Boarding house in Vic?

Discussion in 'Investment Strategy' started by Green, 20th Jan, 2019.

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  1. Green

    Green Member

    Joined:
    11th Jul, 2016
    Posts:
    18
    Location:
    Melbourne
    Hi all,

    Does anyone have experience owning boarding/rooming houses in VIC and wouldn’t mind sharing their story?

    I’m interested in renting out the rooms one by one in a 4 / 5 bedroom house to allow me to hold decent assets with a much greater cash flow, but unfortunately it seems that will fall under the jurisdiction of a boarding house. Interested to hear about how complying with the legal side of things has been as a registered boarding house and what the tenant management process has been.

    Cheers!
     
  2. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    3,773
    Location:
    Melbourne
    In short: "unprofitable".

    Times *may* have changed but when we were doing it, we kept getting undercut by the illegals.

    I see the rooming house rules have even gone tighter now, so compliance would be even more difficult than when we were doing it.

    Better to by shares in Accor or something IMHO.

    The Y-man
     
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  3. schmucky

    schmucky Member

    Joined:
    15th Jan, 2019
    Posts:
    5
    Location:
    Melbourne
    The way I understand this is:
    Less than 3 tenants (not a rooming house and will not need to be registered) - if the owner lives in the house the tenants would ordinarily be considered under license and not subjected to the Residential Tenancies Act 1997.

    You may choose to sign agreements with each tenant. I would think it is a requirement for landlord insurance claims but have not read the PDS.

    shared households • information for housemates - Tenants Victoria
     
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