a new carpark next to my rental

[John boy]

Hi everyone I have been following this site for a while now and recently purchased my first property in Palmerston North (I know). Yesterday I was sent an email asking me to sign an city council approval form giving my neighbour permision to build a car park (since its residentially zoned land they need permission from the neighbours).

I have an old 3 bedroom rental property (house) on residentially zoned land but bordering a mixed residential commercially zoned area. There is a dentist to one side of my property and a large house with a fair amount of land on the other side (the large house backs onto a local real estate agents office).

The real estate company plans to expand their office and has purchased the large house next to my property and would like to use the land for parking, proposing 16 carparks. Cars will be able to enter the car park from the drive way directly next to my property or from road where the real estate office is.

I have been told that the dentist and the other residential property on its other side have already given permission. Before I give permission I am considering how this will affect the weekly rental and property value/salability. I've looked around and asked for advice but the general opinion is that it will probably have no effect (could be positive or negative) and they may apply to have the land next to my property labeled commercial anyway.

Has anyone else here had a similar experience or recommendations that they could share? Thanks for your time.

John

[Keys]

I have been told that the dentist and the other residential property on its other side have already given permission.

After asking to see the permission and getting the permission given to you (or not). Refuse. IMHO

[donthatetheplayer]

Do you want cars coming and going all day right next to your property? What happens in many car parks at night? Do you think this will be appealing to prospective tenants? What sort of security will they have? Will this be good or bad for you? If it is a car park now what next? Would they go multi-level? Once they have a consent for this it may be easier for them to develop further without your consent.

What's in it for you? Can you convert to commercial in the future? Would you want to? Will it increase or decrease your property value? You really need to assess if it is positive or negative for you. This will provide the answer to whether to give consent or object. It doesn't sound good to me.

[John boy]

Thanks for your both of your comments. The only positive I can see is where my property potentially becomes commercial. There are other properties nearby that have kept the house look and gone commercial. But otherwise I only see down and no up. If I sign the documents I'm just making their project easier possibly at my expense.

[Eugene]

Where in Palmerston North is it?

[Grundy]

Seeing as you knowingly bought alongside a mixed use zone I am guessing you are not an absolute nimby.
The good news in my experience is that 2x of my best residential rentals are right in a mixed use zone (gives me future use choice) but its proven a real win / win. The tenants love the fact the neighbours appreciate their presence by keeping a discrete eye on things when the commercial places staff are away and evenings when no unaccustomed parking is allowed. The businesses are always clean, tidy & quiet and evenings / weekends the area is positively tranquil. Only downside depending on the type of tenants you allow is that businesses especially professional rooms etc are utterly intolerant of noise, parties, trash or larrikin behaviour. Frankly this imposition suits me as the landlord nicely.

[John boy]

Grundy I am not a nimby regarding rentals and did check the zoning before puchasing it. To be honest it has potential to be commercial which is one reason I picked it up. And as you say a dentist next door is the perfect neighbor, especially in the evening when everyone goes home. I just didn't consider that the other house next door could be a carpark (my bad). Though the house will remain they say, only the land will be used as a throughfare and carpark so I might be over reacting. As donthatetheplayer says though who uses the carpark at night? Maybe I can negotiate the park to be closed in the evenings. I think I should also ask some questions, regarding the future plans. Eugene do you know Palmerston North?

[Eugene]

Hi John Boy, yes, a little, owned two houses there a long time ago and a family member has a rental. Personally I like Palmerston North.
It sounds as if you have bought very well.

[John boy]

Hi Eugene, then you will know Broadway Avenue midway between Victoria street and Albert street. There are a number of real estate agents, dentists, lawyers offices etc. along that stretch. My place is on one of the side streets. I'm not so sure I bought well, but feel the price was reasonable. I tried in Auckland and gave up after a few auctions, I couldn't see the value behind the prices. Palmerston North has always been easy to rent and hasn't risen much recently. Lets wait and see.

[Eugene]

Fantastic location. Well done.

[Shalodge]

After asking to see the permission and getting the permission given to you (or not). Refuse. IMHO

The car park sounds like it will be a discretionary activity. The requirement to seek your permission does not give you a right to veto the project. It is asking you if you consider that there will be any adverse effects that you consider are more than minor and which can be considered as 'effects' under the RMA. An effect on your property value is not normally an effect that can be considered.

It is a bit rich for folk to criticise the RMA as a slow cumbersome and expensive process when they want to build something and then unreasonably insist on their 'rights' when someone else builds something. The reality is that when a city grows and people build stuff there will be 'effects' on others. As long as they are minor or can be mitigated or avoided then maybe they shouldn't be allowed to stand in the way or cause great expense?

[td91]

Well, it's likely to have an influence on you weekly rental return.

However I'd say you have two options. Sell up - it would be hot property. Lease it, there will be competitors to either the dentist or the real estate wanting to move close.

Leasing it would probably see a better return, plus are they going to care about carparks going in?

[John boy]

I thought I'd update those who were reading this thread. I called a valuer who had done a valuation on my property last year and asked for his opinion. He said that it would have little affect on the property value but if anything it would make the property more likely to become commercial in future years which could be value positive for the whole area. I've heard this comment from several people now. I also requested the signed permissions by the other neighbours (thanks keys for that advice) which I was given.

I also spoke with the consultant proposing the carpark, read the 24 page proposal and found that the carpark will actually be behind my neighbours property so not in view of my property at all. The only downside will be the increased traffic flow in the mornings and evening. So based on all of this I decided to agree to consent also after a little negotiation I managed to get them to replace the fence bordering our two properties as well. I think this is only fair considering their could be increased noise from the traffic. Hope it will be a reasonable fence. Thanks again for everyones opinions.

[Keys]

I also requested the signed permissions by the other neighbours (thanks keys for that advice) which I was given.

Am a firm believer in people having to prove what they say in these instances.