Expand the monument-protected pavilion in the outdoor area

Hello!

I have been postponing the idea for almost two years now to have a small pavilion in our garden interior finished and rented out as an apartment to a student or similar, in order to partially cover the maintenance costs of the property. The biggest question mark for me is how to carry out such an undertaking (economically profitable). I have already spoken to two architects who estimate very different total costs (70,000 and 120,000 respectively). I also spoke with a small construction company that could carry out the entire interior finishing (quote at 50,000, but excluding architectural services).

The dilemma I am now facing is that I need an architect for the change-of-use application (currently the pavilion is not declared as living space but as a garden house, the garden also counts as an outdoor area) as well as for the building inquiry (the exterior view of the pavilion is under monument protection, but a window is to be installed). This architect would then, of course, oversee the entire construction which would increase the costs. In contrast, the renovation work could also be carried out independently by the aforementioned construction company (probably at a significantly lower price). One of the architects said that due to the relatively small renovation measures an architect is almost not worth it.

To give a better picture, here are again the key data of the pavilion as well as the planned works.

Key data:

- Floor area 18m2, the attic is also to be converted (approximately 12m2 additional area)
- Connected to electricity, gas, and water supply and drainage
- Monument protection of the exterior appearance
- Located in the [Außenbereich]
- In close proximity to the street and/or property boundary
- Possible to set up a parking space

Planned works:

- Installation of bathroom, kitchenette
- Conversion of the attic as a second living level (for bed)
- Installation of an additional window
- Installation of heating (gas boiler)
- Insulation (but: planned exemption from the energy saving ordinance due to disproportionately high costs)

My question now is, which approach would be the most economically advantageous? Does it, for example, make sense to commission an architect only for all the formalities and after the building permit has been approved to switch to a construction company and leave the architect out?

I appreciate any input!!

Regards, Tom

In your place, I wouldn’t ask myself which path is the right one, but whether I should take this path at all.

Since you want to renovate a listed building, in my opinion you can’t avoid involving an architect.

So let’s calculate total investment costs of €75,000. What rent do you get for the 30 sqm in a pavilion in an outdoor area in the middle of nowhere (at least for students this is a disastrous location)? Let’s say €300 cold rent = €3,600 per year. A few non-pass-through costs still need to be deducted and then I simply deduct €1,500 in taxes. Let’s say you have €2,000 left over. That is then a return of 2.6% and you always have a tenant in the garden and have to take care of maintaining the hut.

Is it actually worth it?

P.S. I assumed that you pay everything with equity. If you need a loan, the return will probably drop drastically (if you get financing – the bank will then not focus on the pavilion but on the entire property).

Exactly that thought occurred to me as well. The renovation never pays off. There are more sensible investment alternatives for the money, even in the real estate sector.

Student dorm = garden full of fellow students who grill every evening and after a few years you move out (studies finished), & definitely in need of renovation every time.

Hello Nordanney,

thank you very much for your response and the justified objections!! Since our property is located in one of the most popular parts of the city, on the edge of the forest, and also very central (1.5 km to the city center), I (and the local architects) expect a rent of 500-600 euros. The return would probably be almost twice as high...

You are assuming €20/sqm, okay, that is actually feasible in Heidelberg, but not in a 30sqm shed. That is tiny and at most for students, who in turn do not pay €20/sqm, not even in Heidelberg.

It is clear that the architect here is only confirmed, after all he wants to build and make money himself, what you then do with it is none of his concern.

Incredible what bitter consequences the acute housing shortage in Germany is currently producing.

On another occasion it seemed to me that the name Heidelberg must derive from paganism, the local price expectations are, in my opinion, godless. You can almost move to Munich cheaper.