Muti-Income Properties are great for investors, but you need the know
the pitfalls and techniques to manage them for success.
We know the Rules (and the Work-arounds )
The legality of alterations
Many houses were split into separate
living areas in the past: the legality of these
conversions can be a minefield to navigate. For example,
in some areas parts of houses were rented separately when
the rules said that they were not separate units as long
as they did not have a stove. These days the Auckland
Council tends to say that if such a unit has a kitchen
sink, then that is not okay and it must be removed. A
ruling like this could cut an income stream from your
Do you know that if the Council forces you to remove a kitchen sink you still have options to rent it out? Download our Info Pack to see what we would suggest.
You need a manager who understands what is required and how to work the rules. For example, that same property which was not rated separately could be sorted out if it could be shown that the alterations were done before 1991. Yes, you guessed it... download our Info Pack to see what we can do for you.
Dealing with Shared Power & Water
Do you know how to get the wording right so that you can still recover the cost of water rates when a meter is shared between two or more units? Under the RTA you cannot charge for water which is not separately metered. Putting in another water connection for which Watercare will charge you $12,000 $14,000 is not really a smart option. But if you get the wording right, you can still recover most of the Watercare costs from the tenant.
Shared power meters for multiple units are also a difficult issue, but again there are a number of ways for the landlord to recover electricity costs, both approximate, or sometimes even to separately invoice power usage.