Renting out residential house as commercial

Hi property community,

We have investment property that we wish to convert it to commercial like therapist/medical centre. Across us it's a big day care centre so we thought it should be a good opportunity to convert our investment into business premises. This investment house still has a huge loan on it $1M and currently being rent out as residential with very low return $670/week (very old house).

The current zone is residential, what is the pro and cons for converting it to commercial? What is the process for changing the zone? Many thanks in advance.

 

What makes you think that without substantially improving the property on your part that it will be attractive to a commercial tenant? After that, will it get a better residential rent?

 

Do you mean the current use or the current zone? If the zoning is different from across the road, then I don't like your chances. Spot rezonings are generally not supported as good practice.

 

I enquired about doing a rezoning like this early last year, convert 2 resi properties into commercial and give up a part of them as an easement. The town planner I spoke said there is zero chance the relevant council would support this…