Renting car space seperatelly - EC says its not allowed

Hi Guys!

I have purchased a unit in the North Sydney area, and was told by the EC that renting my carspace seperatelly is not allowed, even tho there are no by laws against it, they say the council itself doesn't allow to rent car spaces to people not actually living in the complex (!?), which to me seems very odd.
Their reason is security (everyone can access the building from the basement, all cars share the same secure area) which I understand but with respect I bought the unit for investment and intend to make money. the tenants don't use the carpark and probably wouldn't mind me renting it out if I asked them politely.

Does anyone know what the strata law says in the matter? is it really something that is imposed by council?

As a side question, I am curious to know how much does an apartment with carspace (inner city with parking restrictions) fetch compared to an apartment without one?

Cheers

Guy
 
No having a Unit on the North Shore, I can not comment on the feasabiltiy of renting out your car space, or the legalities of such, however, I would presume that you leased this unit out, complete with car space.

Regardless of the fact that the tenants don't use it, it would be unethical to now rent the space out to another. What happens if the tenant buys a car? Where do they park?

If the terms of the lease stated that there was no car space, then it is a different story.
 
You will have to look at the owner's corporation rules. They will state the rules around the car park for the complex. I previously had an apartment in which the same rules applied (Sth Melbourne).

I also owned another individual car park separate title in the same complex, and was restricted to rent it out to only tenants in the same building. Not sure how they really could monitor that to be honest.

This is an educated guess but if you were (and others) were to rent out your car park to other individuals (not tenants), that would IMO change the nature of the car park to a commercial operation, which would to me seem in contradiction to the planning rules that the council would have granted the subdivision ie residential development.

Then not sure if you would then be technically subject to a car park levy, if the property was in the car park levy area. I know Melbourne & Sydney have one but the rules and exemptions work differently.
 
Their reason is security (everyone can access the building from the basement, all cars share the same secure area) which I understand but with respect I bought the unit for investment and intend to make money.
"With respect" ;), you bought the unit with the ability to check out the by-laws before purchasing. :) And unless the lease agreement specifically excludes the car park, the tenant would be entitled to any rental income, anyway, as they have the right to exclusive use of that car park (whether they exercise that right or not).

Nor do I think it's reasonable for you to expect to be able to compromise the security of other tenants in the building in order for you (or your tenant) to make a few bucks.

When you buy a property with a body corporate, you lose the right to do as you want. :)
 
"With respect" ;), you bought the unit with the ability to check out the by-laws before purchasing. :) And unless the lease agreement specifically excludes the car park, the tenant would be entitled to any rental income, anyway, as they have the right to exclusive use of that car park (whether they exercise that right or not).

Nor do I think it's reasonable for you to expect to be able to compromise the security of other tenants in the building in order for you (or your tenant) to make a few bucks.

When you buy a property with a body corporate, you lose the right to do as you want. :)

Agree but people do it. Friend of mine has 2 cars and one car space with his unit. He rents a spot in the units next door even though you are not supposed to unless you live there.
 
Why can’t someone rent out their car space?

If the complex By-laws don't disallow the leasing of a car park and the owner, or renter, is not breaking any laws, then how can the Council stop this investment opportunity from taking place.

The argument that the security of a unit complex may be compromised, if you start renting out your car space, is absolute crap! Does a landlord, or Real Estate Agent, need to conduct a public record check on new tenants? No they don't.
So basically Charles Manson could be living in the unit next to you, but Council would have an issue with Mary Poppins renting out his car space.

I think that this growing trend, of renting out a private car park, is a very grey area and that the initial reaction of many Councils is to deter people from doing it. It would seem that they don’t really like the sound of it, but at the same time are not sure why.
Perhaps Councils should look at ways to capitalise on this trend, by means of innovative regulations or levies, rather than being terrified of the very thought of it.

Mick Dunne
http://www.rentmycarpark.com.au
 
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If the complex By-laws don't disallow the leasing of a car park
That's a big "if". :) I agree that it should be up to the body corporate rather than a Council issue, but I can't imagine that every body corporate wouldn't disallow this practise, if/when it was found to be something outside Council's jurisdiction.
Mick D said:
The argument that the security of a unit complex may be compromised, if you start renting out your car space, is absolute crap! Does a landlord, or Real Estate Agent, need to conduct a public record check on new tenants? No they don't.
So basically Charles Manson could be living in the unit next to you, but Council would have an issue with Mary Poppins renting out his car space.
I take your point, but that's not the logic, Mick D. :) The logic that "limiting access to the car park to occupants provides security" relates not to the fact that the pool of people has been "qualified" as being safe, but the fact that the pool of people is defined and limited is what provides the security. Knowing that you're one of a small known group of people who has access to the area, tends to act as a powerful deterrent to committing crime in that area. ;) I agree, however, that it would be a relatively simple thing to require those people who do rent our their car spaces, to identify the person hiring it, and keep records of who hired it when. Then, in case of an incident in the building, the authorities would still have a narrow pool of people with which to start their search.

There may also be people - particularly those who've been victims of crime - who feel a great sense of security by being familiar with all the people in their environment, even if they don't know the background of those people. Many would find it very threatening to see strangers in what they had thought was a secure environment.

There's also the fact that an occupant is more invested in the security of the building than a car park renter is. Some complexes have doors that you have to "zap" to close, rather than closing automatically. If the car park provides access to the building, somebody who has everything they own in the building is going to be fastidious about closing the door when they leave, whereas a person who's renting the car park may not be quite as conscientious - particularly if they're leaving at the end of a long day.

Having said all that, I think in the vast majority of situations, security isn't significantly compromised, and personal preferences could be accommodated by making the complex's policy on this issue clear to prospective tenants/purchasers. The use of all those "otherwise unused" car spaces could be a huge benefit in alleviating parking congestion. It's certainly frustrating to drive through areas where parking is a nightmare, and see all those empty car spaces!
 
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