E102. Converting a garage into an AirBnB

In this episode of Building Design, Prime Time Podcast Amelia and Frank explore the potential pitfalls of turning your garage into short-term accommodation. While the idea of creating an Airbnb or private flat from an underused space is tempting, there’s far more to it than meets the eye.

They share real-life examples where stunning but non-compliant conversions had to be downgraded to non-habitable use, costing owners dearly. From fire safety and bushfire regulations to drainage, plumbing, ventilation, and neighbour impacts, Amelia and Frank break down the hidden requirements that can make or break a project.

You’ll hear about the must-check factors before you start — like easements, roof heights, parking, and acoustic privacy — and why involving a qualified designer, architect, and building surveyor early can save you from expensive mistakes. They also discuss how to assess whether a conversion is financially viable and how to navigate the approvals process so your project adds value instead of headaches.

If you’ve ever looked at your garage and imagined it generating income, this episode will give you the insider knowledge you need to decide if it’s worth pursuing. Be sure to subscribe so you don't miss an episode. 

About us
Prime Design is a building design company locally owned and operated in Tasmania since 2004.  Our goal is to share as much valuable information as possible about the process of building design, extensions, and more. We will talk about a different topic each week. To suggest a topic you would like us to talk about contact us at info@primedesigntas.com.au

Disclaimer
The information provided on this podcast is for educational and informational purposes only and is not intended to be a substitute for professional advice, individual circumstances, or remedy. We strongly suggest you consult a qualified professional before taking any action based on the information provided in this podcast. The views, opinions, and information provided in this podcast are those of the hosts do not necessarily reflect the official policy or position of any other agency, organisation, employer, or company. All content provided on this podcast is provided “as is” without warranty of any kind. We make no representations as to the accuracy, completeness, currentness, suitability, or validity of any information on this podcast and will not be liable for any errors, omissions, or delays in this information or any losses, or damages arising from its use. We reserve the right to change content or delete any information provided on this podcast at any time without prior notice.

Transcript

E102. Converting a garage into an AirBnB 

[INTRO] (0:08 - 0:28)

Hello and welcome to the Building Design, Prime Time Podcast, focused on providing valuable information for anyone looking to undertake a new build or extension project. We'll share our tips, tricks and stories from a building designers perspective. 

[Amelia] (0:28 - 0:42)
Hello and welcome to the Building Design Prime Time Podcast. I'm your host, Amelia. And once again, we're joined by Frank Geskus.

[Frank] (0:42 - 0:49)

Happy Friday, Amelia. 

[Amelia]

Oh, happy Friday. 

[Frank]

Been a while since we've done one.

[Amelia]

I know. 

[Frank]

I've been sick.

[Amelia] (0:49 - 0:50)

You have.

[Frank] (0:50 - 0:52)

Half the office has been sick. We've been dropping like flies.

[Amelia] (0:52 - 0:55)

We have. But you're feeling better now?

[Frank] (0:55 - 0:57)

Oh, yes. I feel 100% human now.

[Amelia] (0:58 - 0:59)

Yeah, that's good.

[Frank] (0:59 - 1:04)

Yes, but everyone else in the office and all through Tasmania, I'm hearing it everywhere. Everyone's getting crook.

[Amelia] (1:04 - 1:09)

I think it's the time of year, isn't it?

[Frank]
 It's been especially bad, though. 

[Amelia]

I think so, yeah.

[Frank] (1:09 - 1:12)

So, everyone look after yourselves, drink heaps of fluids.

[Amelia] (1:13 - 1:13)

Water.

[Frank] (1:14 - 1:15)

And sanitise.

[Amelia] (1:15 - 1:17)

Yes, sanitise always.

[Frank] (1:17 - 1:19)

Yes. Hard to get back into that habit.

[Amelia] (1:20 - 1:26)

It is, isn't it? It's not until something like a plague, a pandemic or...

[Frank] (1:26 - 1:38)

Yeah, that rubbish. We don't want to go through that rubbish again, do we? 

[Amelia]

No.

[Frank]

Oh, man. All right. I think we're going to be...Oh, not think. I know. So, we're going to have a chat about converting garages into short-term accommodation.

[Amelia] (1:38 - 1:45)

I think people are going to really enjoy this topic because, you know, they can monetise their property. How cool is that?

