Ramifications On Illegal Rentals.....

I am concidering purchasing sfr's but renting it out as a 3 seperate apartments. I know its not very legal but it is common practice in the area i am looking at. I am just wondering what the ramifications are if I get caught. Any advice would be great on this subject matter. Thank you.

Comments(5)

  • niravmd30th December, 2003

    why is it illegal?? are you planning on doing strutctural modifications?

  • Lufos30th December, 2003

    Dear Dolly,

    You are riding a dividing line and frankly I am shocked to see you doing such a thing in your beautiful neck of the woods. But it is nice to know that I am not alone.

    We have some very interesting laws here in California. For instance did you know that as many as five non consenting adults can live in a single family residence. Now what the hell is a consenting adult are they talking about sexual pairings? If you hold hands is that allright? If you install a bundling board down the middle of a double bed, and promise not to jump over. If you abandon the normal paths of sexuality and take to whips, chains and masses of black vynal is that acceptable? I gave up on such items years ago. I think my high point is the large Spanish house I owned up in the hills in West Hollywood on a St. called Kings Road. I turned it into 8 units. The best the former library I kept for myself. I hired a full time housekeeper and cook. We had formal dinner parties and all types of persons came and went very in, very intellectual and from the many languages spoken very Eclectic. It was a fun time and I supose broke every zoning law in Calif. I installed bathrooms all over the place, I converted closets and finaly running out of space I converted the laundry room into a full bath. This one with an old fashioned tub with claw legs and brass plumbing fixtures. Did it all myself as the plumber with the low riding revealing blue jeans wanted a fortune. My work was better. Many very charming persons came just to bath in this crazy throw back bathroom. No problems. I think the neighbors liked it. Especialy all the nude bathing that went on at the pool. Everytime you got out you felt you had to execute a formal bow in all directions. The sound of distant clapping could be heard. Fun time. My advice, carry on damn the torpedos.

    Ah the good old days. Lucius

  • InActive_Account30th December, 2003

    Is there any law being broken by this setup?

  • molotov30th December, 2003

    I'm with Lufos (I carry a sign that says this 'I'm With Lufos') - go ahead and do it. If you are not going to do any external structural changes, you are not going to raise any too curious eyebrows (whether or not you would really need a permit at all depends on the extent of your indoor carnage). Only other concern is that when you sell it, you will get "were the changes permitted?" type of questions and will not be able to sell it as a triplex per se.

    I'm doing this same thing right now! PM me to start a dialog of commiseration!

    Mark

  • JohnMerchant31st December, 2003

    The only area I can think of, that could possibly cause you future problems, is legal liability...for some tenant claiming to be hurt or killed on the RE.

    Guess if the tenant were killed, HE wouldn't be making any claims, but being the PRC(Peoples' Republic of CA), ya never know.

    So I'd just want it in writing from my insurance agent that I'm fully covered with P&C insurance, including fire & liability coverage before commencing to rent same.

    If you cannot get the P&C coverage because it's a code violation, but it's profitable enough anyway, at least make sure it's in an LLC or corp so YOU don't get sued.

    And the RE being, I guess, in the PRC, I'd have my lawyer do it, and keep very careful books on the LLC to make sure the corp. veil doesn't get pierced and
    Y()U get nailed as the real owner, etc..

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