Letting sleepout - any legal/insurance issues?

[Mojo]

Hi all! I have prospective tenants who are a family of 3 plus 2 guys who work for them. There's a 'sleepout' on the property, which is the original single garage with bathroom and laundry area and small room downstairs, large open room upstairs. Really very basic and possibly considered 'barely livable' (there's no window in the bathroom, the ceilings are lower than would meet code of today, and a few other possible problems - altho the previous owner's father was living in it for years). The tenanst saw the sleepout, and would prefer to be able to have one of the guys living in it.

I don't know anything about the legality of letting out sleepouts, and am a bit worried that there might be some insurance or legal issues in this situation? Anyone know what issues would apply here that I should be aware of? Am I legally able to let the house to all of them on one tenancy contract knowing that one of them would be living in the sleepout? How do insurance companies see this? Any information appreciated, have to let them know today what I've decided. I normally would have just said 'no' to the sleepout, but I haven't had much enquiry on this property so would like to try to work things out with them...

Thanks

[Mojo]

I posted this...

in the wrong place didn't I! Should I have posted in 'legal'?

[xris]

Why not make a note on the TA that you have advised thgem that they you the sleepout should not be used to live in because it is dangerous and illegal, and get all parties to sign this.

What they then choose to do without your knowledge is not down to you, is it? Have you not covered yourself?

xris

[Mojo]

Ah, xris...

"have you then not covered yourself?" is the question! I'm not sure how the insurance company or 'authorities' would see that if something happened to the building, or worse if something happened to the tenant - fire for instance! I vaguely remember some talk on this forum about tenants living in garage (apparently illegal?) unbeknownst to the landlord, but landlord being held responsible....? I realize a garage is possibly different from a sleepout, but I'm still not sure on that. My biggest concern is that I would be held accountable if anything 'bad' happened. I'm not sure who exactly I should contact to find out about this, I'll try tenancy services now anyway.

[essence]

Garage

If the garage doesn't have a Code of Compliance, it's not habitable. Just because it has historically been used like that, doesn't make it legal. Please clarify, is it a lined garage with only sleeping facilities or does it have cooking/washing/toilet facilities?

You would probably get insurance for the whole dwelling (house and garage) but should a fire etc start in the garage (without harming anyone, we hope) and it is discovered that there were people living in the garage, I would suspect that the insurance company may use that as a reason not to pay out.

My 2C worth.

[FreezingHot]

I would make sure it is permitted first.
FH