Renting out a sleep-out

Linda asks:
(updated on Friday, July 31st 2020)

I have a sleep out that I would like to rent out. It has a kitchenette and ensuite. The power is connected to the main house and there is no washing machine in the sleepout. Do I rent it as a flat with tenancy services or would it be considered a flatmate situation where we have a private agreement?

Our Experts Answer:

A sleepout is not able to be rented as a separate unit if it is not consented as a separate residence by the local authority.  It is best used as part of the main residence, for flatmates or extended family.  If you let the property separately without the required consent being in place the tenancy is unlawful, and a landlord faces a possible order from the Tenancy Tribunal to return a large amount of the rent paid by the tenant.

Select Home Loans 4.29
TSB Special 4.34
ICBC 4.39
HSBC Premier 4.39
Heartland Bank - Online 4.40
China Construction Bank Special 4.45
SBS Bank Special 4.55
Kainga Ora 4.57
Co-operative Bank - First Home Special 4.75
Kiwibank Special 4.85
AIA 4.85
Select Home Loans 4.86
Heartland Bank - Online 4.90
TSB Special 4.99
ICBC 5.09
HSBC Premier 5.15
SBS Bank Special 5.19
China Construction Bank Special 5.19
Kiwibank Special 5.19
AIA 5.35
Co-operative Bank - Owner Occ 5.35
First Credit Union Special 5.45
Select Home Loans 5.20
TSB Special 5.75
Kiwibank Special 5.79
HSBC Premier 5.89
ICBC 5.89
SBS Bank Special 5.95
BNZ - Classic 6.19
Resimac 6.33
China Construction Bank Special 6.35
Westpac Special 6.39
Kainga Ora 6.43
Select Home Loans 4.09
Heartland Bank - Online 4.10
Pepper Money 4.49
TSB Special 4.79
Liberty 4.84
Kiwibank Special 5.00
ICBC 5.25
Kainga Ora 5.43
China Construction Bank 5.50
Kiwibank 5.50
Kiwibank - Offset 5.50