“Under one roof and yet separate” – this is the motto behind the concept of the so-called granny apartment. Specifically, this is an independent residential unit, not in a multi-party house, but in a single-family house.
The term “granny apartment” is also becoming increasingly common in Austria. For example, in connection with existing detached houses: the children’s living area or the office that has become vacant due to retirement is converted into a granny apartment. However, prefabricated house suppliers now also offer houses with granny apartments. “A granny apartment is worthwhile. It is particularly advantageous in the high-end real estate segment,” Peter Mayr, Managing Director of Raiffeisen Immobilien Salzburg and one of the two spokespersons for Raiffeisen Immobilien Austria, is convinced. It allows you to address additional target groups and generate income through letting. “But you can also set up your office there and save costs. Or accommodate care staff, who are entitled to at least one separate room,” says Mayr.
No precise definition
There is no template for what the granny apartment should look like. “There are no specifications in tenancy law regarding the design of the granny apartment,” says AK tenancy law expert Walter Rosifka. Mayr therefore advises using the building regulations as a guide. “It stipulates that one-room apartments must have at least 18 square meters of net living space and two square meters of ancillary space such as a kitchenette or wet room. For two-room apartments, a total of 28 square meters is prescribed,” says Mayr. Granny apartments can of course be larger, but should be significantly smaller than the second residential unit in the house. “Then the granny apartment is considered an apartment and the house in which it is located is no longer considered a single-family house, but a two-family house,” says Mayr.
When is the granny apartment considered a residential unit?
One thing is certain: a granny apartment must be an independent living unit and therefore not only have a living and sleeping area, but also a kitchenette and sanitary facilities. Furthermore, it must have its own entrance, which can be reached via the staircase or from the outside, for example.
Granny apartment ensures value stability
When asked whether a house with a granny apartment is worth more, Mayr says: “I wouldn’t say that. But it is definitely an asset, both for the owner and in terms of marketing, as it offers more flexibility and therefore provides value stability.”
You should also bear this in mind
Anyone planning a granny apartment should be particularly aware of two points, especially if it is to be rented out: One is that, despite the physical separation, contact with roommates can be relatively close, for example if the entrance to the house is shared. The other point is that the rental income must be taxed as income. Peter Mayr points out further aspects: “If the granny apartment is only rented out on a short-term basis, you have to be careful in tourist regions that you don’t slip into tourist rentals and also don’t get into trouble with the issue of second homes. We therefore always advise renting out granny apartments to permanent tenants or using them for your own use”.
Topic tenancy law
If the granny apartment is rented out permanently, there is no getting around the issue of tenancy law. “A granny apartment in a detached house is not subject to tenancy law,” says Walter Rosifka, who advises having the tenancy agreement entered in the land register. And he has another tip up his sleeve: “When renting out granny apartments, it probably makes sense to think about a flat-rate rent”. This is because there are usually no separate consumption meters, especially in existing properties.
Walter Rosifka is a housing law expert at the Chamber of Labor, a member of the “Housing Law” working group at the Federal Ministry of Justice and the author of numerous publications on housing law. Peter Mayr is Managing Director of Raiffeisen Immobilien Salzburg and one of the two spokespersons for Raiffeisen Immobilien Österreich.
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