Adding bedrooms is a tried-and-true means by which to increase rental yield. Here’s an example: the median rent for a three-bedroom home in the West Auckland suburb of Henderson is $670 a week*; add a bedroom and you’re looking at $800.

It sounds compelling but adding an extra bedroom (or bedrooms) to existing homes can be slow and expensive. Depending on the size of the room, the build can cost upwards of $50,000. Then you need to factor the expense of a vacant home – tenants won’t want to live in a building site.

This is where Dreamtime Cabins come in. Their starting rate for a sleepout is just $16,495 (3.6m x 2.4m) and there is also the option to create two rooms in a larger sleepout for around $35,000.

It enables investors to add a bedroom for a fraction of the price of building one. And as we’ve seen, extra bedrooms mean more rental income.

The company was founded by Shane Savill 12 years ago, and the cabins are built from New Zealand products, in New Zealand. Savill had building and project management experience due to his work in home relocation and saw the demand for warm and dry housing.

Affordability was key. He kept overheads low and started creating beautiful cabins with an impressively low price. They were snapped up and put to great use for everything from dog grooming parlours to music studios. They were also highly appealing to property investors.

Tailored Fit

The cabins offer property investors a cost-effective means by which to increase yield, they come in a range of sizes, and can be tailored to any requirement.

“We can do ranch sliders or doors. We’ve had people who want us to do custom joinery, bi-folds – we work with a joinery company so people can get the colour they want,” says sales manager Richard Bews.

Their design is up-to-the-minute, and they have the same lifespan as a modern timber-frame house. They also keep their value: a 10-year-old Dreamtime Cabin was listed on TradeMe recently for a higher price than it was built for – it sold immediately.

Unlike some competitors, Dreamtime Cabins use H3 tanalised timber, Expol-X polystyrene insulation, double-glazed aluminium joinery, and have pink batts in walls and ceilings. “They fully adhere to Healthy Homes standards,” says Bews.

The first step is a no-obligation site inspection, then a plan is formulated.

The cabin is delivered on a Hiab truck, and placed on blocks if the land is flat. “If there is a slope, we can give the buyers a foundation plan. They just have to put in half a dozen piles, which is very simple. We have somebody who can do that or, if they have a builder they know, manage this themselves,” says Bews.

The cabins don’t need council consent as they are under 30m². They arrive painted, carpeted, and with a 20m power cable, so once installed they are ready to go.

Quick Turnaround

Turnaround time for cabin production is between four to eight weeks, depending on demand. Customised models can take slightly longer, and range from eight to 10 weeks, but the quality and attention to detail make it worth the wait.

If you want a simple, easy boost to your rental returns, Dreamtime Cabins are a great option. They can be delivered around the North Island (costs will differ according to how far delivery is from their West Auckland base).

*Core Logic data

Visit dreamtimecabins.co.nz, email [email protected] or call 0800 830 880 for more information.