Dual Living, Requirements to Rent out Legally

codinghelloworld on 24/09/2018 - 14:59
Last edited 24/09/2018 - 18:05 by 1 other user

Hi everyone,

I am looking to buy a house which has 2 kitchens and 3 bedroom, there is another empty room which can be transformed to another bedroom. So basically it can be separated to 2 small houses (ground level and first level), each has its own kitchen and 2 bedrooms, living room. Initially my kids can live with their parents but in the future, they can have their own places. But first, they are not old enough to live independently. I am thinking about rent the ground floor unit out.

So my question is:

  • What should I concern if I want to rent ground floor unit? At first, I only think about separate electricity meter box, water box. Can I divide the address into 1 Excellent street to 1 and 1A Excellent street. I think I should contact council about separating electric meter box, water box and post address, is that right?
  • What happens if the council refuse my application to these things? I think dual living is relatively common in Australia, so maybe others have their own experience to deal with these issues.
  • If the council approves my application, I can rent other unit out. Which procedures I should know to prevent me from being sued in future? At the moment I just think about landlord insurance. Is there anything else?

Thanks

Home & Garden

Comments

  • hawkeye on 24/09/2018 - 15:08
    +3

    Going to need a firewall for a start.

    • codinghelloworld on 24/09/2018 - 15:13
      +1

      You mean firewall for internet?

      • [Deactivated] on 24/09/2018 - 15:14
        +1

        Yes and a vpn

    • hawkeye on 24/09/2018 - 15:52
      +1

      Yep all of that and because the properties become 2 they will have 2 rates notices they're not allowed to touch each other without a firewall so any timber can't penetrate into the other boundary so raising the house between floor joists and install firecheck.
      Probably have to change the upper floors plumbing drainage to copper as well.

  • Presence on 24/09/2018 - 15:23
    +6

    You'd be best just casually renting to housemates with an agreed formula for calculating bills.

    Sub dividing an existing property isn't easy. I think you'd need to speak to an architect, maybe a surveyor.

    • codinghelloworld on 24/09/2018 - 16:10

      Thanks. I think formula by the number of persons live in the property will drive a lot of people away, since one unit probably use more resource than other unit.

      • Presence on 24/09/2018 - 16:18
        +3

        How else do you think literally every share house in Australia does it?

        • codinghelloworld on 24/09/2018 - 16:22

          I know, I stay with shared room before, but I saw that works with short term stay people, like single worker. This is a big unit with 2 bedrooms so I am looking at long term renters, like family with kids. This area has good schools too.

        • HighAndDry on 24/09/2018 - 16:36
          +4

          @haisergeant: Look at your current usage over the past few (6?) months. Give your tenants an expected usage figure and add that into their rentals so that the agreement is outgoings-inclusive, subject to change if there's significant departure from estimated usage.

          Done. Believe me - tenants like the stability of a set rental each period, instead of rent+outgoings, because it's easier to budget for.

  • [Deactivated] on 24/09/2018 - 15:24
    +1

    You are talking about subdividing your house, it's not simple or cheap and also just as difficult to go back if you change your mind in the future. I'm not sure this is a good idea.

    Look for someone who specialise in subdividing in your area and have a chat with them to get your head around the costs involved.

    • HighAndDry on 24/09/2018 - 15:52
      +2

      I'm also pretty sure OP's proposal doesn't fit any of the requirements for a subdivision, in basically any form, either. OP also doesn't need to subdivide it to rent it out.

      • codinghelloworld on 24/09/2018 - 16:13

        You sure I dont need to? Because I think tenants prefer separate bills, they pay for what they use. It is also much better for me in future because kids have to pay on their own unit.

        • HighAndDry on 24/09/2018 - 16:34
          +1

          No. Whether anyone prefers outgoings to be measured separately is exactly that - a preference and not necessary. Though that aside:

          it can be separated to 2 small houses (ground level and first level)

          You can't subdivide that. Literally won't be legally possible. You can install separate meters if you want, but how many weeks and how much extra rent will those costs take to be paid back?

          It is also much better for me in future because kids have to pay on their own unit.

          ?

        • [Deactivated] on 24/09/2018 - 17:44
          +2

          Tennants don't prefer seperate meters landlords do. If someone is paying a flat rate then they don't care they will just use it like it is free.

          You can put private meters in and charge them accordingly, many stratas do this. Of course it may not be simple depending on how the services are distributed through the place.

  • HighAndDry on 24/09/2018 - 15:34
    -1

    None of that is required. So long as it's big enough (which it will be seeing it's an entire storey), and you have a rental agreement, and you're declaring the income, that's all that's necessary.

    • codinghelloworld on 24/09/2018 - 16:15
      -1

      What I concern is the bills. Because tenants prefer separate bills :(

      • HighAndDry on 24/09/2018 - 16:31
        +2

        Then separate gas/water/electricity meters is all you need. And ime, tenants prefer outgoings inclusive rental amounts; usually it's the landlord who wants tenants to pay separately.

        • codinghelloworld on 24/09/2018 - 22:39

          Good point, will think about the all inclusive rent.

  • [Deactivated] on 24/09/2018 - 15:36

    Just turn it into an Air BnB.

    • codinghelloworld on 24/09/2018 - 16:16

      I run airbnb before, it is too much hassle for preparing new guests, cleaning, etc…

      • [Deactivated] on 24/09/2018 - 16:31
        +8

        I'm sure you mentioned you had free labour, I mean kids.

  • yoonibear on 24/09/2018 - 16:25
    +1

    You'd need to speak with the council first to see if it's possible first. We had a query at work that was almost the same but we referred them to the council as they'll ultimately have the final say.

  • EFC94 on 24/09/2018 - 16:51
    +1

    Despite the many suggestions your plan isn't a good idea, you refuse to accept them. Clearly you've made your mind up about what you want to do.

    • codinghelloworld on 24/09/2018 - 22:21

      I did not say “refusing” or “I dont like this way”. What I did is debate, discuss the solution. Because I did my homework, ask some landlords and RE agents, they all say it is better to separate bills. So I open this thread to know which way is better and how to do that.

  • Noragrets on 24/09/2018 - 23:47
    +2

    My parents own acerage with two houses on the property. Both houses were under the 1 meter box. My parents went through the real estate and rented one of the houses out and they've now been left with a $700 electricity bill because it's in their name and the tenants who have now been evicted refuse to pay. Mind you my parents haven't been to the property since Feb (holidays) so the entire bill was to be paid by the tenants. They're now in the process of getting a separate meter box. I think all up it cost around $2000 but I'm not 100% sure. I think its definetly worth separating them if you do want to rent it out as people aren't always genuine. Contact council and go from there! Goodluck!

  • varunynr on 25/09/2018 - 12:41

    Have you thought about having one tenant pay for the whole bills and share it with the tenant on other floor.

Login or Join to leave a comment
Login Join