We have just bought a duplex on a busy road with professional offices next door. Can anyone tell me, is this termed commercial property if we get an approval to run consulting rooms there? What's the norm for leases in that instance, and also would it bring more rent than a normal unit rental? There's plenty of offstreet parking.
Check with council what the zoning is there and what is permissable. In the event that yours is zoned resi and you have offices next door, you may have a case to apply for some permitted change of use to your duplex as there is precedent next door to yours.
Best check with a town planner at the council for permitted use and and restrictions.
Does it cost anything to check with town planner? How to organise it?
any idea?Thanks Micheal 888 I'd already done that by phone. Yes it's zoned resi but is open to applications for professional consulting rooms. And g_o_m, on another property in Qld I simply made an free appt with the town planner and showed her the various ways we could subdivide a property and she showed me which would be approved, should I apply. We did, and it was.
I was wondering what professional consulting rooms would bring, as against "normal" unit rent, and whether this would attract GST?
Go here:
http://www.realcommercial.com.au/
put in the criteria and compare the asking rent for professional rooms with the asking rents on duplexess in that area. Also ask local rea's what they perceive the difference to be. Depending on the lease strucutre all (or most) of the outgoings should be payable by the tenants of these potential professional rooms, thereby increasing your return beyond what a resi duplex would return especially on a main road.
If you or the entity that owns these duplexes are registered for GST and you receive commercial rent, then you would charge GST. If you are not registered, even though it may be commercial lease, you do not, unless you have such income over $50,000 p.a. (I think). Please double check that with your accountant.
g_o_m, there is no fee to ask questions of the council town planner, however if you engage a private firm, obviously there would be fees payable to them.
Good luck with it RubberduckyAU. Perhaps post back your research findings and if indeed you were able to extract a higher and better use from your duplex purchase.
Is there much you would have to change inside to reconfigure them to what you are proposing? Also what is the car parking requirements of that particular council?
Is there much you would have to change inside to reconfigure them to what you are proposing? Also what is the car parking requirements of that particular council?
We've bought it as a duplex as it's bringing a good return 8% but looking to twist it. Nothing would need reconfiguring, but have yet to learn the parking requirements. However, it can currently take 6 cars so probably not any worries. I am sure the wheelchair access etc would need to be created though. Will let you know how we go with it. Won't get to see it til late March when we fly in.We've seen the property and reconfiguring isn't needed (as I understand the word) but the kitchen in one would need to become the reception area, and a kitchenette created in the laundry for staff. In the other unit, it would probably need a room divider of decent quality dividing the kitchen off from the lounge (future waiting room) and a reception created. What else is needed to create medical practitioners rooms or professional consulting rooms? I am thinking cliplock flooring or similar throughout would be advisable? Where does one go to source decent reception stuff? I figure we need to provide that rather than the tenant? This is uncharted waters for us so would appreciate any advice from those who have been there before.
I checked and the improvement in the rent is quite dramatic, from previous 410 (combined) to a potential 700. Not bad for changing a kitchen! Where would we go to learn what "normally" is in a lease for professional consulting rooms? And I am assuming (although whenever I do that I get into trouble!) these rooms would bring a longer lease, ie 2 years or more? Thanks RD
Hello RD
Why don't you find out who is managing the professional rooms in the property next door to you and go and have a chat with them. They could tell you everything you need to know including give you an opinion of whether there is demand in the area for more.
Good luck
ElkaHi Elkham, theirs are owner operated but we checked with another agent who is not the selling agent and yes there is demand. I didn't ask how much but that is a good question to ask. It's also near a "medical uni" type facility which to our way of thinking would have a steady stream of newbies looking for their own place, driving past each day. Is there a thread on here that gives information of what a commercial lease contains or needs to contain? We need more information. Hubby thinks we'd just let the units out and let the tenants do the refurb, but to my way of thinking, we should at least change the kitchen to a reception area to create value in their minds? What is the conventional thing to do?
rd, rip the kitchen out but go see a commercial agent first or actualy go see a few com agents first and see what they have to say. as for doing a refurb normally the tennants fit it out to how they want it. but it realy does depend on what the property looks like today
Thanks Keiko. Both kitchens are nice and modern but likely only one would need removal. Will let you know how it goes.
There are standard form leases out there issued by each states' law institute.
For example in Victoria: https://www.elawpublishing.com.au/samples/107.pdf
(the site has sample commercial leases for all states)It appears this all occurred a month ago. What's the update on your project? I've seen consulting practices which operate on a shared secretaries. Similar to that of virtual offices and serviced offices. Seems like a decent idea, but I wouldn't know enough about the subject to say whether it'd maximise return or not.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
