1st timer - city shuts down basement suite!

[SharonPrete]

We just bought our first property this October -- a side by side duplex in Killarney. We suited both sides, but before we had moved any tenants into the basement the city served us notice to remove the kitchens. The neighbours have complained and let us know that "they are watching us because it is their neighbourhood". I understand where they are coming from as they have lived there for over 40 years and change is very difficult for many people. C`est la vie! We have rented both upstairs suites (one on a 6 mo. lease the other on a 1 yr.)

My question is what can I do with that basement space in the mean time? Can I rent them out as storage space, or will the neighbours have the right to complain about that? Am I able to offer the space to the upstairs tenants if they want to rent out the rooms in a room & board type scenario? Any input is greatly appreciated.

 

[bluerockgroup]

Take out the oven, install a hot plate surface and provide a toaster oven. Then rent it out at a rate per room rather than as a suite. You can still rent it to the same profile of people, just have a contract that is by the room. A little gray-area treading but a pretty good option to cover the lost rent and recover some of your renovation costs. In addition, chat up your neighbour who called the city on you. You could be the `savior` for them by buying their home if they aren`t happy with where the neighbourhood is going.

Cheers,
Grant

 

[JeffSmith]

QUOTE (bluerockgroup @ Dec 5 2007, 08:11 AM) Take out the oven, install a hot plate surface and provide a toaster oven. Then rent it out at a rate per room rather than as a suite. You can still rent it to the same profile of people, just have a contract that is by the room. A little gray-area treading but a pretty good option to cover the lost rent and recover some of your renovation costs. In addition, chat up your neighbour who called the city on you. You could be the `savior` for them by buying their home if they aren`t happy with where the neighbourhood is going.

Cheers,
Grant

Just wondering if you got a permit to do the basement renos. to turn your duplex into a 4 plex? If you did how could the city have you remove the kitchens?
Jeff

 

[AlanHunt]

You may have a few options

. Is it possible for you to buy the neighbor`s house? If they have been there for 40 years maybe they are ready to move on. 2) Enlist the help of the neighbor. Show them the screening process you use (including criminal checks and lease agreement). My lease has a clause which basically says if the tennant disturbs the neighbors, it is grounds for eviction. Explain that you only want "nice families" for tenants and the neighbor can be the "watch dog". see if you can get them to agree to a 6 month "trial period". If they agree, send them gift certificates to a good restaurant (maybe more than once).

3) raise the rent and rent each side as a 2000 ft[sup]2[/sup] unit. (highly desired innercity should cashflow within 2-3 yrs) - keep in mind capital appreciation will earn you 40-60k per year per unit.

4) good idea to rent as a storage unit, however, your increased rent in step 3 would likely be higher than you would get for a storage area.

5) see if you can get onto the pilot project with the city of Calgary for secondary suites.

6) wait until the neighbor moves, or zoning is changed, or sell in the spring, when the market recovers, as a fully developed home.

Cheers

 

[DennisEpp]

QUOTE (sprete @ Dec 4 2007, 10:41 PM) We just bought our first property this October -- a side by side duplex in Killarney. We suited both sides, but before we had moved any tenants into the basement the city served us notice to remove the kitchens. The neighbours have complained and let us know that "they are watching us because it is their neighbourhood". I understand where they are coming from as they have lived there for over 40 years and change is very difficult for many people. C`est la vie! We have rented both upstairs suites (one on a 6 mo. lease the other on a 1 yr.)

My question is what can I do with that basement space in the mean time? Can I rent them out as storage space, or will the neighbours have the right to complain about that? Am I able to offer the space to the upstairs tenants if they want to rent out the rooms in a room & board type scenario? Any input is greatly appreciated.

 

[DennisEpp]

Bad news, there is no answer that is legal in allowing u to rent it, assuming the zoning is RF1, best always to check the zoning on the property, if it is RF4 you would be on your way

 

[mikecunning]

QUOTE (sprete @ Dec 4 2007, 09:41 PM) We just bought our first property this October -- a side by side duplex in Killarney. We suited both sides, but before we had moved any tenants into the basement the city served us notice to remove the kitchens. The neighbours have complained and let us know that "they are watching us because it is their neighbourhood". I understand where they are coming from as they have lived there for over 40 years and change is very difficult for many people. C`est la vie! We have rented both upstairs suites (one on a 6 mo. lease the other on a 1 yr.)

My question is what can I do with that basement space in the mean time? Can I rent them out as storage space, or will the neighbours have the right to complain about that? Am I able to offer the space to the upstairs tenants if they want to rent out the rooms in a room & board type scenario? Any input is greatly appreciated.


Which neighbour is it? Is their fence or back stairs to code? What? No hand rail...hello fire inspection... Any encroachments? Do they have campers or trailers out back? Does their cat or dog roam free? How many people living in the house - too many for the local bylaw?

Touche!

 

[TorontoRealtor]

Speak to someone locally about the zoning.... the advice that you have received regarding the basement apartment is interesting and likely valid. It is the STOVE, incredibly, that will cause the basement in-law suite to be non conforming believe it or not. Replace the stove with a microwave convection or portable hotplate and the whole scenario may change. You need a professional opinion for your town; could be as simple as a phone call to your real estate lawyer or local broker.... then a call to the city to confirm. Get it in writing.

 

[SharonPrete]

Thanks to everyone for the valued input. For those interested in an update... we decided to play within the rule books. We removed the kitchens... every last bit of them. The city inspector came to the property and we were advised that no cabinets, sinks, fridges, stoves, hotplates or convection ovens were permitted in the basement based on the zoning. My husband had attempted a conversation with the neighbours, but was told that they were watching us in a not so nice manner. We`ve got four young kids, so such hassles just aren`t worth it for us. The inspector told us that our current tennants could sublet the basement space on a per room basis and that they could sublet up to three additional people. We may offer this option to our tenants conditional to the subletters being placed on the lease. When the current leases are up we will rent each side as a single unit, and we may even be able to become cashflow positive.

Thanks everyone!

 

[bluerockgroup]

Looks like you made a great choice. Best of luck in the future with this an many more properties.

-Grant

QUOTE (sprete @ Dec 17 2007, 07:41 PM) Thanks to everyone for the valued input. For those interested in an update... we decided to play within the rule books. We removed the kitchens... every last bit of them. The city inspector came to the property and we were advised that no cabinets, sinks, fridges, stoves, hotplates or convection ovens were permitted in the basement based on the zoning. My husband had attempted a conversation with the neighbours, but was told that they were watching us in a not so nice manner. We`ve got four young kids, so such hassles just aren`t worth it for us. The inspector told us that our current tennants could sublet the basement space on a per room basis and that they could sublet up to three additional people. We may offer this option to our tenants conditional to the subletters being placed on the lease. When the current leases are up we will rent each side as a single unit, and we may even be able to become cashflow positive.

Thanks everyone!