[Frank] (1:45 - 1:53)

Oh, yeah, totally. And also, it's on the back of where we had to try and help someone because they built one illegally.

[Amelia] (1:54 - 1:54)

Oh, no.

[Frank] (1:55 - 1:57)

And we couldn't get it to comply.

[Amelia] (1:58 - 1:59)

Really?

[Frank] (1:59 - 2:06)

Yeah, it was a bit... They weren't happy chappies, but you go through the building code and we couldn't get it to comply.

[Amelia] (2:07 - 2:11)

Well, that's the thing. People, they may not know what the regulations are.

[Frank] (2:11 - 2:51)

Well, yeah, but also they've let up the garden path. They think they can do anything with a garage the same as a house. So, that's why we're doing this podcast.

One, you can monetise and get some extra income because that's always good. It's a bit of extra effort, obviously. And that's if you've got a garage.

And also, do it right. Now, this also applies if you want to turn into a granny flat or an ancillary. The only caveat there is the bushfire levels are treated differently.

So, we'll get into that a little bit later. So, first things we'll start with, you've got to assess what is this garage made of? If it's connected to the house, is it built the same way as the house?

Because then you've got potentially a fire rating issue.

[Amelia] (2:52 - 2:52)

Right.

[Frank] (2:52 - 3:17)

So, you've got to double check that. But say if you've got a standalone garage, and that's probably a nicer way if you're going to do something for an Airbnb, is it brick veneer? It's got a frame inside, brick on the outside.

Is it double brick? Is it concrete block? Is it a timber frame, steel frame?

Is it clad in colour bond, clad in something else, clad in asbestos? Don't laugh. It's still there.

All those things are still out there.

[Amelia] (3:18 - 3:18)

Yeah.

[Frank] (3:18 - 3:34)

So, you've got to figure out what it is. Is it structurally sound, waterproof? Is it?

Because when you do a shed and you convert it to what is called habitable, class 10 to class 1, in basic terms, it's a different structural arrangement. Yes. So, the footings may not be suitable for it.

The frame may not be suitable.

[Amelia] (3:34 - 3:34)

Yes.

[Frank] (3:35 - 3:52)

Does your slab, if it's a slab, most likely it is, does it have Forticon or plastic under the slab? So, it's kind of got waterproof. Very important consideration.

So, you need to have that assessed properly. If you fail on any of those, don't bother going any further.

[Amelia] (3:53 - 3:53)

Yes.

[Frank] (3:54 - 3:55)

Keep it as a garage.

[Amelia] (3:55 - 4:00)

What about if it's prefabricated, you know, if you need to add like windows or things like that?

[Frank] (4:00 - 4:09)

Yeah, like you know, you've got your Fair Dinkum, Ram Built type sheds. The footings are the ones that let them down because they're designed for a shed, not for a dwelling.

[Amelia] (4:09 - 4:10)

Yes.

[Frank] (4:10 - 4:17)

So, that's where it lets them down. But we've been able to do some very expensive rectifications to get them to comply.

[Amelia] (4:17 - 4:18)

Yes.

[Frank] (4:18 - 4:20)

So, the other thing is, is the roof high enough?

[Amelia] (4:21 - 4:23)

Yeah, that's a good point. Is it 2.4 metres?

[Frank] (4:23 - 4:39)

Yeah, 2.4 metres for the habitable areas, bedrooms, living and like. Kitchen, bathrooms can be 2.1. Now, sounds like if you look at it, it might have enough space. But by the time you put a ceiling in there and you put your insulation in there, you may not have enough space in there.

[Amelia] (4:39 - 4:40)

That's a really good point.

[Frank] (4:40 - 5:01)

Can plumbing work? You're going to put a bathroom in. 

[Amelia]

Yes.

[Frank]

You want to be able to not push stuff uphill. You want it to be able to go to gravity to feed. 

[Amelia]

Yes.

[Frank]

So, you need to make sure that is actually possible. Or if you're in a rural setting and you're on a wastewater or a septic, is that system going to be capable of handling the extra load?

[Amelia] (5:01 - 5:03)

Yes, you may need to upgrade.

[Frank] (5:03 - 5:04)

And that's really expensive.

[Amelia] (5:05 - 5:05)

It is, yes.

