OWNER/OCCUPIER LANDLORDING
This is one of the cheaper ways to start making money from property. Bayley said it was usually an option for
younger homeowners who had bought a property with multiple bedrooms and rent some of them out, getting
help to pay off the mortgage and some of the household bills.
“With a marked rise in the number of international students now studying at New Zealand high schools and tertiary
education centres, more and more Kiwi families have taken to hosting foreign students in the homes.
“This arrangement generates gross weekly income of $220 to $250 per student. From this, costs such as feeding the
student, along with their portion of power and water usage can be removed to calculate a net income figure.”
Internal reconfiguration of an existing residential property to create a separate flat. This was an option for bigger
houses that were configured so that a portion could be separated off for people to live independently. “This option
works well where a dwelling has several stand-alone bathrooms, multiple sinks or basins plumbed in which are
suitable for use as a kitchen/kitchenette, and multiple door access points to the building.
“Granny flats are usually the resulting studio, one, or two-bedroom units with their own entrance, bathroom/toilet
and kitchenette amenities. They can have their own power/gas connection, allowing the tenant to pay for just
what services they use. Water can be serviced as a separate utility connection for each tenancy, although the
cost of creating of this off the mains can be several thousand dollars.”
In general, the cost of creating a flat could vary from $10,000 to $60,000 depending on the scale of fitout required.
This work will need a building consent and might also need resource consent. Be very aware that when buying a
property advertised as “home and income” should check the LIM report to make sure the “income” portion had
been consented.
