Granny flat, self contained accommodations

[SmileSydney]

I'm currently looking at an IP (house in Ryde, Sydney) that might allow 2 or 3 tenants. It's a 6 bedroom, 4 baths, 2 car. The accommodations are:
- Upstairs main residence of 4 beds, 2 baths, 2 cars: Suitable for family
- Smaller downstairs 1 bed, 1 bath: Suitable for student, shift worker e.g. Nurse
- Larger detached self contained 1 bed, 1 bath: Suitable for young professional, rented out to tenant who is happy to stay.

If I were to purchase, I would not live there. I would only seek to maximise rent.

My question is how others have found managing such an IP in terms of:
- Tenant selection.. Any thoughts on the type of tenants that would work?
- Tenant relationships with each other and minimising disputes. This IP has fairly separate living spaces, each with its own entry, kitchen, bathrooms, laundry. Should I worry there will be issues or are they generally self-managing
- Provision of utilities. I don't believe there is separate electricity, water, telephone. How can I find a practical way to share services or can I get the utility company to split the services?
- Are there other challenges with managing multiple tenants on a single block? Any tips, thoughts, stories good or bad?

 

[neK]

You should first check to see if what is done is legal.
Second of all, I don't think there is such thing as tri-occupancy.

Everyone loves maximising rent... but at what cost?
What if the person downstairs sets fire to the kitchen result in death or injury to the people above? Who's responsible for that?

 

[Ideo]

You cannot legally have two secondary dwellings on the one property. You can only have the main dwelling and the secondary dwelling.

 

[travelbug]

As oithers have said- it wouldn't be legal. Well maybe the granny flat and house are but not the under house.

So basically if there is a problem your house insurance will not cover you.

If someone is injured you lose EVERYTHING you own if they sue.

People do take that risk.

Up to you.