[Frank] (5:06 - 5:39)

So, again, things to consider. Can you cut in new windows? Because most sheds don't have it, you know, they might have one window, but the window, I'll guarantee you, won't comply.

So, you have to pop it out, put a new one in. You have to cut in some new windows, one for the bathroom, one for light. If you've got a nice view, a nice outlook, you want to do that.

You want to make sure you're not cutting out the structural bracing. Is it going to affect the building structurally? All those things need to be put in.

Here's one that a lot of people don't look at. Is the floor level of that garage high enough out of the ground?

[Amelia] (5:40 - 5:41)

That's a really good point.

[Frank] (5:41 - 6:10)

You don't want water coming into it. And this is no different with when we do a house. You need to have that minimum height between floor to finish surface level, the ground, or your footpaths.

And that was the problem with the one I just mentioned. That was one of the problems. It was sitting too low in the ground.

Now, you might say, hey, just dig it all out. The problem is all the water will fall directly towards the garage or accommodation.

[Amelia] (6:11 - 6:13)

And you want stuff to drain away from it.

[Frank] (6:13 - 6:28)

Well, it has to drain away. You're not allowed to let it run to the building without doing expensive drainage systems. So, then the other thing, you've got to look at your planning.

Are they going to allow you to do short-term stay? Are they going to allow you to convert it? Have you got enough parking on site to do this?

[Amelia] (6:28 - 6:30)

That's a good point too.

[Frank] (6:30 - 6:53)

Yes. Another one. Are you in a bushfire-prone area?

This is always a winner. We've spoken about this in previous podcasts. When it comes to short-term stays in Tasmania, so I'm not sure in the rest of the States, that you cannot have a short-term stay if it's greater than about 12.5. Oh, wow. It's pretty low.

[Amelia] (6:53 - 6:54)

Yeah, right.

[Frank] (6:54 - 6:55)

And it makes a lot of sense why they do it.

[Amelia] (6:56 - 7:02)

Well, I guess it does make sense because, you know, the people that are going to be staying, they don't know the area.

[Frank] (7:02 - 7:06)

All that. Yes. How do they get out?

How do they get away from the area?

[Amelia] (7:06 - 7:07)

Yes.

[Frank] (7:07 - 7:13)

It's no different when you look at hotels and motels. There is clear pathways. There's exit lights everywhere.

[Amelia] (7:14 - 7:14)

Yes.

[Frank] (7:15 - 7:33)

And to a point, you need to do that in these as well, not to the same level. Another thing you need to consider is, where is this building positioned? Now, you've got your main house, that's fine.

Or if it's connected, you know, no choice. You've got to deal with the acoustic side, right?

[Amelia] (7:33 - 7:33)

Yes.

[Frank] (7:33 - 7:51)

Noise. The other part of it is, you don't want it to be too close to the boundary. If you're closer than 900 millimetres to the boundary under the residential requirements under the NCC, you can't be closer than 900 millimetres.

Again, another failure for this one that we assessed.

[Amelia] (7:52 - 7:52)

Oh, dear.

[Frank] (7:53 - 7:54)

It was on the boundary.

[Amelia] (7:55 - 7:55)

Yes.

[Frank] (7:56 - 8:15)

And even though it was built out of concrete blocks, where the trusses came in, they didn't go into the side of the block, they went on top of the block. So what that meant is the edge of the roof frame was exposed to the boundary, which then is a fire risk. And you would have had to modify the building.

[Amelia] (8:15 - 8:15)

Yes.

[Frank] (8:16 - 8:49)

Unfortunate, you know, they didn't do their research on that. And they did not get the right advice, if any. So also, and this does happen, sheds have been built over stormwater and sewer pipes, as in like council or the regulatory authorities.

So it might be all right for a garage, but as soon as you convert it to something else, it may not be the same. Or it might have a part five agreement, which means in Tassie anyway, that the authority has a right, hey, we need to replace this pipe, we're knocking down your shed.

[Amelia] (8:49 - 8:50)

That would be awful.

[Frank] (8:50 - 8:53)

But bad luck, you've built over an infrastructure.

[Amelia] (8:53 - 8:54)

Yes, that's true.

[Frank] (8:55 - 9:12)

You know, but you could have a part five agreement, as they say, and have an agreement with them. And it will say on there, we have the right to do this. That's why they have easements in place.

