schrieb:
No, the value of the house is now divided between two units. Previously, a house with 200 sqm (2,150 sq ft) of living space rented out at 10€ per sqm = 2,000€ monthly.
With a granny flat, also 200 sqm (2,150 sq ft) of living space = renting 160 sqm (1,720 sq ft) at 10€ and 40 sqm (430 sq ft) at 10€ = 2,000€ monthly.
Which house is worth more? Maybe this example helps you.Well, the rental pricing is a bit more complex. You can’t rent a 200 sqm (2,150 sq ft) apartment at the same price per square meter as a 150 sqm (1,615 sq ft) apartment, or vice versa. The principle of diminishing marginal utility applies here. At the same time, the granny flat can have either a positive or negative effect. In my opinion, its rental potential will definitely have a positive impact on a bank’s willingness to approve a mortgage.Ultimately, this is a very individual assessment that largely depends on how your local housing market works: Some people say, “Oh wow, with this apartment I can pay off the house more easily.” On the other hand, there are buyers who say, “Uh no, I’m buying a house so I don’t have a stranger living with me.”
To add something to the original question: I would only advertise the unit as an apartment if it actually comes close to a fully functional one. This is definitely not the case in a basement. In the attic, it might be possible by installing a kitchenette. Whether it can then be rented out profitably depends, again, on how well the unit’s features match the demand in your local housing market.
Example from the Rhine-Main / Greater Frankfurt area: Here you can make a lot of money even with a sparsely furnished studio room with a kitchenette. In regions with less housing shortage and lower willingness to pay, the situation might look different.
Thank you all for your responses; they have already been very helpful.
As I mentioned, my goal is not to increase the value of the house, nor do I intend to rent out the "secondary apartment." Rather, I am looking to gather arguments to demonstrate that it is not a secondary apartment as the opposing party claims, which they argue significantly raises the value of the property.
No landlord with a reasonable mindset would rent out these rooms, as their own living areas and all valuables would be easily accessible. Not to mention the loss of privacy that would result.
If this apartment had a completely separate entrance, would it then be considered a two-family house regardless of the size of the apartment?
As I mentioned, my goal is not to increase the value of the house, nor do I intend to rent out the "secondary apartment." Rather, I am looking to gather arguments to demonstrate that it is not a secondary apartment as the opposing party claims, which they argue significantly raises the value of the property.
No landlord with a reasonable mindset would rent out these rooms, as their own living areas and all valuables would be easily accessible. Not to mention the loss of privacy that would result.
If this apartment had a completely separate entrance, would it then be considered a two-family house regardless of the size of the apartment?
Since I have recently started exploring the property market (no, I am not a real estate agent or anything like that), I can share that among appraisers, it is generally assumed that a house with a granny flat or secondary suite is worth about 10% less compared to a house without one, all other conditions being equal. However, the fact is that individual cases can vary significantly!
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