Converting farmhouse into rental - anyone done this?

[Chasingmytail]

Looking at options for more income. Have Grade ll farmhouse which is under renovation and a modern but small bungalow that we are living in.

There are many options open to us but the biggest potential earner is to offer the farmhouse as a large party/family/longterm rental. Put extension on the bungalow. Or the other way around. However the bungalow would only bring a small income in letting and because its farm tied I'm unsure what the legalities are on this?

I know the cost of kitting the farmhouse out to the standards you see in Tom & Kates website would be high but the rental potential would be good. Being close to Cardiff. Celtic Manor, Abergavenny, mountain biking next door (1hr forest of dean) etc. Our location would be great.

Downsides are sharing the farm entrance, getting the areas around the yards cleared up, shipping containers moved, swearing. Dealing with very demanding clientele. Cleaning costs, demands on our time to sort the place out, advertising, redecorating...all seems to take a chunk out of a weekly income. If farming and construction is this really workable?

Renting the farmhouse as a home could be an option but that would mean someone taking over and I can see that becoming an issue.

So settled into the bungalow now moving into the farmhouse just seems like an emotional wrench. Neither of us have any passion left for the house. Decisions have been taking off us and its been a drain on us.

But do we want to add difficulties and more demands to our home life? We want to make more time to enjoy ourselves but an additional income would be a bonus. Are there any other options we could consider I wonder?

 

[renewablejohn]

Doing something similar. Farmhouse is way to big for the two of us so managed to get Listed building consent to refurb into 3 bed house with separate granny flat and one bed apartment. Long term looking at long term renting the 3 bed and apartment with Air BNB on the granny flat alternating with the canal boat. Dont underestimate the additional cost of making the place rental compliant.

 

[phillipe]

Looking at options for more income. Have Grade ll farmhouse which is under renovation and a modern but small bungalow that we are living in.

There are many options open to us but the biggest potential earner is to offer the farmhouse as a large party/family/longterm rental. Put extension on the bungalow. Or the other way around. However the bungalow would only bring a small income in letting and because its farm tied I'm unsure what the legalities are on this?

I know the cost of kitting the farmhouse out to the standards you see in Tom & Kates website would be high but the rental potential would be good. Being close to Cardiff. Celtic Manor, Abergavenny, mountain biking next door (1hr forest of dean) etc. Our location would be great.

Downsides are sharing the farm entrance, getting the areas around the yards cleared up, shipping containers moved, swearing. Dealing with very demanding clientele. Cleaning costs, demands on our time to sort the place out, advertising, redecorating...all seems to take a chunk out of a weekly income. If farming and construction is this really workable?

Renting the farmhouse as a home could be an option but that would mean someone taking over and I can see that becoming an issue.

So settled into the bungalow now moving into the farmhouse just seems like an emotional wrench. Neither of us have any passion left for the house. Decisions have been taking off us and its been a drain on us.

But do we want to add difficulties and more demands to our home life? We want to make more time to enjoy ourselves but an additional income would be a bonus. Are there any other options we could consider I wonder?

How big is the farm house sqm wise ,and whar sort of state is it in ?,p!umbing wise leccy wise

 

[J B]

Renting the farmhouse as a home could be an option but that would mean someone taking over and I can see that becoming an issue.

Sorry, don't understand what you are saying there re 'taking over'

So settled into the bungalow now moving into the farmhouse just seems like an emotional wrench. Neither of us have any passion left for the house..

Seems like you would be best staying in the bungalow and maximising your income from the house in some way.
Holidays = much more hassle but perhaps more profit???
Residential = much simpler!

 

[Doing it for the kids]

Tax...... could cost you more than 10 yrs rent!

Tenants won't like the farm lifestyle despite thinking they will!

 

[phillipe]

If its going to cost say an extra 40 grand to make it pucker,to have it holiday rented for say 20 to 25 weeks a year ,if all goes well.

 

[Danllan]

...Tenants won't like the farm lifestyle despite thinking they will!

One of my cousins rented out his 'traditional' house and went to live in a tied bungalow, for the money... the problem wasn't so much the farm lifestyle / routine as the proximity to the yard. They rapidly went through half a dozen sets of tenants before throwing in the towel. After some rational thinking and the construction of a couple of banks with fences on - for extra height - and hedges in front for 'prettiness' they now rent the place out for holidays and breaks.