So don't do that. We've spoken about this. Do your research, you know, get a qualified person to find out where all the pipe underground assets are.

[Amelia] (9:13 - 9:13)

Yes.

[Frank] (9:14 - 9:30)

Spoken about how to get the sewage to work. You could put a pump station in, that's fine. Oh yeah, here's one.

Number one, check your power supply into your property, because you've got power to the house, power to the shed, but is it enough power to run another habitable area?

[Amelia] (9:31 - 9:31)

Yes.

[Frank] (9:31 - 9:37)

You're gonna put heating in there, hot water cylinder, lighting. Do you have enough juice coming in?

[Amelia] (9:37 - 9:39)

That's right, you're gonna have to upgrade your box.

[Frank] (9:39 - 9:40)

You might or you might not.

[Amelia] (9:40 - 9:40)

Yes.

[Frank] (9:40 - 9:44)

That's for someone to assess, but it's a bit of a rude shock when you do have to upgrade it.

[Amelia] (9:44 - 9:47)

Oh yeah, that's not, you know, peanuts to do that.

[Frank] (9:47 - 9:48)

Definitely not.

[Amelia] (9:48 - 9:48)

No.

[Frank] (9:48 - 10:00)

But people do it anyway without checking. And this is what this is all about, people aren't checking. The other thing is, and this comes down to, is this financially viable?

[Amelia] (10:01 - 10:03)

Yeah, that's a good point. You've got to weigh it up, don't you?

[Frank] (10:03 - 10:25)

But you won't know until you get someone to do a design assessment and whatnot. You've just got to meet six star, you've got the insulator, the bathroom's got to meet a minimum requirement, it's got to be waterproofed, it's got to be done just like a house. How much the permit's gonna cost you?

How much is the builder gonna cost you? Are you gonna make, because you're gonna turn this little thing into a money-making exercise, but how much money do you have to put in and how much do you have to make to get a return on?

[Amelia] (10:26 - 10:26)

That's right.

[Frank] (10:27 - 10:29)

To pay it back. Well worth investigating.

[Amelia] (10:30 - 10:33)

That's where forecasting and things like that can be.

[Frank] (10:33 - 10:45)

Yeah, exactly. Doing the sums. You've got to do your numbers and they'll send to you whether it's worthwhile or not.

Please be aware that the door, the access door into a shed is a shed door, it's not a residential door.

[Amelia] (10:45 - 10:47)

Yes, you probably have to change that.

[Frank] (10:47 - 10:49)

Not only that, you might have to change the frame.

[Amelia] (10:50 - 10:51)

Oh, okay.

[Frank] (10:51 - 10:55)

Because the frame doesn't seal, it doesn't have a proper seal, it has to be airtight.

[Amelia] (10:55 - 10:56)

Yes.

[Frank] (10:57 - 11:09)

Has to seal tight so there's no air gaps. You've also got to have enough opening windows to get ventilation. Here's one that happens a fair bit and this actually happened on this property too.

They kept the roller door in place.

[Amelia] (11:10 - 11:10)

Oh, okay.

[Frank] (11:11 - 11:16)

So it's closed. And then they just framed behind it. What do you think the problem there is?

[Amelia] (11:18 - 11:19)

Water?

[Frank] (11:20 - 11:22)

Yeah. Where?

[Amelia] (11:23 - 11:26)

Well, there's normally like a lip on the edge of the...

[Frank] (11:26 - 11:26)

Yeah.

[Amelia] (11:27 - 11:27)

Yeah.

[Frank] (11:27 - 11:38)

Yeah, so when the garage door comes down, there's a bit of a lip. But that doesn't necessarily mean it complies when you turn it into a habitable space.

[Amelia] (11:39 - 11:41)

Does it have to be a certain step? 

[Frank] (11:41 - 11:47)

Yeah. Well, when you look, when you put bricks in, right? So bricks are sitting in a rebate. It's a 90 mil rebate.

[Amelia] (11:48 - 11:48)

Yes.

[Frank] (11:48 - 12:02)

You have lightweight cladding, could be tin, cement sheet, timber. It goes over the edge of your slab by at least 50 mil. 

[Amelia]

Yes.

[Frank]

So if you've got a garage door with a 10 mil lip, doesn’t quite cut the mustard.

