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A bit nervous to rent out this granny flat

Discussion in 'Real Estate' started by investa-fiesta, 23rd May, 2009.

  1. investa-fiesta

    investa-fiesta New Member

    Joined:
    23rd May, 2009
    Posts:
    2
    Location:
    canberra, act
    Firstly, hello everyone, I am a newbie here. :)

    I just bought an IP that has a house and a granny flat. The granny flat is very speacious and includes a converted double garage with the addition of a small lounge area (referred to on the plans as a gym), an area with a kitchen sink, a bathroom and 2 back rooms with built in robes. These back rooms have previously been used by tenants as bedrooms but are approved as "craft rooms" not "bedrooms" due to their proximity to the property boundary.

    When I rang to get it insured as a rental property I explained the situation to the insurance company and was told that it would be fine to put tenants in there to use the rooms as bedrooms.

    But I am still a bit nervous and not sure who to speak to for re-assurance.

    Any advice would be appreciated.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    9th Jun, 2005
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    4,619
    Location:
    Sydney, Australia
    Exactly what is it you are concerned about?
     
  3. investa-fiesta

    investa-fiesta New Member

    Joined:
    23rd May, 2009
    Posts:
    2
    Location:
    canberra, act
    Just concerned that if there was an accident, the insurance company would say it wasn't being used as approved by council (despite what they have told me verbally on the phone). Also, not sure whether the council could fine me for using the "craft rooms" as "bedrooms".:confused:
     
  4. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    I'd get it in writing from the insurance company so if any claims appear in the future you're fully disclosed.