Renting rooms in an illegal duplex?

Question

What would be some of the problems that may arise with trying to rent rooms in a property that has been illegally converted into a duplex? It was a 2-story sfh that now has a unit on the bottom and a unit on the top, but no permits were pulled, and it doesn't meet the local requirements to be legally converted into a duplex (needs to be 4,000 sqft and it's only 2200).

Account Closed · Answer

Are mother-in-law apartments legal where this property is?  I'd find out.  Then find out if a mother-in-law apartment can be rented out.

So, it wouldn't be a duplex, but rather a home with a mother-in-law apartment.

Try that angle.

As far as renting out rooms, I would think that would be alright.  You'd just have to be sure you wrote up different contracts for each separate room.  That way, you're not renting a duplex, but you're just renting out rooms.

The problem with renting out an illegal space, is that the contract would then be illegal, and therefore, unenforceable.  But, I don't see that as an issue with renting out separate bedrooms in your building, that happens to have different entrances and two kitchens.  You would have the right to rent out a bedroom in a property you own, so it wouldn't be an illegal contract.  In my opinion.  You'd basically have a boarding house that happened to have 2 kitchens, etc.

Colleen F. · Answer

Yes,  a stove is key to a second unit in areas I have been in as well. Even for a mother in law you are not supposed to have a stove.  Remove the stove and it is no issue in some locations.  I would say there are families where this is desirable to have a  separate entrance and  bathroom.   The mother in law suit is a good angle.  Geez they like big places though 4000 square feet to have a duplex....

P. Martin · Answer

check local ordinances on what constitutes a separate unit. I had a friend whose family got in trouble because the garage apartment had a stove. No stove and it wasn't considered another unit.

Christopher H. · Answer

You will probably be able to rent it to a large family or a group who are already cohabiting, effectively using it as a duplex but signing a single lease.

I own a house in a similar situation.   It's a 3 bed 2 bath house that had a large garage converted into finished space with a separate entrance.  The garage was the correct size for a small apartment but creating a duplex was cost prohibitive.  I rented it as a 4 bed 2 bath to a couple of single mom's who had a successful history of living together.  Now it's used like a duplex but there is only one lease.  You'll find lots of tenants who have unique housing needs and don't fit into the typical 2 bed 1 bath or 3 bed 2 bath units available.  Just keep in mind it may take a bit longer to find tenants and rent my not be quite as much as 2 separate units.

Eric Munson · Answer

Liability is huge including jail time if things go bad(fire etc). Not worth it.

Al Williamson · Answer

@Marcus Isaac you're angling for a roommate situation with a private entrance, private bathroom and kitchen.

Spinning it for cashflow is one thing, setting your lease agreement up properly is another.

Marcus Isaac · Answer

I don't own the property the bank does. Maybe a better question is what can you do with a property that can't technically be a duplex even if you pay for the permits but is already split as one. Is the only solution to convert it back to a sfh?

If all the work is inspected and permitted, but it can't technically be a duplex due to lack of size can you treat it as a sfh and rent the rooms out?

Carl C. · Answer

I doubt you'll find any support here for what you are asking. You're asking for trouble dealing with an illegally converted property. In my opinion, the risk is not worth the reward.

Rob Beland · Answer

Is this question really worth asking? You should reread your question. You are renting out a property that was converted illegally. Do you own it? If you do get the proper permits. If you don't, get the permits in place before you buy it.

Ralph Pena · Answer

Eviction might almost be impossible without the proper paper work. Then maybe fines from L and I, or if anything goes wrong. The lawsuit will already be a loss due to improper zoning usage.... And the list goes on IMHO.