Multiple Dwellings, One Title

[Anthonyacat]

Oh wise and benevolent PropertyTalkers...

I am investigating a property that has three dwellings on a single title. A bungalow, and a two-story building that has as far as I can tell always been two separate dwellings, rather than an afterthought conversion.

At present, the two-story building is let to two separate tenancies, while the bungalow is being used as a PPOR.

Is there anything I would fall foul of by buying and renting all three out to separate parties? I personally can't see how this would be any different legally to a house-and-minor-dwelling situation, but something in the back of my mind is telling me I wouldn't be allowed to rent these out if I didn't live on site.

Can anyone please clarify for this particular property? And if it's ok, maybe also let me know what the nagging in the back of my mind is referring to - I'm sure there's such a rule somewhere, that applies in some circumstances.

[annie brookes]

I can’t see why there would be any issue simply renting them all out. I have five separate structures rented to five tenancies all on one title for some years now. Never was an issue with building consents etc. when building them or thereafter. the only aspect I can see is if you were living in one and trying to be tricky by claiming all buildings are ppor to avoid bright line tax tests later while really renting out separate structures on the same title. But that does not sound like what you are intending.

[John the builder]

Oh wise and benevolent PropertyTalkers...

I am investigating a property that has three dwellings on a single title. A bungalow, and a two-story building that has as far as I can tell always been two separate dwellings, rather than an afterthought conversion.

At present, the two-story building is let to two separate tenancies, while the bungalow is being used as a PPOR.

Is there anything I would fall foul of by buying and renting all three out to separate parties? I personally can't see how this would be any different legally to a house-and-minor-dwelling situation, but something in the back of my mind is telling me I wouldn't be allowed to rent these out if I didn't live on site.

Can anyone please clarify for this particular property? And if it's ok, maybe also let me know what the nagging in the back of my mind is referring to - I'm sure there's such a rule somewhere, that applies in some circumstances.

what does council property file say? You would need to be careful if renting as separate tenancies if they were not approved and or separated for fire etc....

The one co-joined could be rented out as a separate space if you lived there but not as two separate tenancies unless approved? This might be what was in your mind?

[Re@der]

John The Builder has it right.,
Another thing that I found on the property file was that the building consent was given on the provision that a relative of the main property lives in the granny flat (Actually a separate stand alone three bedroom house.)
I didnt buy and there was a huge cost to getting that clause removed.

[annie brookes]

So am I right in thinking it’s not really anything to do with multiple buildings on one title, but more whether the consent restrictions for a given structure is an issue irrespective of the buildings on the title?

[eri]

there have been cases where a tenant in such a shared title situation have rung up council asking for their own wheelie-bin

council have come round, determined there are multiple tenancies housing more than 1 family group and asked the owner for $60,000? of development contributions for the extra dwellings

so it pays to understand what exactly the local council has on record and how flexible they are in interpretations

not that you're likely to ever get anyone at council to give you the binding advice you need

[annie brookes]

Hmmm good point. Thinking of my own situation I built with consents paid and paid again for development contributions for the increased household units so again in my mind it comes back to whether the consent is valid not number of buildings on title. But good point about checking consent is there for current use.

[John the builder]

Hmmm good point. Thinking of my own situation I built with consents paid and paid again for development contributions for the increased household units so again in my mind it comes back to whether the consent is valid not number of buildings on title. But good point about checking consent is there for current use.

yes but you dont need approval to rent out a house. Council cannot impose conditions such as family members must use the property although they might be right to place a waring that" separate household is not approved"

a granny flat pertains to same family but members of same household also applies. This is why owner plus flatmates is acceptable but separate tenancies may not be.