Should I split my flat and garage?

Question

Answer

You are very sensible to be realistic about the rent that you hope to achieve for your property/ It can be very frustrating when a property has a USP (such as a rage on central London) and it is put up for let at a hugely inflated rent – unfortunately, the ceiling price is set for a reason, and more often than not the landlord is left scratching their head wondering why their property is suffering a void period.

With regards to the garage, there are a few elements to consider. Firstly, look at your demographic. Are the tenants that you are looking to attract likely to have a car, or be interested in a garage in the first place? If not, then they are unlikely to be willing to pay over the odds to have the benefit of this extra amenity. In this instance, you are probably just as well looking into splitting the assets. Conversely, if your past few tenants have made of use of the garage, and consider it a real plus point to the property, it might be better keeping it as part and parcel of the package, and using it as a benefit to your property.

If you feel that there are no benefits to incoming tenants, splitting the assets is a consideration. Do consider though that may be area few boxes to tick if you choose to do this.

• Check you’re allowed to – in some developments you are not allowed to let the parking separately from accommodation
• Make sure you make it clear on the tenancy agreement that the garage is not included in the agreement – the last thin you want is arguments between tenants!
• Prepare a separate tenancy agreement for the garage. Garages fall under business lets, so your standard residential AST will not apply
• Include clear access details in both tenancy agreements. If there is right of way issues that need to be considered, make sure these are noted.