Power for Multiple Dwellings / multiple tenancies

[simoncoles]

We are investigating an opportunity to purchase a home with a self contained 2 bedroom sleepout. We would want to rent these as two separate tenancies.

How do PT'ers handle power bills in this situation?
(separate meters or one power bill and a "check" meter?) (What costs?)

What experiences/advice do you have relating to power charges/allocation in this situation?

Thanks in advance

Simon

[Glen]

We are investigating an opportunity to purchase a home with a self contained 2 bedroom sleepout. We would want to rent these as two separate tenancies.


Simon

I would check with your local council first to see whether this is even viable.

Maybe different councils have different rules regarding this.

[essence]

I agree with Glen and even go so far as to get the Council decision IN WRITING.

Verbal assurances from Council staff on the front desk, aren't worth the paper they're written on, if the feathers hit the tar.

[drelly]

Why are you suggesting he contact the council?

[Glen]

I agree with Glen and even go so far as to get the Council decision IN WRITING.

Verbal assurances from Council staff on the front desk, aren't worth the paper they're written on, if the feathers hit the tar.

Good point,.....council desk staff are exactly that!,.....they're robots reading from textbooks!

As essence implied, get everything in writing, BUT from someone in a position to do so!

[Glen]

Why are you suggesting he contact the council?

To cover your arse?????

Would it not be better to be safe than sorry?

[essence]

We are investigating an opportunity to purchase a home with a self contained 2 bedroom sleepout. We would want to rent these as two separate tenancies.

Drelly, I think what the point is - there's no good buying this property if the self-contained 2 bedroom sleepout isn't legal, IF the Council were to find out that both dwellings are being tenanted they could in the worst case scenario, ask that the sleepout be demolished.

Simon, you could either pay for a completely separate electricity supply to the sleep out (costs involved expensive??) or use a power check meter. The meter would be much cheaper, but would involve both sets of tenants having to meet and agree to useage and payment.

Would this work?? Or would you have to have your name on the power account and then issue your own electricity invoices to each tenant separately?? Is the hassle of doing that, really worth the effort??

[Hound]

The other course would be to rent both out to the same tenant, with elderly relative/extended family etc. The power arrangement would be up to the tenant.

[Glen]

The other course would be to rent both out to the same tenant, with elderly relative/extended family etc. The power arrangement would be up to the tenant.

You would find that you would get 'bugga all' extra from this. (maybe a few dollars)

The upside is that you would tend to get a longer tenancy from a larger family with no down time between tenants. (Pacific island families would generally suit this type of arrangement).

[drelly]

Obviously it's wise to check if it's a permitted minor dwelling. I was just wondering if you knew of some bylaws that might deny him renting it out to two separate tenants.

I'd go for the separate metering if at all possible. You could include power in the rent but you'd be opening yourself up to lots of problems.

[Perry]

Council verification regarding the legality of the construction,
compliance with resource consent requirements, etc, are part
of due diligence. Electricity reticulation is not. It's covered by
a Compliance Certificate issued by the installing electrician.

Digital check meters are in the $70-100 range, last I bought
some. There are no legal issues that I'm aware of in splitting
the wiring across check meters, but the meters are just one
part of the expense. Circuit breakers and a main switch for
each, etc., will be needed.

There are 'tricks' to this, but that's for a PM, not general
promulgation.

[Mentorman]

Power Question

Ask an electrician to quote to put a check meter on the board for the second dwelling, you shoul read both meters yourself every month and submit them and keep a digital photo for proof , have the power in your name and have the tenants agree to pay you based on above, we do this on one property and it works fine.Is the property in Auckland I can give you my sparks number to quote.

[simoncoles]

Thanks all for your replies and advice.

Potential properties in Auckland. We finding some have power sorted but most do not so wanted to understand our options.

We have seen check meters on some properties and this may be the best option.

Simon