Renting family flats and accessory buildings

[KapitiInvestor]

We are coming across home and income properties, which appear to be upgraded minor dwellings, built originally as family flats or accessory buildings, on sections too small to permit a 2nd dwelling.

What is the legal position if we try an let these independently of the main dwelling?

Thanks

Steve

[ream]

Um...isn't that ILlegal? Certainly is in Christchurch. Quick call to your council will confirm - no need to give addresses.

Eli

[Edinburgh]

What's the problem? This is a common scenario in Rotorua and I have one myself. A house with a minor dwelling on the same section, rented out separately.

[Aston]

What is the legal position if we try an let these independently of the main dwelling?

Thanks

Steve

I'm not sure of the legal implications of doing this but in terms of insurance you can have big problems. I wouldn't do it.

Aston.

[ream]

What's the problem? This is a common scenario in Rotorua and I have one myself. A house with a minor dwelling on the same section, rented out separately.

Hi Edinburgh,

I agree, minor dwellings are fine aren't they, but KapitiInvestor said they were originally built as family flats or accessory buildings. In Chch that would mean they weren't allowed to have kitchens in, precisely (I believe) so that you are only allowed to use them for family members who share the kitchen in the house. We were just looking at putting a sleepout on our PPOR and that's what came up. We aren't allowed to do minor dwellings here.

Eli

[Aston]

Hi Edinburgh,

In Chch that would mean they weren't allowed to have kitchens in
Eli

It seems that each region has different rules. In Kapiti a Family Flat may have a kitchen and be totally independent from the PPOR but it must be intended for a member of the PPOR's family and also must be able to be removed from the property.

Aston

[Wayne]

I thought that under many council rule they were to be removed when they were no longer used by the family member.

[muppet]

Hi Guys

We had a gottage or minor dwelling unit or granny flat or whatever you want to call it.(pictures of it are in the picture gallery somewhere) built.
It has a kitchenette but without a stove, one bedroom and a bathroom. All good so far until the new years rate demand turned up. AND boy did the local council sock it in.
The rates on our property went from around $1200 to around $2100.

The extra in rates came about this way:
An additional Dwelling Rate of $435
extra urban sewerage rate of $243
extra urban water supply of $150
extra waste collection rate of $80

This certainly took the gloss of things.

Initially we paid $55000 for the house. Spent around $41,000 on the granny flat.
Last QV was $143,000

All the same it suits our situation because my mother in law lives in the flat.

Regards

[ream]

Hadn't heard that side of it before Muppet, that's interesting. How d'you reckon they knew to do that - did you get a visit or was it through the permitting?

Eli

[muppet]

Hi ream

Yeah, we got all the relevant permits.
Skyline did the building.
And the mother in law pays rent.

Regards

[muppet]

Hi Guys

Can view pictures at:

http://www.propertytalk.com/gallery/browseimages.php?c=6&userid=3102

Regards

[KapitiInvestor]

Update

Have since spoken to the agent,

Apparently Kapiti rules were changed recently, now the property occupants have to be aquainted, instead of family members.

Agent therefore says that paying rent to a common landlord is all thats needed to legally meet the definition.

Agent also claims that Kapiti doesn,t care, does n't chase up, hence the relaxation

I am going to have to check this with the council quickly, as tender deadline is friday.

P.S. you obviously havent ever tried to call kapiti council ...., that can take 2 - 3 days to get through to someone. Thanks for the help.

[essence]

Kcdc

Hi Kapiti Investor

Nice to see another Wellingtonian PT member.

With regard to "family" in the other dwelling. I have been told conflicting advice (opinion?) from REA's about family living in the other dwelling.

What the KCDC can do, is, if it is proven that the family are no longer living in the second dwelling, they (KCDC) CAN stop the dwelling being used UNTIL family use it again.

I have also had another REA tell me exactly the opposite.

My advise, go visit the KCDC and GET IT IN WRITING from KCDC staff, what Council policy is. Is doesn't matter what you are told at the counter, if it is not in writing, it's not worth the paper it's written on.

Believe me, when dealing with the KCDC, I speak from experience.

Good luck.