Duplex being used as triplex+ basement Apt

[CDM]

Hi,

I have an offer on a multi residential property in Hamilton and when I was doing my inspection the neighbour came up to me and was giving me the scoop on the neighbourhood; he mentioned that there is a community watch program of sorts and that they go after anyone that doesn’t keep up their properties and such. He has had problems with the present owner landlord (lives in the main unit) and is happy to see him leave.

I have a property management company lined up and I intend on taking good care of my investment. I am not worried about that, but I am worried that I cannot predict if there would be future problems with tenants and this guy.



I took his number and called him later for more info and he seem like he was a bit of control nut… during the conversation he mentioned that the property was a duplex several times and I finally asked him why he was pointing this out and he said he just wanted me to know…



The property has been used as a triplex + basement apt for years and I found out it is a registered duplex…. If some how either I or a tenant has some sort of disagreement with this neighbour could he some how get me into trouble or shut down my property?



I have copies of an independent fire inspection as well the units are individual metered so would that mean that somewhere the city of Hamilton has okayed this?

As well what would it take to change the registration to a triplex + basement



I have to finalize this deal with by EOD tomorrow so any tips would be appreciated


TIA

 

[Thomas Beyer]

QUOTE (CDM @ Dec 8 2009, 04:35 PM) ... I found out it is a registered duplex…. If some how either I or a tenant has some sort of disagreement with this neighbour could he some how get me into trouble or shut down my property?
yes + yes

QUOTE (CDM @ Dec 8 2009, 04:35 PM) ... I have copies of an independent fire inspection as well the units are individual metered so would that mean that somewhere the city of Hamilton has okayed this?

As well what would it take to change the registration to a triplex + basement
Ask the city planning department. Possibly major modification to fire suppression/sprinkler system, or ceiling heights or add`l fireproof drywall AND/OR re-zoning depending on neighborhood .. as in a duplex only neighborhood it may be hard .. but depends quite a bit on city`s "mood" ..

Would it make sense as a duplex ?

There is a risk .. and you must weigh risk with potential add`l cost and potential add`l revenue !

More due diligence is recommended .. unless it makes sense as a duplex already and the 3rd and 4th unit is "gravy" !

 

[CDM]

Thanks!

In assessing risk would it be safe to assume that most if not the majority of triplexes fall into this category?

I guess i am asking will this be a common risk that i will run into - just trying to see if walking away just delays me from getting into the same thing eventually

So as long as i manage this neighbour should I be okay on a day to day basis as far as the city is concerned?

 

[housedoc]

QUOTE (CDM @ Dec 8 2009, 09:48 PM) Thanks!

In assessing risk would it be safe to assume that most if not the majority of triplexes fall into this category?

I guess i am asking will this be a common risk that i will run into - just trying to see if walking away just delays me from getting into the same thing eventually

So as long as i manage this neighbour should I be okay on a day to day basis as far as the city is concerned?
What is the current zoning? How is it being taxed?
Does it have legal non-conforming status for the additional units?
4 separate meters indicates more likely than not.
Be sure.
What matters is how the city sees the property, not how the neighbour does.
If there is a history between these people, you can pretty much count on it to continue.

 

[Thomas Beyer]

QUOTE (CDM @ Dec 8 2009, 07:48 PM) I guess i am asking will this be a common risk that i will run into - just trying to see if walking away just delays me from getting into the same thing eventually

So as long as i manage this neighbour should I be okay on a day to day basis as far as the city is concerned?
yes it is a common risk .. and it is also common for units to be shut down if neighbours complain which seems to be the case here !!!

 

[CDM]

Thanks for the advise!!

I am looking into this further... seeing as it is a duplex and I have a fire inspection for the whole building 3+ basement would that mean it has met some legal parameters?

 

[housingrental]

CDM - Check with your fire department but the answer is likely no.
1) They`ve likely inspected under requirements for duplex not additional units.
2) If they did you`ve still not met requirements for electrical or building
3) You still need to meet municipal requirements if it meets safety requirements
4) Also talk with your insurer...

 

[Emil1753]

Buyer beware.

Make sure the numbers make sense as a duplex just in case nosey neighbour decides on being a douche.

Good luck.

 

[luckyluciano]

QUOTE (Platinum @ Dec 10 2009, 10:40 PM) Buyer beware.

Make sure the numbers make sense as a duplex just in case nosey neighbour decides on being a douche.

Good luck.

So....did you buy this duplex disguised as a triplex/fourplex with a problem history?

 

[CDM]

I did.......then had to get out fast!!!!

I finalized the paper work (not closing) and a few days later a bylaw enforcement officer called me saying that he was trying to get in touch with me for over two weeks (I had asked for two extensions to do my due diligence) apparently when I called the city to dig around he had called the selling agent to give her the info and she did not return the call.[/size] It appears that the neighbour had already caused some issues and there is a current file/investigation on what the status of the property should be, the judgment will not be coming for a few months, after my closing date, so my lawyer got me out of the deal

 

[OlegP]

QUOTE (CDM @ Jan 8 2010, 07:40 PM) I did.......then had to get out fast!!!!

I finalized the paper work (not closing) and a few days later a bylaw enforcement officer called me saying that he was trying to get in touch with me for over two weeks (I had asked for two extensions to do my due diligence) apparently when I called the city to dig around he had called the selling agent to give her the info and she did not return the call.[/size] It appears that the neighbour had already caused some issues and there is a current file/investigation on what the status of the property should be, the judgment will not be coming for a few months, after my closing date, so my lawyer got me out of the deal


Good thing! City of Hamilton in my experience does not have a plan to grandfather properties based on the present use. So if the property is not zoned for the use you intend it for (legal or non-conforming are fine), then you always have to be prepared for the type of situation you ended up in. I had exactly the same experience a few years ago, and had to run the property as a duplex.