All,
Does anyone have experience in renting out each bedroom of a single property to unrelated people (with each person being on a separate agreement)?
I’m looking at ways to substantially increase the cash flow of a couple of properties I have in Richmond (Melbourne) and this seems like a good way to achieve this. However, I can find nothing on this site (or any others) about the pitfalls/regulations/etc in doing so.
I also have a number of properties in London (where I currently live) and such a setup is fairly common for the general public, and extremely popular for investors due to the massive cash flow potential of this. In England it’s called a House of Multiple Occupancy (HMO) and there are well defined guidelines around operating this way. So, I assume there are similar requirements in Australia, but I can’t find ANYTHING! eg: max people per property, health/safety/fire regulations, registration with council, etc.
If anyone has any pointers for me, then I’d love to hear them! Also, if anyone knows of any agents/organisations who manage these that would be perfect (London is a long way away!).
Thanks,
Scott.I have previously seen ads for what looks very much like rooms in such properties advertised on http://www.domain.com.au in the Brunswick area. I'm really keen to be kept in the loop on this one if possible – [email protected]
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
http://www.housesharevic.com.au appear to offer such accommodation, but it is their own houses. Gives you an idea of rents you can command, though. They don't rent rooms in your house for you. Perhaps a realestate agent could offer the service??
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
This is worth a read http://www.realinvestmentproperty.com.au/renting-by-the-room
Looks like to understand fire regulations etc, you need to search for requirements for boarding houses
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi JacM,
Thanks for the replies – some interesting links.
I came across Trish Clark ([email protected]) and her company Roomfinder who specialise in renting rooms out in a house on a room-by-room basis. She posts on Somersoft.com.au as Empire.
I’ve has a few email exchanges and phone calls with her, and she’s currently looking into one of my properties in Richmond with a view to renting out it’s 5 rooms on a room-by-room basis.
I’ll let you know how things progress.
Scott.
Hi Scott
That's awesome news
It would be fantastic to hear how things progress – I would really appreciate that!
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi Scott,
That set-up is very common in WA, and utilised a lot by students, international travellers and temporary accommodation for singles/couples. I have lived in one such house… My mother also rents the spare rooms of her PPoR in this fashion, and I have recently acquired another IP which was selected purely for this style of leasing, due to its proximity to a large university and public transport.
The major downfall is the extra work required, so its either going to chew up a lot of your time, or if you have a manager then i’m sure its going to attract high management fees.
You must provide high speed wireless internet to satisfy tenants demands.
As someone who has experience both as a lodger living in one of these, and as someone planning to start their own, feel free to contact me with any questions
Cheers,
EmmaHi Emma
What are the legal requirements for such a residence? For instance, in the UK, there is a requirement to install fire doors.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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