The income is a bit more than they would have got for regular tenants and the guests enjoy the novelty factor of being on a farm without getting tired / pis*ed off with it. But there is the faff of having to keep the place immaculate and changing linen etc.. On balance the income makes it worth it for them, so it may be worth a thought if the location is 'acceptable'.

 

[theboytheboy]

Be aware that epc rules for rentals on ast has changed as of April 1st. You will need to make sure the EPC is e or lower unless you are covered by the exemptions

 

[phillipe]

Be aware that epc rules for rentals on ast has changed as of April 1st. You will need to make sure the EPC is e or lower unless you are covered by the exemptions

All property sales will be subject to Epc rules,

 

[Chris F]

Won't being grade II listed cause problems creating multiple rentals or are you thinking of doing it as just one. Having had 5 holiday rentals on my farm, it can be draining dealing with the public, the worst being doctors, with bankers coming in a close second. My favourite complaint was about how loud the birds chirped in the countryside - they don't have then in the city.

Can you not just separate everything properly and sell the property?

 

[How much]

I think there is grade II exemption for EPC , how remote are you ? would it convert to rural offices or multiple smaller rural offices , there seems good demand for those in the right location , it would need very good broadband , but your rental or even family home will need that on the letting market these days and probably longer lease times .
I don't think there is much money in the holiday accommodation market once you nett off the empty times , rates , insurance letting fees etc etc especially if you contract out the cleaning etc

 

[Campbell]

Thinking the same ideas here, converting an adjacent granary type building for ourselves then letting out the old house. I think it will work if we don't borrow £ to do it, but that then makes things a bit tight on specification. Have family members with property and holiday lets, and it does seem the higher the standard provided the much better your income returns are. Scrupulous attention to details, allowing pets and possibly a hot tub are key features.....oh and not forgetting the hard graft once a week at change over time.

 

[Chris F]

Hot tub, does increase revenues a lot. But you have to empty, clean and re-heat for every set of guests. Which is an expense and a faff. Perfect it you have a biomass heater though

 

[Chasingmytail]

Ive given this more thought and don't think its going to work for us. It will increase our workload where its going to cause stress and take more time out of our limited time with the children. Also mean it would affect our groundswork business which is with a utility company and its regular. The farmhouse is too close to the agricultural buildings and going 5 star would be outside the comfort zone of the chief.

Another option is business rent. That would be a lower rent but its more short term with no demands by holiday makers/longterm rent. Usually Mon - Fri either professional or shared. This way the investment would be tiny compared to furbishing a home with exceptional soft furnishings. We'd still have control of the grounds and not have people taking over and making their own rules and coming into conflict over what is interpreted in the rules. There is good demand for business rent around here. We are close to Newport/Cardiff/Abergavenny and its a lovely spot. There are many business paying for this kind of accommodation as its cheaper than the hotels.

What we don't want to do is make life more stressful.

 

[Chasingmytail]

Won't being grade II listed cause problems creating multiple rentals or are you thinking of doing it as just one. Having had 5 holiday rentals on my farm, it can be draining dealing with the public, the worst being doctors, with bankers coming in a close second. My favourite complaint was about how loud the birds chirped in the countryside - they don't have then in the city.

Can you not just separate everything properly and sell the property?

No the bungalow is farm tired and is too close to the farm buildings. Having had a horse livery and had people here it was not pleasant and the realisation of being surrounded with people you don't like could ruin our home life.

I agree its not going to work. The difference with lots of rentals is they are a distance from your home. Def short term rental of the bungalow is the best option. Even if we extend it a little to 3 bed that will allow for sharing. The plan is this is the home for the children so its a family investment. Being realistic having a Friday of intense cleaning, painting and pandering down to city individuals would not suit my husband at all. After a few weeks it would cause eruptions.

The options being low key rental to the odd person (say mountain biker) or business Mon-fri rental.

 

[Chris F]

A long term rent sounds like it might be possible. Basically you want the most income for the least effort.

Business rent could be a good option - you would need good broadband though.