Hi guys,
So I'm a newbie, and looking to buy an place near or in the city and have it rented out.
I had a look at a few places and some places were currently renting out a 2 bedroom to 8 people or a 3 bedroom to 10 ppl.
(i.e. 3 per room and 1-2 in lounge room).I do not want to have this happen once I rent it out.
If anyone has experience with this please advise.
I would like to know whether it is:
- legal?
- does it matter? why and why not?
- is the wear and tear/damage to the property increased greatly?
- what actions i can take if i find out
- what penalties can be incurred to the person on the lease?
Thanks in advance
I suggest you contact a few different property managers in the area .They should be able to let you know the current laws etc and it will also give you some experience in finding a property manager.
Good uck and let us know!
There is another post on here somewhere saying that if there are more than seven non-related people living in a dwelling then it is classified as a boarding house, rather than a rental property. Then council regs may be being contravened as well as issues wit body corporate if in a unit complex.
cheers
Sonya
It is not legal in most states as it is classed as a rooming house. Please search the forum for others posts on this.
If you find out it is happening you can move to evict the tenant based on sub-letting. It is important because 10 people will wreck fixtures a lot quicker than 2. I would get strict wording put into the lease at the beginning that highlights sub-letting and the fact that eviction will take place within the required notice period. Also get the PM to do three monthly inspections rather than 6 mths. They will charge you but better the fee than heaps of trouble later.
The other 8 people are not on the lease. They could trash the property. Also the fact of the matter is who really wants to be a slum lord?
I wouldn't want to squash 8-10 people in a property, dya reckon they would all be able to have a shower every day? Hmmm.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeHi, my two pennies worth in answering your queries:
Is it legal? Check the council regulations to ensure what is a satisfactory number for a residential property. If it comes under a 'rooming' or 'boarding' house AND you have a lease for it in that situation, then obviously, yes, its legal. However, if you have a lease for only a few people, then any more than that on a permanent basis is not.
Does it matter? Well, it matters if you, the landlord/owner, don't want that many people living in the property. In my opinion, a two bedroom property is meant for no more than four people. Living conditions are awfully cramped, not to mention the extra stresses on the wet areas, cooking equipment and plumbing. If the other people living in the property do 'trash' the place, then the leasee will be responsible and is certainly not going to admit that they had more people living there. Why? Because it could cost you money to have things replaced more frequently. The bond may not be sufficient to repair damage caused by bigger numbers.
Is the wear and tear/damage to the property increased greatly? As above, with twice as many or more people living in the property, then there will be extra stress on the property and its facilities. Assuming they don't shower every day as DWolfe said, they will certainly be using the toilet, cooking, etc. Yes, the chances of your property being damaged will increase with greater numbers.
What actions I can take if I find out? Do regular inspections. If you find more people living there than on the lease, ask the tenant to explain. Work towards having the tenant evicted if the breach notice isn't complied with. The tenant will come up with all sorts of excuses, ie. the people are just staying a few weeks, etc. If you're not happy with any of these responses, issue notices and evict the tenant. Do regular drive-bys to assess whether there are more people living there than should be (without stalking!!). Get to know your neighbours … they may be more than willing to 'dob' the tenant in if there are lots of people living there.
What penalties can be incurred to the person on the lease? You can use the bond to repair/replace any damage. Over and above that you'll need to seek recompense from the tenant through legal means. Be wary of potential legal action to you from body corporate or the council if your property contravenes any by-laws caused through overcrowding. It is in your best interest to be firm and control the property and the tenants.
My suggestion is this:
Make your lease watertight. Specify the number of tenants on it and name them all. I always remove the sub-letting clause from my lease. Vet your potential tenants well … if they look dodgy they well might be (or not!). If you strongly believe there is potential for a sub-letting or overcrowding problem with the area and property, then be very specific in letting any potential tenants know that it isn't allowed and won't be tolerated.
Good luck!
If you are worried about this happening to you then just make sure you get a good rental manager. When someone signs a rental agreement they have to state who will be living in the house. If people who are not on the rental agreement are living in the house then you may have a legal standpoint by which to evict everyone.
If you are worried about 7 people living in your unit because of damage remember that that is what bond is for. If they damage the place you can take their bond, and if they REALLY damage the place then your insurance should cover it.
But a good rental manager should do regular inspections and I believe it would be hard for 7-8 to make the place look like only 2 people live there when the rental manager comes to inspect. So there are ways you can avoid this.
Hope that eases your mind.
Ryan McLean | On Property
http://onproperty.com.au
Email MeI have a client whos property is in Bundaberg Qld. He rented it to a single guy. The single guy has 4 students staying there which was only found out during a recent inspection. The agent contacted the owner and they got $250/wk rent instead of the $190/wk previous if they left the tenants stay.
This was only 4 so not classed as a boarding house situation so perfectly legal.
I only wonder what the poor students are paying the single guy each to stay there.
Its a funny world sometimes. In this case the owner benefited by $60/wk and is happy.
DD
Amazing DD … there's definitely some enterprising souls out there! I can't say I blame them … its an interesting proposition to rent from someone then sub-let to others who'll pay your rent for you. As long as the lease says its okay and the owner is cool with it, why not?
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