There are a variety of ways to create wealth through property development, including subdividing a property. Subdivision entails converting a single block of land into two (or more) plots. This might be a great opportunity for you to build a rental unit to generate a bit of passive income by turning an existing property into an investment property.

The scale of subdivision varies greatly, from dividing large plots of rural land to splitting a current developed property in half.

Types of Subdivision

Subdivision comes in a variety of methods, but not all methods are suitable for every piece of land. There are many rules, regulations and zoning requirements found in each state that can even vary region to region. The different types of subdivision include:

  • Strata title, which involves converting a single title into multiple titles.
  • Granny flat, which involves creating a new detached or attached building on an existing piece of property.
  • Second property, which involves splitting a large block of land into separate lots and building a new property on the vacant lot(s).
  • Raw land, which involves developing raw land and not only splitting the property but also physically changing the use of the land

Elements to consider

If you are thinking about the subdivision of your existing property, there are multiple elements to consider before beginning the process. These include:


It’s important to understand the zoning in your area. You can check with your local council to find out what property development will be allowed.

Sewage, storm drains, and easements

Every property has a number of attributes that you must be aware of. Property plans can help you determine these attributes and if they will affect a subdivision plan.

Land size

In order to get approval for a subdivision, the property will need to conform to the local town council’s minimum lot size. Once again, your local council can help advise.

The shape and slope of the property

This can play a significant role in deciding how many dwellings can be built. The shape and slope of the block can restrict access or reduce the useable working area of the land.

The land’s structure

It’s important to enlist the help of a surveyor who can assess whether the structure of the land can physically support the subdivision you have in mind.

Large trees

Note that in most cases, you need the permission of your local council to remove a tree and some species are protected (which means you cannot remove them until you prove they are diseased or that they pose a danger).

The process of subdividing

Once you’ve decided you would like to subdivide your property, there are a number of steps that need to be taken. You’ll need to:

  1. Conduct due diligence

If you’re buying with subdivision in mind, due diligence should happen before you sign any paperwork. You’ll need to investigate relevant information relating to the property including zoning, council rates, previous development permits, etc.

  1. Engage assistance

You’ll need to engage professionals such as surveyors, property lawyers, building designers, and urban planners.

  1. Draw a plan and meet with your local council

Your experts will help you draw up a plan for the subdivision which should be shared with your local council for a pre-lodgement meeting.

  1. Lodge a development proposal and track your application

Once you’ve gotten feedback, you can adjust your proposal and submit an application. You can then track the process to ensure nothing goes awry.

  1. Act on the process and get final approval

Once you’ve received the go-ahead, you can begin work on the subdivision process as well as construction. Once complete, the block will need to be inspected to ensure it was completed according to the council’s approved plans.

How Instarent can help you find your first tenant

Once your subdivided property is ready to be leased, Instarent can help you find your first tenant. Instarent’s platform allows landlords to:

  • Post their properties
  • Find and screen tenants
  • Send electronic rental agreements
  • Collect monthly rent
  • Keep track of paperwork related to the lease

By keeping everything related to your property in one place, Instarent helps you keep track of admin and makes property management easy.


Once your property is ready to lease out contact the experts at Instarent to see how we can help renters find your new property!

Aron Akca


Aron Akca