Landlord fined $60,000 for illegally converting five Auckland properties into 12 'substandard' units

Auckland Council's claiming "a significant success" against illegally established rental housing after prosecuting a businessman who illegally turned five Auckland properties into 12 rental units.

Madhav Karmarkar was prosecuted and fined $60, 000 for turning two properties in Takapuna and three in Mt Roskill into a total of twelve smaller units without receiving the consent to do so.

Labour housing spokesperson Phil Twyford said the case was the tip of the iceberg. "In parts of West Auckland and South Auckland it can be hard to find a garage that is used for housing a car," he said.

The landlord, who had converted two properties into 12 smaller units without consent, has been fined $60,000 following a successful prosecution by Auckland Council. Two of the ‘units’ were garages.

The council said the "full extent" of the illegal conversions was discovered following a complaint from a tenant querying if it was legal to rent a garage as a flat.

Two of the converted units were former garages, one with low cramped ceilings, and the other even retaining the external garage roller door within the property. 

Auckland Council's manager of resource consents Heather Harris, said splitting properties into multiple residential units could sometime be accomplished legally depending on district plan zoning requirements, but the right consents need to be obtained first.

"Illegal conversions can place tenants at risk, often forcing people to live in substandard accommodation with common problems including overcrowding, unsanitary conditions and inadequate essential services," she said.

Environment Judge J A Smith took into consideration the "deliberate nature" of the offences in order to achieve financial gain.  Enforcement orders were issued by the court requiring the illegal units to be disestablished and the dwellings returned to their legal state by end of February next year.

The defendant was fined a total of $60,000 in his capacity as a landlord and as a director of two registered companies, Jayashree Ltd and Jayashree Corporation Ltd, listed as registered owners of the properties. Court costs and solicitor’s fees were also imposed for all the charges laid.  

Harris praised council officers for their "effective" investigation and application of the law and said that, together with the court’s sentencing, Auckland Council was sending out a "clear message" to landlords that non-compliant activity would not be tolerated.

"We support appropriate development to help meet the housing needs of Auckland residents and have implemented processes to make it easier for people to engage with council’s resource consent department," she said.

Anyone considering altering their property to a multiple occupancy dwelling should consult with the council to receive the appropriate guidance and advice before making any changes.

Twyford said that families "crammed" into sleep-outs and garages are an all too common feature of the Auckland housing "crisis".

"That some landlords are trying to take advantage of desperate tenants by illegally converting garages into flats is appalling, but hardly surprising given the shortage of decent rental properties."