Advertising rental with car space (not on title, but private agreement).

Discussion in 'Property Management' started by Richard Feynman, 30th Sep, 2013.

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  1. Richard Feynman

    Richard Feynman Mortgage Broker

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    Anyone got experience/input regarding this scenario?

    - Purchase IP from owner who has negotiated a private arrangement to rent and use the car space of another resident. Car space is not on the title of the IP.
    - Negotiate with other resident to retain the same use of their car space
    - Advertise apartment for rent, including car space (any legal issues?)
    - Charge market rent for IP w/car space

    Thanks in advance.
     
  2. Scott No Mates

    Scott No Mates ...and people wonder why?

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    you can't lease/sell what you don't own. so if the owner of the parking space doesn't give you permission to use the parking space you can't use it. If you want it get an agreement in writing.
     
  3. Richard Feynman

    Richard Feynman Mortgage Broker

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    Sorry, I mustn't have been entirely clear.

    I'm not asking about using a car space without permission. I'm asking about continuing an agreement with someone to use their car space, and putting a tenant in a rental who will have access to the agreed car space and advertising the rental as "with car space".
     
  4. brahms

    brahms Member

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    just need to have it in writing. hate to see how a false and misleading claim would go if it came to the car space 'arrangement' being retracted.
     
  5. Scott No Mates

    Scott No Mates ...and people wonder why?

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    The agreement with the current owner is quite likely to be personal and not transferable, so you will need to get a new arrangement with the owner of the parking space which will grant you the right to use the space or any occupant of your unit. (The current agreement may not permit assignment, subletting or use by other people).
     
  6. Terry_w

    Terry_w Member

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    An oral lease could possibly be assignable, but leases for land must be in writing to be enforceable.

    You should enter into a written lease with the car park owner.
     
  7. Richard Feynman

    Richard Feynman Mortgage Broker

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    Thanks. I always intended on having a written agreement in place. My only area of concern was if there were any legal issues in advertising the place as including a car space (simply because it's by private agreement, not on the title).

    I'll be interested to hear how much per week I'll be up for for the space.
     
  8. brahms

    brahms Member

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    just disclose the fact that it is a written agreement with a third party, and that this agreement would form part of the overall letting agreement ie. tenant to sign they understand terms / conditions and agree to comply.

    upfront and documented = no hassles later on :)
     
  9. mattysavager

    mattysavager Member

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    Please also be careful that your agreement with the owner of the carspace cannot be terminated without notice, or with a notice period shorter than the lease on the unit and carspace combined.

    If you suddenly get into a dispute with the owner of the carspace and the agreement to let you sublet it is revoked - you cannot then simply take it away from your tenants.

    If they are paying $500 per week for a unit with a carspace and then the carspace becomes unavailable to you, you would be liable to reduce the rent accordingly or provide alternate accommodation for the car at your cost.

    Matt