Granny flats, modular homes and managing backyard tenancies
PROPERTY
Property insights by Johnny Gannon, Fair Deal Property
TWO announcements this month are deserving of our attention.
The first is that the Minister for Housing expects new planning exemptions for modular homes in gardens to be finalised shortly, following a public consultation that drew strong interest. The intention is to allow families to place a compact, self-contained modular unit beside the family home without requiring planning permission, subject to size and siting conditions. The second, confirmed by the Department of Housing, is that people living in these units will not be entitled to the protections of a traditional tenant under the Residential Tenancies Board framework.
The appeal for homeowners is obvious. Across north Galway, countless households are weighing the same circumstances: an ageing parent who wants independence but should not be isolated, an adult child saving for a deposit with nowhere affordable to rent., homes with large, underutilised sites. Modular units offer a practical answer, keeping generations close while giving everyone their own front door and also providing the opportunity to secure rental income.
The decision to keep these units outside the RTB framework will, for many property owners, come as welcome relief. The rental market has become heavily regulated in recent years, and this column has previously noted the consequential exit of small landlords. The new rental rules mean a conventional letting now carries long-term security of tenure. Whatever one's view of those protections in the wider market, applying them to a unit in a family's back garden would have made the scheme unworkable. Few homeowners would install one if they could not recover possession of their own garden for six years or more.
That said, balance requires stating the other side plainly. Anyone occupying such a unit, particularly where they are not family, must understand they fall outside the rental regulations entirely. No security of tenure, no rent regulation, no access to the RTB dispute process. Both parties should put clear written terms in place before anyone moves in.
The final point is perhaps the most important. Regulation, ultimately, exists for when things go wrong. The way to avoid ever needing it is good tenancy management: honest expectations set at the outset, and both sides taking their responsibilities seriously. That has always been true of successful lettings, and it will be particularly true when the person involved is living in your back garden.
For more information visit www.fairdealproperty.ie