Converting my whole house to serviced office space?

[jconsta6]

Hi All,

I'm in the process of selling my house.

I think I've had only 2 viewings that have been families. The rest are all businesses wanting to turn it into "something". Whether it be a care home or office space or whatever.

Being a victorian house, it lends it's self well to being office space/care home etc, with 2 bathrooms already on the first floor, and wide staircase etc.

Now, I've priced it well in the market (about 85k - 100k lower) than similar properties on the same road (that have sold), which is why I seem to be getting this interest. What I'm thinking is that obviously I owe no where near what I'm asking for it, so why don't I turn it into a business myself (i.e. if others think they can make a business out of it at the price I'm selling then surely I can when I already own it?)

I'm not intrested in people servicing - i.e. care home as I know that will take all sorts of planning, but what about serviced offices? and mail collection etc? I've got parking for around 12 cars too.

Anyone know whats involved/considerations? So far, since I started thinking about this (last night) I've come up with :

Change of use planning application
Refurbing all rooms to neutral office colours / carpet (luckily I've replastered most of the house already and just painted the walls!)
Add secure doors to each office space.
Add phone lines to each room/ PABX system.
Supply basic desks, chairs and phones. Client to supply their own filing etc.

Whole house has been rewired/new central heating.

Obviously maintain shared kitchen facilities - again lends itself well as a kichen diner.

There would be 8 rental office spaces, with the smallest being 14ft x 10ft8 largest (half of each size roughly) 20ft x 14ft.

I think 6 desks in the large ones and 3/4 in the smaller ones. I have 9 rooms, but thinking of keeping one for myself.

So, it's open to the floor, good idea/bad idea and considerations please.

Any advice REALLY appreciated as I think I@ll need to move fast on this if I want to do it.

In the meantime, I'm off to canvas local businesses to find out what they pay and see if there is any market for it. I have a rough idea as I've rented office space before.

Thanks all in advance.

JC

[Don]

We pay £1000 a month per room for our office space in www.wortinghouse.co.uk 

We supply everything in terms of furniture, PCs etc.

The 'house' provides reception with customised telephone answering (in our name), a telephone extension for every person, and broadband.

It also provides meeting rooms that can be rented "on account".

They have one full time and four part-time staff just for the offices. They also have a full time maintenance guy and they subcontract the gardening (which used to be a full time job for one guy).

HTH

Edited by Don on Wednesday 26th March 09:53

[Jubal]

I think it's a great idea. We do a lot of work with business centres and multi tenant buildings and they seem very busy, although the shared areas do have an operational overhead. I'll sort you out with phone lines, network, pbx suitable for multi-tenancy, manage the whole thing and even work on a revenue share with you if you don't want to pay for it all up front. We can also offer your tenants various managed IT services if required. Drop me a mail via the profile.

[Eric Mc]

I would say that planning issues would be the most difficult to overcome.

Are there any similar establishments (multiple occupancy homes) in the road?

[jconsta6]

Eric Mc said:

I would say that planning issues would be the most difficult to overcome.

Are there any similar establishments (multiple occupancy homes) in the road?

Thanks for all the replies so far - good advice and information.

The house next door is ver similar to ours and was turned into a care home around the same time we moved in - 3 years ago. They have 9 ensuite rooms in it now.

Planning has been previously granted to ours before we moved in to convert it to a B&B. I know it's not the same thing, but I think it shows they are not completely adverse to the idea of change of use.

Apparently, when the searches were done when we almost sold it at the begging of the year, change of use to business precmises had been granted 5 years ago too. I realise it's lapsed, but I don't envisage huge problems, although do agree, it's something that needs to be resolved bfore pressing ahead.

What I'm trying to work out now, is if its, worth pressing ahead?

Thanks

JC

[AndyADH]

I think you need more parking.

You say you have 9 rooms and 12 spaces.

So thats 1 for each office and the receptionist's car, to leave you with 2 spaces for any additional employees and customers.

Otherwise the first few tenants may be interested but when others see there is no parking available they may look elsewhere for office space. Afterall there is no point is having 4 desks in an office when only one of the workers can park outside. And additionally if the employees take up all the spaces then I am sure the customers wont be happy and may end up going elsewhere.

So is there anyway to expand this, or is there parking nearby for employees, Remember to leave a few spaces outside the building for customers, because if they lose customers the tenants may look elsewhere.

Otherwise sounds like a great idea

[jconsta6]

AndyADH said:

I think you need more parking.

You say you have 9 rooms and 12 spaces.

So thats 1 for each office and the receptionist's car, to leave you with 2 spaces for any additional employees and customers.

Otherwise the first few tenants may be interested but when others see there is no parking available they may look elsewhere for office space. Afterall there is no point is having 4 desks in an office when only one of the workers can park outside. And additionally if the employees take up all the spaces then I am sure the customers wont be happy and may end up going elsewhere.

So is there anyway to expand this, or is there parking nearby for employees, Remember to leave a few spaces outside the building for customers, because if they lose customers the tenants may look elsewhere.

Otherwise sounds like a great idea

Good point Andy, and yes its something I've been thinking about. There is currently about 12, I think I could easily add another 6 to the front of the property which is currently laid to lawn. I could remove 2 garages too, which would not only provide parking, but also provide access to another section of garden.I think if I was "creative" I could create a large amount of parking and still leave a nice garden area to sit in during the summer lunch breaks.

They are all valid points, and things to consider.

I suppose it's going to boil down to market research now.

Someone else has suggested not providing desks and chairs - or maybe provide tham as an additional option. What are peoples thoughts?

Thanks again.

JC

[Eric Mc]

No point on providing furniture unles you know to what use the building is going to be put.

I wouldn't bother.

(I presume you are still talking about selling the property rather than renting it out).

[jconsta6]

Eric Mc said:

No point on providing furniture unles you know to what use the building is going to be put.

I wouldn't bother.

(I presume you are still talking about selling the property rather than renting it out).

Sorry, I may have confused things, I'm planning on not selling and converting the whole thing to offices I can then rent out and manage.

Cheers,

JC

[Eric Mc]

If you do intend to retain the property, then, of course, from the date you move out it ceases being your main residence and will be (potentially) subject to Capital Gains Tax if and when it is eventually sold.

[ginettag27]

of course you'll need to apply for change of use to the council... as someone has mentioned each office would need at minimum a phone line.. Interweb?

[Chrisgr31]

Parking is going to be an issue as mentioned. However planning these days works on a basis of a maximum number of spaces for the floor area. This maximum is likely to be significantly less than you think you need.

Therefore I would look at converting the front lawn or whatever to hardstanding before you put in for change of use! There was a proposal that domestic dwellings would have to apply for consent to replace lawn with hardstanding, not sure if it ever came into effect or not.

[jimbouk]

JC

I suggest you research the local competetion and see how keen they are to do deals on space, always a good indication of the current supply v demand situation!

As to furniture, I suggest you include it, otherwise clients will bring in their own and it will generally result in them damaging decor / fittings in the process. The capital cost will be worth it! Also stops the building being full of ramshackle furniture that used to be in the clients garage and sheds....

Try and decide which segment of the market you are going to target, I run a portfolio of serviced offices / workshops from grade I listed properties through to basic workshops, current demand seems to be at the opposite ends of the spectrum, top quality offfering and value offering, mid market is a lot slower.

Final point to watch out for is what tenure you offer the clients, licence v lease.

J