A client has recently asked me about a new purchase of theirs, an odd shaped property with significant backyard space that the tenants aren't maintaining and don't really want. He would like to put one or two 'mobile tiny houses' on the back - effectively trailers or caravans, but they look like a cabin.
It's a cross lease section, but it's his understanding (and logically makes sense) that mobile objects such as this don't need to go on the flats plan, avoiding the neighbour consent issue.
I advised he contact his lawyer or possibly a surveyor to determine the legality, but also thought I'd ask here for my own interest.
He obviously couldn't rent these separately, but could probably significantly increase rental yield on the property if renting to a larger family group, either as additional bedrooms or extra living space. The units start from less than $20k, so even on a $40k one if you could get an extra $100 per week it's a 12.5% yield. Plus, from an accounting perspective they're probably not 'buildings' so would be depreciable; though I'd need to look into that one further.
Has anyone looked into doing anything like this? Any legal blocks? Much upside? What do tenants think?
It's a cross lease section, but it's his understanding (and logically makes sense) that mobile objects such as this don't need to go on the flats plan, avoiding the neighbour consent issue.
I advised he contact his lawyer or possibly a surveyor to determine the legality, but also thought I'd ask here for my own interest.
He obviously couldn't rent these separately, but could probably significantly increase rental yield on the property if renting to a larger family group, either as additional bedrooms or extra living space. The units start from less than $20k, so even on a $40k one if you could get an extra $100 per week it's a 12.5% yield. Plus, from an accounting perspective they're probably not 'buildings' so would be depreciable; though I'd need to look into that one further.
Has anyone looked into doing anything like this? Any legal blocks? Much upside? What do tenants think?
Comment