Homeowners take a slice of the rent, and renters find a cheap place to spend the night
Amid the deteriorating housing crisis and record-high inflation and interest-rate hikes, one company is offering Australian homeowners and rent-seekers a desperately needed second chance for both a boost to their passive income and an affordable place to spend the week.
PennyGranny.com.au was established late in 2021. The Dural-based housing startup’s original gig was to hire out prefab transportable homes as self-contained granny flats, home offices, or temporary accommodation at $230 per week.
Now, PennyGranny.com.au is launching a revenue-sharing agreement which would allow homeowners to have one of the company’s granny flats installed on their property free of any up-front cost and share in the rental revenue. At the same time, the installed PennyGranny flat would Aussie renters a chance at an affordable home – a win-win situation, it suggests.
“Basically, if you have a suitable backyard or rural block, PennyGranny.com.au will take care of all council requirements, deliver a prefab granny flat suitable for your land, install all services such as water and electricity, and even provide landscaping for privacy,” said the housing startup founder and serial tech entrepreneur Michael Doubinski. “We then find a tenant – or tenants – approved by you, and pay you a share of the rent each week.”
Doubinski said the amount the homeowner would receive from the installed PennyGranny flat would depend on the size of the secondary dwelling and the location’s market rental.
But even an additional $150 per week could spell the difference between keeping and selling one’s home – or between making the rent and getting evicted. A study by the Australian National University found 25% of Australians struggling to make ends meet on their current income, while data from SQM Research showed a spike of homes sold at a loss as consecutive interest rate hikes dragged homeowners behind higher loan repayments.
Every installed PennyGranny flat would also add to the shrinking pool of rental properties, spelling out a win-win arrangement for Aussies all around.
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“My genuine hope is that PennyGranny.com.au can offer renters and homeowners alike a way through the current economic crisis without falling into homelessness and poverty,” Doubinski said. “I shudder to think how many Australians who have worked hard to achieve homeownership will be forced to sell or hand their homes over to the banks in six months’ time with the double-whammy of falling house prices leaving many with years of debt.”
Doubinski has been a pioneer of Australian tech businesses for decades. Apart from founding housing startup PennyGranny.com.au, he has participated in the creation of iconic companies such as HotelsCombined, Menulog, and ProductReview.com.au.
