From, Realtor Terry Black
My last article focused on 7 advantages of owning a Secondary Suite. The focus now is 10 disadvantages of owning one. Here are 10 reasons over 2 articles to assist if you are contemplating adding a Secondary Suite (housing in addition to a primary residence also located at one’s primary residence).
1. Designing your Suite.
You’ll want to figure out whether your home requires an addition to the exterior structure or if your suite can be contained in the building as is or added as a Garden Suite (detached).
Parking, access, storage, exterior features in addition to the interior design of the Suite to be considered. Also, amenities, layout, furnishings and if any are to be shared with you as homeowner. It will take creative input and may be best to include others in designing your suite.
I frankly have enjoyed most of this design process personally before. In retrospect I should have added it as a PRO. However, the article for 7 PROS didn’t include it. That ship has sailed. I’ve included it as a CON here because it takes energy. A lot of it. Not everyone has the interest in it or the time given other interests. It is better to understand that before deciding to undertake the process.
2. Promoting your Suite.
You’ll want to research Short term, Mid term or Long term leasing and decide which best fits for you. Having predetermined your goal for the type of rental will help sharpen focus in promotions.
Whether you simply go by word or mouth or sign on the lawn or in a window. Or go further with social media advertising or a rental platform with one of the various companies, it will take creative energy and varying levels of garnering information and financial cost.
Once again, the CON part of this point is the energy required. However the research part is interesting and kind of fun.
3. Management of Client Care.
If short or mid term rental is your selected approach be clear minded that you are in the hospitality business. That is not the case with long term rental. Knowing your tenant’s needs and clear communication are required regardless of the rental type. However, hospitality service will require more of the owner/ host with respect to short term and mid term rentals than just keeping things working as is the case with long term rentals.
With regard to hospitality there are too many things to list here that are to be provided to rental guests. In brief, if you like to meet people and help them enjoy their experiences you will like this. If not, you are better suited for long term rental ownership.
4. Management of the Property. When something breaks or goes awry the resident owner is the maintenance department. You could contract out for professional property management at 10% or higher of your rental income. However, that would significantly cut into your profit.
You already paid a pretty penny to buy components and pay for services creating the suite. As well as your time commitment learning about the industry. It could be better to fix things yourself or be prepared to pay for the service.
Next article will complete part 2 of PROS & CONS of Owning a Secondary Suite.