[Amelia] (12:02 - 12:03)

No, no.

[Frank] (12:04 - 12:26)

Because when you look at garage doors, you get driving raining, is there still a bit of moisture gets through? Yes. So that means the moisture can't get out as easily.

So that's where it becomes a bit of an issue. So for this one that we did and we assessed it, that was no good either. So, and the other side, are your neighbours gonna be supportive?

Are they gonna be happy about this?

[Amelia] (12:26 - 12:26)

Yes.

[Frank] (12:27 - 12:38)

You know, I understand that parking impacts, that type of stuff. But to be honest with you, I can't see it any worse than a family being in there and they've got a bunch of teenagers with their cars.

[Amelia] (12:39 - 12:39)

True.

[Frank] (12:39 - 12:42)

You know, especially at the end of a cul-de-sac.

[Amelia] (12:42 - 12:44)

Yes, you sound like you've experienced it.

[Frank] (12:44 - 13:15)

Well, I've got my own kids with cars and there's just cars everywhere, especially when they buy a second car for this project car. Or friends of mine, they've got like they had five kids and then a couple moved out and then three of them are there and one's got two cars, another one's got a work car and they're in a cul-de-sac and the neighbours get crabby with them and all this type of stuff. And they don't know where to put the wheelie bins because the cars are in the way and everyone gets shitty with each other and then put the bins in front of people's doors or their cars.

Get the picture?

[Amelia] (13:16 - 13:16)

Yeah.

[Frank] (13:17 - 13:59)

Yeah. I love your neighbours. Yes, yes.

So you've got to consider this as well, you know, to be a good neighbour. So these are great ideas to do to make a little bit of extra coin. You've got to weigh up if this is going to be something you really want to do, you're passionate about it.

If you can do it for a good period of time, you're going to make some good money out of this, but there's a lot to consider. But just converting these to Airbnb or stays or whatever you want to use, or just using as a granny flat or an ancillary dwelling to get one or two of the kids out of the house, you really need to check if this is fair dinkum because you could dump a heap of money in it and you're just going to pour it down the drain when you find out this doesn't comply.

[Amelia] (14:00 - 14:00)

No.

[Frank] (14:00 - 14:01)

Especially when you go to sell the house.

[Amelia] (14:02 - 14:11)

And it's not always a set and forget either, you know, you've got to maintain it regularly, especially with the amount of people going in and out of it if it's short stay accommodation.

[Frank] (14:11 - 14:13)

Yeah, but you can still make good dough out of it.

[Amelia] (14:13 - 14:13)

Yeah.

[Frank] (14:13 - 14:14)

You make it an experience.

[Amelia] (14:15 - 14:16)

Yep, you’ve got to deal with customers.

[Frank] (14:16 - 14:17)

Yep, all that.

[Amelia] (14:17 - 14:17)

All that stuff too.

[Frank] (14:18 - 14:23)

But I think, look, in today's world, if you need to make a bit of extra coin, if you work hard, you can do all right.

[Amelia] (14:24 - 14:24)

Oh, definitely.

[Frank] (14:24 - 14:25)

And that goes for anything.

[Amelia] (14:26 - 14:31)

There are people that have made full-time jobs out of just, you know, creating Airbnb.

[Frank] (14:31 - 14:39)

We've designed specific Airbnb houses with flexible door spaces so you can have two sets of people in one house.

[Amelia] (14:39 - 14:41)

I think I know the one you're talking about.

[Frank] (14:41 - 14:42)

I've been in that one.

[Amelia] (14:42 - 14:43)

It was great.

[Frank] (14:44 - 15:07)

And I thought it was very clever of them, their thinking, and we just had to make it work for them so then it can open up to a bigger family. Yes. So they've always got this thing filled.

And they run three, maybe four short-term accommodations. But they keep it, you know, they're always clean, they're always neat. I think it's a really good way of making a bit of extra coin, but it takes effort.

But you've got to have a go.

[Amelia] (15:08 - 15:10)

Oh, yeah. And do it the right way.

[Frank] (15:10 - 15:20)

Yeah, do it the right way. Yes. So you need to get a designer, architect, and building surveyor on board early, really, really early on these, if you're thinking about it.

[Amelia] (15:20 - 15:23)

Don't just get in and do it yourself.

