House Hacking - Do I have to share backyard?

[Samantha Meyer]

Hi wise real estate experts.  Long time reader...first time commenter (do people say that type of thing here)?

My husband and I are looking to move from our small condo to a two unit property.  The purpose of the move is to (eventually) have more living space, a yard and a garage while having a rental offset some of the mortgage. We've identified one we like - it's a pretty standard 2 flat. We'd live on the main level and eventually duplex down/finish the basement) and rent the upstairs unit.  The building has a little yard and garage in the back. The upstairs unit has little balcony and there is an interior staircase that goes out to the backyard from both units.  This is on the north side in a good area but a bit far from the el/metra (20 min walk). I would assume the area and location would attract someone who has a car and we are obviously going to be picky as we will be sharing a roof.  

If we don't get this one, we'll probably find something similar.  We've never been landlords before so I have a few questions:

- What should we expect trying to rent out something in Dec/Jan...do you think we'll need to price lower?  Would you offer a short term lease or a 15-17 month lease to ensure the lease ends in the spring/summer? OR would you wait until spring and take some time to add upgrades to the rental (thinking an in unit laundry even though there is a shared one in the basement), possibly painting the kitchen white, etc.

- Is it expected that we will share the backyard?  What if we don't want to?  Would that have a significant impact on the rent?  How would we even phrase this in the lease/conversations?  I'd be open to periodic usage if they had a special event, etc. but really want this to be ours primarily. 

- I'm considering not including garage parking in the deal (or not offering it as an add on) for the specific purpose above.  If someone is parking in the garage and thus walking through the backyard I feel they would just assume the backyard is shared.  I'm not opposed to offering a garage spot but I feel I'd then need to clarify about the backyard.  To be clear, I understand someone may be walking through the backyard to exit the building.  There is street parking available.

Overall, I am fine pricing the rental unit a little lower.  The purpose of this purchase is not as an "investment" -- it's to keep our monthly housing costs more reasonable while getting some additional features (yard, garage, space).  

Thanks in advance for your thoughts and assistance.

[John Warren]

@Samantha Meyer you are thinking all of the right thoughts. You didn't mention what town you are in, so there isn't much we can do to help with rentability questions in the winter. Here in Chicago I have always been able to fill units in the winter despite the common sentiment that it can't be done. I found great tenants during the polar vortex two years ago and had no issue with rent discounts, etc. 

As for how you handle the garage and yard, just be very upfront about it. You will need to find a specific tenant who doesn't want those amenities, but it can be done. You also may find that if you get the right tenant, they may end up being more friends than you think and you may be able to share the yard more easily.