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David Fleuchaus
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Unique Rental Conundrum

David Fleuchaus
Posted Feb 6 2021, 14:01

I am about to list a property to rent that was built as building with 2 houses (each with 2 bedrooms) connected only at the roof with a drive-through arch below. This "gatehouse" was originally part of a 4-building estate with 50 surrounding acres. The acreage was developed 35 years ago and the estate's buildings were separated into individual parcels but the gatehouse was sold as one house on one parcel. The zoning is currently SF but was previously AG and so a grandfather clause in the zoning legally permitted the gatehouse to be rented as a multi-unit property. BTW, one of the gatehouse houses was split into 2 units. The gatehouse has 3 separate living areas, 3 kitchens, 3 bathrooms, all in two houses. So far so good, however, the former owner let the grandfather clause lapse when they ceased renting out the two-unit house and only occupied the single family house. They did this for 16 years so the grandfather clause is long gone. When I bought it it was listed as a single family house (with two houses and three kitchens mind you) and the tiny village's lawyer said that the secondary unit(s) could not be rented out. However, before I even saw the "house" I noticed that the village's definition for "family" allowed that a "family may also be composed of not to exceed 3 persons not so related, provided that such unrelated persons live in a single dwelling and maintain a common household and a single housekeeping unit." We bought it and occupied both houses and rented out one bedroom for a nanny for a time and rented out an apartment to friends. We all had full access to each other's spaces but respected privacy. We did this for 7 years so far. So far so good. No issues. But now we bought a neighbor's house, one of the other original houses, that is larger and much more suited to our needs. The ONLY way this made sense for us financially was to continue to own the gatehouse and to rent it out. We informed our 4-house historic HOA of our intent but at the time we didn't think it was going to actually be able to occur financially. AFTER we had a signed contract the other two member properties of the HOA voiced their concern over living next to more renters. After meetings we concluded to rent our gatehouse to "one family" per current code restrictions. BTW, we cannot integrate the gatehouse's two houses due to a restricting historical covenant that expires in 4 years. We do not wish to live in disharmony with our HOA - we all share a one acre square and we like each other. I do not wish to get into a legal battle with our Village. To complicate matters more the sellers of the new acquisition couldn't move out for 9.5 months due to COVID issues. I'll spare you the details but they rented back from us. So, enough background. I just got notice that they got their vaccinations and are moving out in 2.5 months and so I have 2-3 months to market this unique property for rent. If we rent it to a multi-generational family or to a family with extended family then we will likely be able to rent it for a fair (to us) price. If we find someone with a nanny and a need for a home office then also good. But having one lease with a family that might themselves rent out a portion of the other house like we did gets very complicated to describe and to manage. So, FINALLY, here is my QUESTION: How should I market this property for rent? For the right person it is perfect. But it is complicated. How would you describe this property?