B4 - Converting Your House into Multiple Dwellings
If your house is big enough, you could convert it into two (or more) dwellings to generate some more income.
For example, you could convert a part of your house into a separate flat with its own facilities and entrance.
- You can live in one part of the house and gain income from the new dwelling.
- A family member or a live-in carer could live in the new dwelling, to be closer to you when you need help.
- Dwelling conversions require a substantial input of money, not only for the building work but also for council fees as well as legal
and professional fees, for example, designer, engineer and surveyor fees.
- If you decide to rent the new dwelling, you would be a landlord, with the obligations and responsibilities of that role.
What do I need in order to take this option?
- Your house must be physically able to be divided into two dwellings.
- You need to take the time to thoroughly investigate the benefits, pitfalls and requirements of the option for your property (see Homework below).
- You will need technical advice on making structural changes to your home.
- You will need funds to undertake the work.
Could this option limit my future choices?
Yes, converting your house into two or more dwellings will affect its future sales value. This may have a positive or negative effect, depending on the
conversion design and the property's legal title status.
You must ensure that any building work meets the building code requirements to avoid problems when it comes time to sell it.
Before you commit to converting your home, it is essential that you seek information from your council about residential development
possibilities and rules that will apply to your property.
It may pay to engage a private building inspector to assess what exactly would need to be done and potential costs.
You will also need to deal with a number of legal and technical issues:
- Councils have rules about how you may or may not alter your dwelling. There are also building and resource consent requirements as well as subdivision and development fees
- Legal title
- Vehicle access and parking
- Provision for separate utilities for each dwelling, that is, power, sewerage and water
- Tenancy legislation requirements
For more information