Convert garage to 2 apartments?

theguzman

An interesting idea has emerged to me after I stayed in a very nice Airbnb recently.

I have a rural house with a large separate garage that my father built in the late eighties for storage of turf, timber and storing the car. It is 6.7m X 9.7m (22ft X 32ft).

There is space for either a spacious 2 bedroom apartment or else 2 one bedroom apartments within the garage. Luckily enough it was built to modern standards with a twin block cavity and proper damp proofing also, it has a cladding roof which would need to be removed and build up the gables walls for a proper slate or tile roof. It has the makings of a lovely rental income and I am keen to get a start made on the feasibility of it. It is also plastered externally.

We have two neighbour's one of whom could not be trusted to object. I would apply for planning permission first obviously.

With rental prices at all time records and availability of affordable places like hens teeth in the location (40mins outside Cork City Centre) I am fully prepared to invest in it if I could get planning. Each onebed apartment could bring in €500+ per month in rent in what would be cheap rent within the Cork commuter belt, the costs of the conversion could be earned back in 5-10 years depending on costs and the success of the rent after, due to to the scenic popular location it could become an airbnb too although not something I'm keen on.

What would be the first tentative steps to take and what would the best course of action?

Del2005

You'll be paying tax at your marginal rate on the rental income and you can only write off the mortgage interest, so the ROI might be longer. The rental crisis won't last 10 years, along with WFH becoming more common, a place 40 minutes outside a city might not be as attractive for renting in the long term.

Gumbo

Planning required.
Then possibly a fire cert and disabled access cert.

All technically possible. Planning will be the hard part.

antix80

Assuming :garage is not connected to the house, and house is where you live....

I'm thinking rent a room scheme.

If it's separate, it's unfortunate as it would be harder to rent it out under the rent a room scheme.

If rent a room were in play, you'd have the benefit of tax free income, no cgt to worry about, and no tenant rights. Rent to one "licensee" instead of 2 tenants and end up with much the same take home pay and less work /compliance

If you had an adult child or parent living with you it may be possible to apply for change of use of garage to a large apartment with shared living areas (the 2nd kitchen-cum-utility could be shared) . Then you could rent out part of it tax-free

BryanF

Assuming internal dimensions there is only space for a single unit/apartment subject planning permission

Buddy Bubs

That's 65 sq m and you'll lose space for dividing walls between apartments and also room dividing walls within each apartment leaving about 30 sq m per apartment. Pretty small and difficult to get planning for. Plus 2 tenants then and maybe twice the headaches. I'd be more inclined to convert to a single 2 bed apt if you go down this route.
Not knowing the area I couldn't comment on demand or pricing or return on investment

Yellow_Fern

Del2005 wrote: »

You'll be paying tax at your marginal rate on the rental income and you can only write off the mortgage interest, so the ROI might be longer. The rental crisis won't last 10 years, along with WFH becoming more common, a place 40 minutes outside a city might not be as attractive for renting in the long term.

No city anywhere with Dublin growth rates doesn't have a rent crisis, so I think it is here to stay. That been said the OP would need to do their sums very carefully

Water John

Interested in following your progress OP. Could the building be connected into the house? A corridor and door that, in reality will remain shut. Best option on tenants seems to be young couple moving in together. €6/800 per month would be within their range as they make savings and put a deposit together. They could easily stay 3/5 years.

theguzman

Water John wrote: »

Interested in following your progress OP. Could the building be connected into the house? A corridor and door that, in reality will remain shut. Best option on tenants seems to be young couple moving in together. €6/800 per month would be within their range as they make savings and put a deposit together. They could easily stay 3/5 years.

There is about 5 metres of a large driveway separating the main house from the garage, the garage was initially built primarily as a storage space for the annual big trailer of turf and timber to feed a stanley range within the house. It has great potential and if I thought I'd get €600 per month even as one apartment over 10 years that is over €70k and take out taxes you'd still have paid for the cost of the conversion and the following ten years would be all profit then. It is very early days yet but I have decided to talk to an architect & engineer first for their opinion on getting planning permission. Another friend said to plough on and apply for retention permission after but it sounds crazy and I won't risk my money and have to demolish it if it went fubar.

mayota

theguzman wrote: »

There is about 5 metres of a large driveway separating the main house from the garage, the garage was initially built primarily as a storage space for the annual big trailer of turf and timber to feed a stanley range within the house. It has great potential and if I thought I'd get €600 per month even as one apartment over 10 years that is over €70k and take out taxes you'd still have paid for the cost of the conversion and the following ten years would be all profit then. It is very early days yet but I have decided to talk to an architect & engineer first for their opinion on getting planning permission. Another friend said to plough on and apply for retention permission after but it sounds crazy and I won't risk my money and have to demolish it if it went fubar.

Could you go AirBnB and market it as glamping? People are staying in all sorts of things nowadays.

theguzman

mayota wrote: »

Could you go AirBnB and market it as glamping? People are staying in all sorts of things nowadays.

This would possibly be the most profitable but involves alot of cleaning and work and it wouldn't be very profitable to pay someone to prepare it unless you had weekly rentals and in winter (6 months) you'd probably make nothing but you would have more control over it for sure compared to a long term lease.