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  • Tiny mobile house/room

    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?
    AAT Accounting Services - Property Specialist - [email protected]
    Fixed price fees and quick knowledgeable service for property investors & traders!

  • #2
    I asked Christchurch Council. I got 2 phone calls. The first said it's a building which needs resource and building consent. The second was adamant it's a vehicle and doesn't come under their jurisdiction. I got the second reply confirmed by email.

    I think it's a grey area that no one is entirely sure of, only time will tell. If your client is in chch, there's lot of options for minor dwellings, especially under the new proposed district plans.

    I'll be spending $100k approx on a 2 bed house for the back of a section. All legit, able to be rented to anyone, uses up otherwise wasted land. No subdivision necessary.

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    • #3
      Originally posted by andyp2010 View Post
      I asked Christchurch Council. I got 2 phone calls. The first said it's a building which needs resource and building consent. The second was adamant it's a vehicle and doesn't come under their jurisdiction. I got the second reply confirmed by email.

      I think it's a grey area that no one is entirely sure of, only time will tell. If your client is in chch, there's lot of options for minor dwellings, especially under the new proposed district plans.

      I'll be spending $100k approx on a 2 bed house for the back of a section. All legit, able to be rented to anyone, uses up otherwise wasted land. No subdivision necessary.

      Should have mentioned, Auckland house, Auckland council, mixed urban/ apartments zoning so no density restrictions, but I'm more interested in it from a "are they buildings" and flats-plan issue perspective, as well as any RTA problems.
      AAT Accounting Services - Property Specialist - [email protected]
      Fixed price fees and quick knowledgeable service for property investors & traders!

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      • #4
        Originally posted by andyp2010 View Post
        In chch, there's lot of options for minor dwellings, especially under the new proposed district plans.

        I'll be spending $100k approx on a 2 bed house for the back of a section. All legit, able to be rented to anyone, uses up otherwise wasted land. No subdivision necessary.
        Are these options for minor dwellings in Chch something new? Are they moving away from the Granny Flat restrictions (i.e. can only house a dependent in one)?

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        • #5
          Originally posted by Anthonyacat View Post
          Should have mentioned, Auckland house, Auckland council, mixed urban/ apartments zoning so no density restrictions, but I'm more interested in it from a "are they buildings" and flats-plan issue perspective, as well as any RTA problems.
          As far as I've seen on the tiny house fb pages, it's one big grey area everywhere in NZ. No one really knows, it's not been tested legally, councils don't know which way to go.

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          • #6
            Originally posted by ripeka View Post
            Are these options for minor dwellings in Chch something new? Are they moving away from the Granny Flat restrictions (i.e. can only house a dependent in one)?
            Reasonably new. Have a look at minor dwellings in the district plan and proposed district plan.

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            • #7
              Friends of ours did some research for their own purposes recently. Apparently you can buy them 'readymade' on top of a trailer, although he is pretty handy and was going to build his own. As long as they are on a flatbed/ trailer and technically 'mobile' there is no consent required. This was in CHC/ Waimak but the people selling the 'readymade' were operating all over NZ so I presume the rules (or lack thereof) are the same everywhere. I wouldn't be surprised as it's such a new idea/ movement (at least as far as hitting the mainstream goes) and councils aren't exactly known for their forward thinking and responsiveness in these areas.

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              • #8
                Christchurch council published an article about a year ago saying they were going to start clamping down on minor dwellings. Are you going to have any plumbing in it? Toilets are difficult. You aren't allowed composting toilets in areas in Christchurch that have access to the town sewers.

                LJ

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                • #9
                  I asked about plumbing too - he suggested a system he's recently heard of called Saniflow or Sanipump or something. Basically cuts up waste material and pumps it through a little pipe. Gives a new meaning for the shit hitting the fan!

                  Requires electricity (but can be run from a main dwelling) and piping but not 'plumbing'.

                  Don't know how good it is, or legal status in an outbuilding.
                  AAT Accounting Services - Property Specialist - [email protected]
                  Fixed price fees and quick knowledgeable service for property investors & traders!

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                  • #10
                    Originally posted by hawkeye View Post
                    Christchurch council published an article about a year ago saying they were going to start clamping down on minor dwellings. Are you going to have any plumbing in it? Toilets are difficult. You aren't allowed composting toilets in areas in Christchurch that have access to the town sewers.

                    LJ
                    There are plenty of campervan/caravan models that have their own toilets, so I dont see how a tiny house on a trailer (effectively a caravan) would be subject to different rules.

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                    • #11
                      I tried to work this out for a place in Welly but gave up.
                      Free online Property Investment Course from iFindProperty, a residential investment property agency.

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                      • #12
                        Originally posted by Anthonyacat View Post
                        I asked about plumbing too - he suggested a system he's recently heard of called Saniflow or Sanipump or something. Basically cuts up waste material and pumps it through a little pipe. Gives a new meaning for the shit hitting the fan!

                        Requires electricity (but can be run from a main dwelling) and piping but not 'plumbing'.

                        Don't know how good it is, or legal status in an outbuilding.
                        The Saniflow systems are pretty good but not as good as a regular toilet since they use a motorized maceration to chop up the waste , have to sometimes be careful not to use too much toilet paper though the one we had was getting pretty old as the blades were worn down. They are often used in basement toilets as their may be insufficient gravity flow for a regular toilet to work , the Saniflow has a pump which pumps the pureed waste out along a PVC pipe to the drain area. You can buy them in NZ from Wallace Pumps, Auckland. Citywide Plumbing , Auckland do the installation side.

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                        • #13
                          Originally posted by Anthonyacat View Post
                          I asked about plumbing too - he suggested a system he's recently heard of called Saniflow or Sanipump or something. Basically cuts up waste material and pumps it through a little pipe.
                          My understanding, from when I was looking into these a few years ago, was that it still needed to tap into the sewer system somewhere.
                          My blog. From personal experience.
                          http://statehousinginnz.wordpress.com/

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                          • #14
                            Look up the city rules. These aren't actually legal. The article I saw in the Press a while back said they are going to start clamping down on this type of accommodation. They have only been lenient because of the lack of accommodation after the earthquakes.

                            There are tiny cottages you can buy or rent that have plumbing that hooks into existing but I have asked the council about these and they said they would require permits/ resource consent in the same way permanent ones do. Legally there doesn't seem to be any way to add a small house easily but in practice you might get away with it unless a neighbour complains.
                            Why don't you hire one and see what happens? Then if neighbours complain you can send it back. If it all goes smoothly you can buy it later. Look at house me.co.nz for details on renting homes and how to connect to plumbing and waste.

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                            • #15
                              You can do it in Auckland. Often sold as towable cabins. Basically a Caravan. No consents required. Just avoid loos, which you don't need if just using as extra bedroom to increase rents.

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