My question regarding purchasing a home/office property is as follows:
The house would rent for $160 per week and the office would attract another $90 per week. It could be a doctors surgery or small business office. The property is in a Melbourne suburb and I was wondering what the “nuances” (for want of a better word) would be around renting this type of property.
Types of tenants for the office would be
Small business owners
What experiences have people had around renting out such properties, any issues (legal etc) they may have had and getting in new tenants when one set moves out. Is it harder to get tenants? Are the tenants that rent the house the same as the ones that rent the office. I expect that this would be typical, but is anyone doing anything differently?
I know the questions are quite basic, but some assistance on this would be great.
Personally I would see it as a bonus, it will give you $250pw rental return. It may be a bit more work to get some one in but you may come across a tennant that dosent want to move. I suppose that it depends on the layout if you want to get 2 tennants renting out the different parts of the property. If it feels good go for it.
I have read this as meaning that the property is a residential property with office facilities.
I understand for a business to run from a zoned residential area the local council have to approve and so do the neighbours. Parking becomes an issue – particularly if office is medical – patients waiting – cars parked in street space the neighbours use.
You would need to speak to local council to discuss their requirements to find out their requirements/views before committing yourself to this. If the council is okay about it make sure that you get to know the neighbours and talk to them about what you propose. Don’t let them hear it from someone else.
My experience has been that neighbours will agree to most things if you tell them first and they don’t hear about it from a third party.
It may be classified as a commercial property for finance purposes (but depends on the zone and the lender). They might accept it as a residential property but they certainly would not take into account the office rental income in their serviceability calc.