Attached annexes,popular or not?

If you are planning to buy a rental home, or you're thinking about what to do with one you have just acquired, this is the place for any questions about starting out in the rentals business.
AnnieMarie
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Attached annexes,popular or not?

Post by AnnieMarie »

Hi there, happy to be part of this forum. I'm sure I'll have many questions, but this is my first one.
We are in the process of buying a bungalow with an attached annex. With some work, it has the potential to be a self contained holiday let with it's own entrance, and small outside area.
I've done quite a lot of research on the legalities, but at the moment my concern is it's desirability to potential customers.
Do holidaymakers tend to prefer completely separate accommodation away from the owners?
Or is there enough demand for on-site lets?
The property is near a popular coastal village, 10 minutes walk from the beach, and with good local amenities.
Thanks, Annie
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Cymraes
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Post by Cymraes »

Hard to say. Would you want to stay there?

What market are you aiming for - will it appeal to them?
Will you take dogs/children etc

I'd contact one of the big holiday let agencies and ask their local rep to come round and see what they say (you don't have to use them afterwards!).

How would you feel about it too? I value my privacy very highly and I would hate having guests in my own annexe at home. Also seeing what guests can do to a property while they are in residence (even if they leave it spotless) I'm often very glad I'm not on site.
Grimmy
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Post by Grimmy »

Hi AnnieMarie

You say that you have an attached annex, but is there an interconnecting door to your own home or is access just via separate private entrance? I think this makes a difference.

We have an annex to our home which is a holiday let, but it only has a private access and the walls are super thick so there is no noise transfer between the properties. We;ve never had an issue with guests being bothered by our close proximity to them - but then you do need to make this clear on the advertising so that they are aware beforehand.

There is plenty of demand for on-site lets in West Wales - that is where we are too!
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Casscat
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Post by Casscat »

I think an attached annex is not a problem as long as it is 100% clear that this is what you are offering and your accommodation is priced to reflect it. Of course people would much rather have wholly private lodgings well away from an on site owner, but the location & pricing will impact upon this.
AnnieMarie
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Post by AnnieMarie »

Thanks for your replies.

Cymraes, it would be just for couples, and I'm still debating on whether to allow dogs. I think it would be a bonus, as we found that there was little to choose from in the area for just two people and a dog. Good idea about the holiday company!

Grimmy, at the moment the annex is interconnecting, but it could be altered so that it just has it's own entrance. I had thought about leaving a lockable interconnecting door so that when family stay, they could have direct access the the main property, but maybe that isn't such a good idea?

Casscat, yes I've done some pricing research, and I noticed that annexes do seem to be priced lower than completely separate lets.
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Cymraes
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Post by Cymraes »

If you block up the connecting door permanently then it will no longer be an annexe but a separate property which can open a whole new can of worms.
AnnieMarie
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Post by AnnieMarie »

As I understand it Cymraes, unless I was going down the "rent a room" route, then the annexe would have to be treated as a separate dwelling anyway, with it's own council tax (or business rates, with a possible reduction on the council tax for the main property, and a rebate on the business rates ) and separate insurance.
Yes I think you have to make it so that the connecting door can be re-instated rather than blocked off permanently, should you wish to return it to one dwelling for council tax purposes.
I've spoken to the local council, they have been very helpful so far, but I do need to get my head round all the ins and outs of the implications, it's a steep learning curve!
Shepster77
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Post by Shepster77 »

Hi, we are looking to buy a house with an attached annexe. I have asked before about the council tax situation but what would happen if you decided to simply block up the through way from main house to annexe? Can you simply block it up and agree to pay more council tax? Is planning required? I would prefer the annexe to be separate for both us and the guests. There would still be two exits from the annexe if that is needed for fire regs. So many questions..... don't people just simply chuck their house / barn/ annexe on airbnb and rent it out without things like fire blankets, etc?
Giraffe
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Post by Giraffe »

Shepster77 - My understanding is that if you block off an annexe and it has its own entrance then you pay a separate council tax. As a FHL it may be eligible for business rates and a further discount on these. If you are unsure about your situation I would suggest you contact your council for advice.

Re fire regulations, you must have one exit that does not need a key to open it. Your local fire brigade will come and help you get it right for your property. As you say, a number of people probably let via Airbnb without knowledge of fire regulation, but they do this at their peril. We had a case here in Cornwall where a FHL did not have the appropriate fire alarm system. Their property burnt down when visitors were there, but the insurance would not pay up due to the owners' negligence. Could have been dreadful if someone was badly injured, or heaven forbid, died!
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greenbarn
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Post by greenbarn »

Some of the points raised in this thread highlight the differences between “serious” owners, who check out the requirements and regulations that apply (for very good reason in most cases) and those who simply wing it for a bit of easy extra cash. It also raises the question of whether it’s time that UK holiday rentals required an operating licence, which is the case in some other countries in Europe.

I think it’s fair to say that those of us on LMH take the business seriously, and probably already do, or would be prepared to do, whatever would be required for a licence - and pay accordingly. Those who don’t are cutting corners and costs and selling cheap - and that’s what we all have to compete with - yet guests don’t know the difference, and currently there’s little reason why they should.
AndrewH
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Post by AndrewH »

greenbarn wrote:Some of the points raised in this thread highlight the differences between “serious” owners, who check out the requirements and regulations that apply (for very good reason in most cases) and those who simply wing it for a bit of easy extra cash. It also raises the question of whether it’s time that UK holiday rentals required an operating licence, which is the case in some other countries in Europe.

I think it’s fair to say that those of us on LMH take the business seriously, and probably already do, or would be prepared to do, whatever would be required for a licence - and pay accordingly. Those who don’t are cutting corners and costs and selling cheap - and that’s what we all have to compete with - yet guests don’t know the difference, and currently there’s little reason why they should.
I go with that entirely. I am surprised there is no such thing in the UK, because it would sort the sheep from the goats. I gather, just from reading on LMH, that a tourist licence of some sort is required for self-catering properties in a number of countries in mainland Europe.

Here in Greece such a licence is mandatory and application has to be made through, and certified by, a professional engineer. Much of the countries revenue derives from tourism, so suitability of rental properties, their safety, and fitness for their purpose is taken seriously by the government. These EOT licences, as they are called, are expensive to obtain - mine cost €2,500 - and to operate without one risks fines and being closed down. So winging it for a bit of extra cash is not really an option.
Giraffe
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Post by Giraffe »

I also agree with Greenbarn. I recently stayed in an English B&B where the owner had misinformwed authorities about the number of bedrooms they let to avoid installing the regulatory fire alarm system. I was with friends who had organised the stay, otherwise I might have left. I did query the lack of a proper fire alarm system given the size of the B&B. We know they had lied because we filled all the bedrooms, including the ones they told authorities that they only used for family who came to stay They made out they were doing us a favour by putting us in the spare rooms! I wonder how many visitors heard that line?
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