Have any developers in here rented a house whilst doing a subdivision development at the back of the property??
Just wondering if you’ve had success doing so and any tips when going down this path.
I plan to allow the tenants full use of the backyard until I start construction and have a clause in the tenancy that allows for the subdivision.
I am offering the property well and truly below market rental as some income on the front property is better than none for me!
Nats12
Done it a couple of times especially where we have purchased a property which has already been tenanted on settlement.
Would suggest you really cover your bases on the Tenancy Agreement requesting the tenants allow you, your subcontractors and agents unrestricted access to the rear of the property without having to give the usual 24 hours notice.
We purchased a property and the tenants who had 60 days left on their lease refused us access to the back garden although they consented to the subdivision. As Professional Tenants we ended up buying them out to get access quicker.
A valuable lesson learnt. Consent does not mean consent to access. Good luck.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Yes, have done it and had no problems with tenants. Definitely put in a clause for access to back of property and that the driveway (to rear of property) had to be clear at all times, but tell them it will be a long time before you will be building.
As approval got closer (and with change of tenants) we put in a (secondhand) paling fence from front of property to front of house, thus isolating driveway and giving them privacy. We put up a temproary chainmesh fence across the block on the subdivision line. We pulled down part of the front fence and laid down a fine tanbark carspace in front of the house and large concrete block pavers from here to front porch, so in effect they had a seperate tenancy and we had the original driveway free at all times. We also put in two planks nailed together in the gutter to make a temporary crossover for them. This was definitely worthwhile as it took about 3 years to get plans drawn up and through councilFern
A friend of mine was renting his refurb project to his son whilst working on the exterior (completed interior first). However his son decided to go and chase money at the mines in Mackay so left him without a ‘friendly’ tenant. He spoke to his next door neighbours, whose son was looking for a somewhere to live. They came to an agreement where the property was rented below market rent for a house of that size, but he has 24 hour access to the exterior of the building and yard, and can enter the house in reasonably daylight hours.
Tenants are happy as they have moved into a bigger property than they had before, owner is happy as he is getting more rent than he was from his son.
Just remember there is no such thing as a standard lease agreement – you can put it whatever you want providing the tenant agrees to it before signing up.
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