Can I rent out the house but not the backyard?

So Ive got two houses next to each other. My ppor and a rental.

The rental has a 1600m2 block. Big front yard.

What I want to do is put up a fence at the back of the garage so that the tenants cannot use the backyard from that point on. Reason being is that I want the big backyard as it backs onto my ppor and I can extend my yard into the rentals yard.

And even with that much yard cut off the tenants will still have a 900m2 block.

So can I do this legally?

Can I put an anexture in the tenancy agreement that states they are renting the property up until the back fence and then no further?

Or will I have to do something more permanent and subdivide off the portion of the backyard and combine it to my ppor land?

I know it probably sounds silly. But Id get no extra rent for renting the house with a 1600m2 block instead of a 900m2 block. So why not join the backyard to mine so I can enjoy an even bigger yard?

Its brisbane city council low density residential.

Any help is appreciated.

Thanks

Tim

 

You can rent the property but not all the backyard certainly. Just make it clear on the lease. Some LLs exclude renting a separate garage for example. So no problem doing it.

 

Sweet! Thats awesome.

Thanks

 

Always best to make it clear in the lease but probably not necessary. It's not like leases include the block mesaurements. A fence would, in 99% of cases be enough to show the tenant what they're getting.

 

Really? I would bend over backwards to make it clear on the lease, including having a site plan attached to the lease if possible.

It would go towards stopping any issues down the track.

 

Yes, really. I said best.

How many leases include a site plan? Virtually none.

 

Leases don't generally include a site plan because they are generally for a whole lot. I have seen part lot leases and they generally include site plans. I can't recall any that didn't.

@Tim86 it makes a lot of sense to me. We have a renovated house on a 900sqm block and tenants complain about the maintenance.

 

Good point! The extra land would probably put off a lot of prospective tenants.

 

That's what i initially thought to! As long as you put up a decent fence before advertising and showing the tenants wouldn't be any wiser about the extra land

 

Just put it in the lease.

I do this all the time for my CIP for carparks, amenities, open spaces etc...

 

You would create a larger CGT exempt piece of land if its fenced correctly. Read the ATO info below

The CGT Main residence exemption applies to adjoining land ...Can be one or multiple titles. Of course apportioning the IP into two sections may be complex and require valuer assistance.

One of my former clients did this with a waterfront Pt Piper lot. He owned two lots and rather than fence them off he did the opposite so he could extend the exemption for several years before he sold the lot. Also saved land tax !!

Dwellings, adjacent land and associated structures

Hows that for a tax tip !

 

Every lease & licence that I deal with (not residential).

 

Residential is the topic.

 

We did this with a development block at Wynnum without putting up the fences - it was to give us the option of working on the rest of the block. Just a site diagram of what they are leasing - if we do something we would then put up the fences.

Given the size of the blocks would you have the option of building a granny flat on your land with the access coming from the neighbor ? Not sure about the BCC rules but might be possible to let if it is on your PPOR.

 

With a fence erected the prospective tenant won't even know that the seperated land should be included with the leased property.

We have 2 properties back to back with one an odd shape but very large. We needed to erect a carport in the smaller property so we just moved the fence and build said carport including concrete slab. Neither side is any the wiser.

If we ever sell then we will need to restore the correct boundaries.