Two Story House - Top floor rented out separately to bottom one

Discussion in 'What to buy' started by NoobieProp, 3rd Dec, 2021.

Join Australia's most dynamic and respected property investment community
  1. NoobieProp

    NoobieProp Active Member

    Joined:
    6th Sep, 2021
    Posts:
    35
    Location:
    Sydney
    Hi all

    Quick question - I'm inspecting a property tomorrow that is a two-storey house where both the top and bottom floors are being rented out separately to different people.

    Does this mean the owners have gotten council approvals and then made sure both areas have their own kitchen, toilet, entry etc.?

    Are there any specific questions I should ask to make sure that this is 'legal'?

    Cheers
     
  2. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    5,373
    Location:
    Melbourne
    You need to ask the Council.
     
    NoobieProp likes this.
  3. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    11,125
    Location:
    Melbourne
    Check with council.

    The Y-man
     
    NoobieProp likes this.
  4. My House QLD

    My House QLD Well-Known Member

    Joined:
    9th Aug, 2015
    Posts:
    1,316
    Location:
    Brisbane
    Take a tape measure and check the ceiling height is 2.4m downstairs in the bedrooms a living areas. Don't trust the agent to tell you what it is... If it's not 2.4m it's almost certain it can't be legally rented.
     
    craigc and NoobieProp like this.
  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,823
    Location:
    Perth
    2 tenancies in one dwelling with a horizontal division (ie one above the other) will need to adhere to STRICT fire separation regulations - just like apartments do.

    It is not an easy thing to do on an existing house and so there are many dwellings out there which are illegal but people have been renting out.

    There are 2 issues
    1. meeting the building codes
    2. does council allow 2 different dwellings on the block
     
    NoobieProp likes this.
  6. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    12,201
    Location:
    Brisbane
    Third issue is if someone is renting them out separately, and they aren't legal, and something happens, your insurer likely will not cover you. Huge red flag!
     
    Westminster likes this.
  7. NoobieProp

    NoobieProp Active Member

    Joined:
    6th Sep, 2021
    Posts:
    35
    Location:
    Sydney
    Thanks for the feedback (and everyone else)! Seems like a bit too much of a hassle to deal with so I'm personally passing on it.