tenant doing capital improvements

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molly
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@molly
Join Date: 2004
Post Count: 3
April 28, 2011 - 9:04 pm
I currently have an investment property and the tenant has asked to do some capital improvements to the home this will be done at their expense so they can run a home day care from home just wondering if any legal complications could arise from giving permission for these improvements not to worried about accounting the tenant would claim expenses against their business so just worried they could have some claim against the home for money spent on improvements
luke86
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@luke86
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Post Count: 470
April 28, 2011 - 11:30 pm
You would need to let your insurer know about this as no doubt your insurance policy does not cover the property if used for this type of activity.
I would also be concerned that the tenant could do some shoddy 'improvements' and then decide in 6 months that they do not want to live there anymore, moving out and leaving you with a property in poor condition that in untenantable with no responsibility to fix it.
Chers,
Luke
MarJac
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@marjac
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April 29, 2011 - 12:05 am
Depending on the actual works/improvements being undertaken, you may need, probably should, obtain consent from your lender. Such changes to the property without the lenders consent could put you in default of the mortgage conditions.
If the tenants intend to run a small business from the property and with such "improvements" the lender may consider the nature of the property has changed from residential to commercial.
I would strongly suggest that you sight and are happy with the plans of the intended "improvements" and that you also have a copy of any Building Contract etc. Also ensure that relative Council Approvals are also obtained to operate a day care facility
As previously advised any DIY changes could be dodgy which may cause issues at a later date
molly
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@molly
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April 29, 2011 - 1:18 am
thanks for the suggestions will do some more homework on it
Scott No Mates
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April 29, 2011 - 1:02 pm
I would be assuming that they are looking @ family day care not a childcare centre. The works are generally of a minor nature & are more oh&s issues like stair barriers, gates etc.
Terryw
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@terryw
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April 29, 2011 - 1:32 pm
What if an accident happens and a kid is injured or killed. I would make sure your insurance covers you for all possibilities.
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duckster
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May 7, 2011 - 12:00 pm
Another thing would be Window Safety Film, Barriers to Kitchen , stairs. A place to place nappies out of children's reach. Secure back yard so kids do not escape. Possibly 50 degrees hot water .
Scott No Mates
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May 8, 2011 - 9:10 am
The liability lies firstly with the tenant (operators of the family day care facility), secondly with council then thirdly the owner. Council will give the requirements to the tenant, docs will visit etc before giving approval to use the house. If you are still concerned, contact the council to check what your liability might be, surely it is not the first instance.