Hi all,
I have come across what i feel to be a GEM for my first IP.
It is in my local area.
Currently being used as a 4 bedder but it 2 storey and could be split into 2 rentals – it has a kitchen / bathroom on BOTH levels, 1 bedroom downstairs, 3 upstairs and living space in both levels!
i spoke with the agent who discussed a few things on being able to split it into 2 rental incomes.
She mentioned we would need to think about the electricity and water because it would come as one bill and we would need to consider a premium on top of the rent to cover this???? I am not sure what this means or how i could go about getting a fair arrangement for all parties?Is there anything else i need to be wary of if i split this into 2 rentals. EG: blocking off stair case for security reasons for each tenant? negotiating parking space and clotheslines into agreements????
Any thoughts appreciated.
THANKS!
I am looking at it this saturday ……
The reason you will have to charge a rent that is "all in" (which will cover the electricity, gas and water) is because the two "units" do not have their own meters. Therefore, it cannot be established who uses what.
You could of course get in touch with the relevant electricity etc providers to understand what the cost would be of getting separate meters installed for this purpose. Otherwise, you'll have to guess how much electricity etc the tenants will use, and charge them for it in their rent.
I recently took a vague look into splitting water. A water meter is about $200 (or $300 for a radio controlled meter if the meter has to be installed in a rear yard or courtyard the meter guy won't be able to get to easily). But then of course there is the cost of the plumber and any materials he needs. eg he might need extra piping. If he has to dig under concrete to get to the point where he has to split the line, that'd be costly. Why don't you get some tradesmen to come and do a quote? Explain clearly what you intend to do. The plumber will need a "line tracer".
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I'd also ring council and ask about whether you'd be eligible for a second set of bins.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
my brother in law is a plumber – quite handy!
i shall see about split electricity meters also.
Thanks so much!
Any other advice appreciated
Could managing it as a share house be an option? Just rent out the individual rooms?
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