[Frank] (15:23 - 15:24)

Oh, please don't.

[Amelia] (15:24 - 15:25)

Please don't do that.

[Frank] (15:25 - 15:26)

I can't necessarily fix it.

[Amelia] (15:26 - 15:26)

No.

[Frank] (15:27 - 15:30)

Like I've had to try and fix someone else's and we couldn't fix it for them.

[Amelia] (15:31 - 15:34)

Yeah, and that's obviously been really disappointing for those people.

[Frank] (15:35 - 15:39)

Oh, it is, it is. And I feel bad for them too, but there's nothing we can do.

[Amelia] (15:39 - 15:39)

Yeah.

[Frank] (15:40 - 15:45)

I mean, the compliance issues were so overwhelming and it was really sad. They had a laundry in there and everything.

[Amelia] (15:46 - 15:46)

Oh, wow.

[Frank] (15:46 - 15:58)

Yeah, they went the full hook. The kitchen was beautiful, bathroom was beautiful, laundry integrated. It was a neat setup.

It looked out and beautiful out view, but all these issues it had.

[Amelia] (15:59 - 16:02)

So what do they have to do with that space now? Do they have to pull it down?

[Frank] (16:03 - 16:23)

Bathroom can stay in there. Laundry's come out and parts of the kitchen have to come out. You can have a kitchenette and now it's your rumpus room of a class 10.

You know, it's a studio, it's a workshop. It's a non-habitable rumpus room. You can muck around in and play with the cars and bikes.

[Amelia] (16:24 - 16:29)

So it can't be called a livable space, like a lounge room or a bedroom or anything like that.

[Frank] (16:29 - 16:30)

Nothing like that.

[Amelia] (16:30 - 16:31)

Yeah.

[Frank] (16:31 - 16:49)

Still usable space, but it's not what you think it is. And if you're looking at buying one, be really careful about people saying, oh, this is that, you know, garage is converted into this space or converted into a bar or whatever. Because I've seen a few of those online, people, you know, man caves and stuff.

There's still a workshop.

[Amelia] (16:49 - 16:50)

Yes.

[Frank] (16:50 - 16:53)

If they've got a bed in there and all that, that's a load of horseshit.

[Amelia] (16:53 - 16:54)

Yeah, you can't do that.

[Frank] (16:55 - 17:02)

You've got to go through the proper process. And I've seen too many of them and on the boundaries and they don't have firewalls and yeah.

[Amelia] (17:03 - 17:03)

Big no-no.

[Frank] (17:03 - 17:17)

Lots of no-no's and people think they're doing the right thing. They start small and they just get a little bit excited. And then I think it's really special, special to them until someone else buys it.

It ain't real special and it costs them a fortune.

[Amelia] (17:17 - 17:23)

Yeah. And it's, you know, illegal works and suddenly they're trying to sell their house and- Delays.

[Frank] (17:23 - 17:27)

Delays. You can't go buy the next house and people are ticked off and yeah.

[Amelia] (17:27 - 17:28)

Yeah, big problems.

[Frank] (17:29 - 17:30)

Yeah, it's not pleasant.

[Amelia] (17:30 - 17:38)

No. All right. I guess the take home point from that was- 

[Frank]

Same as every time.

[Amelia]

Same as every time. Do your research and consult the professionals.

[Frank] (17:39 - 17:39)

Investigate, yeah.

[Amelia] (17:40 - 17:40)

Yeah.

[Frank] (17:40 - 17:46)

Do it properly, you can make some good money out of this stuff. Or extra space in your house. Or granny can move in.

[Amelia] (17:47 - 17:57)

That's right, a family member- Just put granny in the shed. 

[Amelia]

Yeah, yeah. And I mean, they come out pretty good these days.

[Frank]

You know- Oh yeah. 

[Amelia]

You know, you can get some pretty fancy ones.

[Frank] (17:57 - 18:04)

Oh, oh look, people do beautiful jobs of it. Yeah, there's no doubt about it. When they're done properly, because then they're an asset.

[Amelia] (18:06 - 18:11)

100%. All right, we might wrap it up there, folks. Thanks for listening to the Building Design, Prime Time Podcast.

[Frank] (18:11 - 18:11)

Catch ya’s later.

[OUTRO] (18:21 - 18:24)

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