Using sleepout for Airbnb

Chen asks:
(updated on Friday, August 28th 2020)

I am looking at purchasing a property as a rental income investment. This property has a main house and an independent sleepout unit, which has an ensuite and insulation. My question is whether it is legal - and good from an investment perspective - to do a long term rental for the main house and seperate the sleepout for visitor accommodation - eg. AirBnb? Many thanks!

Our Experts Answer:

I suggest you check with your local authority regarding your property’s consents. The sleepout may have been consented as a ”granny flat” for use by extended family only, or it may not have been consented at all for accommodation. In both cases you will not be permitted to rent it out as a separate tenancy. Any building that you want to rent under the Residential Tenancies Act must have been consented for use as a separate residence. Airbnb may have its own rules, and to run the sleepout for Airbnb you should also check with your local authority to see what is permitted.

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