A letter from the council recently came to me pointing out a property I own has an 'unauthorised strata development'. It states that as the owner I need to return the property back to its 'original use'. There is nothing more specific about it and there is no indiction of the time frame with which they expect the change.
A bit of background on this property:
Perth Metropolitan
836sqm
R20 but in the proposed rezoning area to R30, I am hoping this will happen in 2 years
Originally constructed as a large dwelling in the 1970s and I believe at one stage it has been a Vet clinic. But it was converted to 2x 3bed1bath1kitchen residence at some point and this continued to the time of settlement (3 months ago). I continued to rent these out since the purchase.
The dividing wall is not fireproof, there are two letter boxes a) and b) but there is no strata titling, it is a single title.
Purchased by a buyers agent and my understanding is that the council do not chase after this kind of things actively but there is always a small risk of someone informing on me. Now it is on their 'radar' officially, much too soon for my liking.
What might have trigger this:
1. a neighbour didn't like my new tenants or the small clean up job making noise after settlement
2. a tenant (current or ex) - one of the previous tenant was evicted before settlement and one of the current tenant recently enquired about breaking the lease. but didn't put it in writing after being informed by PM about the fees involved. they continue to live there.
3. council knew it all along and something in the system triggered the letter (the sale, bond under 2 tenancies, LL insurance under 2 policies).
What I have done so far
1. have NOT spoken to council, yet.
2. spoken to two town planners
3. spoken to my PM
4. spoken to my buyer's agent
The options after much thinking and discussion
1. do not speak to council, do nothing and see what happens. If anything it buys some time and good rental income.
2. do not speak to council, change the letter box to a single one (make it look like it is converted back to a single dwelling from the street), ask the tenants to share the letter box, do nothing else and see what happens, consider head and sub-lease with the upcoming lease renewal
3. speak to council and see what they want
4. rent it out as a single residence (accept up to 50% reduction in rent) and wait for R30 rezoning to come into effect. Followed by a letter to council to inform them that it has been reverted back to original use.
5. connect the two sides up with an internal door but continue to rent out to 2 tenants by dead lock this door on both sides. Followed by a letter to council to inform them that it has been reverted back to original use.
6. If all else fails, apply for a DA for a R20 group dwelling (500sqm required) and a R20 single bedroom dwelling (250-333sqm with the 'discount' on land required). It would involve re-dividing the big house internally to make sure the single bedroom grouped dwelling side is no more than 70sqm. Probably will end up with less combined rent and the total cost of such a conversion after DA would be close to 20K (townplanner, council and work) I estimate. Then spend something similar converting it back after rezoning to achieve current rent.
I am leaning towards option 1 until it is no longer viable then going to option 3.
Anyone has any good ideas how I should proceed from this point? I am particularly interested in any other innovative options or the reason I should choose one of the above options over the others.
Thank you
A bit of background on this property:
Perth Metropolitan
836sqm
R20 but in the proposed rezoning area to R30, I am hoping this will happen in 2 years
Originally constructed as a large dwelling in the 1970s and I believe at one stage it has been a Vet clinic. But it was converted to 2x 3bed1bath1kitchen residence at some point and this continued to the time of settlement (3 months ago). I continued to rent these out since the purchase.
The dividing wall is not fireproof, there are two letter boxes a) and b) but there is no strata titling, it is a single title.
Purchased by a buyers agent and my understanding is that the council do not chase after this kind of things actively but there is always a small risk of someone informing on me. Now it is on their 'radar' officially, much too soon for my liking.
What might have trigger this:
1. a neighbour didn't like my new tenants or the small clean up job making noise after settlement
2. a tenant (current or ex) - one of the previous tenant was evicted before settlement and one of the current tenant recently enquired about breaking the lease. but didn't put it in writing after being informed by PM about the fees involved. they continue to live there.
3. council knew it all along and something in the system triggered the letter (the sale, bond under 2 tenancies, LL insurance under 2 policies).
What I have done so far
1. have NOT spoken to council, yet.
2. spoken to two town planners
3. spoken to my PM
4. spoken to my buyer's agent
The options after much thinking and discussion
1. do not speak to council, do nothing and see what happens. If anything it buys some time and good rental income.
2. do not speak to council, change the letter box to a single one (make it look like it is converted back to a single dwelling from the street), ask the tenants to share the letter box, do nothing else and see what happens, consider head and sub-lease with the upcoming lease renewal
3. speak to council and see what they want
4. rent it out as a single residence (accept up to 50% reduction in rent) and wait for R30 rezoning to come into effect. Followed by a letter to council to inform them that it has been reverted back to original use.
5. connect the two sides up with an internal door but continue to rent out to 2 tenants by dead lock this door on both sides. Followed by a letter to council to inform them that it has been reverted back to original use.
6. If all else fails, apply for a DA for a R20 group dwelling (500sqm required) and a R20 single bedroom dwelling (250-333sqm with the 'discount' on land required). It would involve re-dividing the big house internally to make sure the single bedroom grouped dwelling side is no more than 70sqm. Probably will end up with less combined rent and the total cost of such a conversion after DA would be close to 20K (townplanner, council and work) I estimate. Then spend something similar converting it back after rezoning to achieve current rent.
I am leaning towards option 1 until it is no longer viable then going to option 3.
Anyone has any good ideas how I should proceed from this point? I am particularly interested in any other innovative options or the reason I should choose one of the above options over the others.
Thank you