Comparable rent schedule-main house and guest house?

[celilola]

This is a first for me...
I have an appraisal with a 2000 sf subject main house, and a detached 700sf guest house all on a 3 acre site. This is an income producing property and the lender has ordered the 1007 and 216. The guest house is rented by the same family as the main house, there is only one lease.
My initial instinct was that I would have to do two separate comparable rent schedules, one for the main house and one for the detached guest house, but I'm not sure... I think I have thought myself into a corner on this one. Any guidance is appreciated. Thanks!

 

[J Grant]

What is your market doing? Are most main houses with guest houses rented to sep parties ? Or is trend that one family rents the entire property? (more common in most areas esp upscale ones but your market will tell you)

Get your comps and what they are renting for and see any contrib value of the guest houses (assuming you could find comps with guest houses)

Ask the family that rents the place what they use the guest house for, and how much aprox of total rent they think it is worth to them.

Ask owner if he would have considered renting guest house separately or only the entire property to one family. This information is good as it represents actions of market participants.

If this is an upscale or middle income nice area, renting the guest house to separate parties could be a negative. It could make it harder to rent the main house to a good tenant, because having a stranger renting the guest house means they lose privacy and security and many renters would pay less for the main house if shared with a guest house renter, wiping out any income advantage of renting the guest house to another party.

Imo, one rent schedule would be best for the entire property with contrib rental value of guest house made as an adjustment. A main tenant of property might use guest house for extended family, home office, guests, etc.

 

[Artemis Fowl]

What does zoning allow?

 

[Terrel L. Shields]

Strikes me as an unusual rental and one that likely isn't common. You could simply look at the total revenues generated...but that's not the secondary market way.

 

[J Grant]

It's a three acre luxury property with a large main house and a guest house rented to one tenant. Use the most similar comps and find best support for contrib value of guest house to total rental.

Breaking down rentals to sep amounts for each house is not market supported unless you find this is being done in area. The subject owner chose to rent property to one tenant, explore the reasons why.

If you can't get a handle on the actions of market particpants you may need help with the assignment.

 

[celilola]

What does zoning allow?

Zoning is for SFR, accessory unit is permitted.

 

[CANative]

A rent schedule for a house and a granny? Give me a break.

Do it for the SFR only. ADU's have many uses for different owners. This is not an income unit.