Renting/ Leasing Rooms

Hi,

I have an extension that is two bedrooms with its own lounge and bathroom, could a property manager/real estate manage and put tenants in for each room? or does the building need to be individually metered or titled?

 

Certainly can put tenants in each. Whether its worthwhile is another matter entirely - extra rent vs extra PM cost & extra turnover.

At a certain quantity of tenants you need to follow rooming house rules, amount varies per state.

Individual meters only affects water usage charging. In SA they'd divide the usage cost among tenants but in other states can't charge it at all.

 

What about the kitchen, is it shared?

 

Where is it located?
Brisbane City Council - use not supported for a house, but rooming accommodation yes.

 

Yes you can and yes an agent can do it and manage it under rooming house agreement.

 

We rented out a house with 5 separate rooms, individual door locks, shared bathroom/kitchen.
rent at $180 week included utilities and unlimited internet. went reasonably smoothly until one threatened to stab another with a kitchen knife ! He left with police intervention same night and no real dramas after that. You do need a patient agent up for a challenge

 

Same question above.. What about the kitchen?
Is this part of your PPOR?

 

Also you don't have the same protection as with conventional leases. Ie landlords insurance ability to charge lease break charges, damages, 28 days notice.
These are good until something goes wrong and that is where the risk is.

 

Very similar to your situation Agent99

- Three individual rooms with own locks
- Shared kitchenette/living area/euro laundry

Property is in the northern suburbs of Victoria. It was a substantial sized double garage/ enough for a mans own mechanic shop about 80sqm. Yes this is apart of my PPOR and resides in the rear west of the property.

 

Hi Xenia,

Thanks for the info, could this arrangement also affect home insurance? and further tax implications?

 

Hi Agent99 did you also have each tenant under 6 month or 12 month leases? or was this more sporadic and just periodic leases

 

Each tenant was on a 6 month lease as they were students with different study and course dates.
Made it easier if they needed to go back home, basically we worked in with the end of study dates.
Always filled rooms quickly, usually friend of another tenant and we found them very respectful and mindful of religious beliefs of other tenants. Insurance was consideration when doing initial DD prior to purchase and found ins co's were very accomadating in their advice and recomendations through our broker.
All went smoothly and believe good continual communication is key. I was also there on a weekly basis doing gardens etc so was able to keep one eye on things. To them I wasnt the owner as payments made to company so was not seen as a spy so to speak.

 

Could anyone give information in regards if this arrangement can also affect home insurance? and further tax implications?

 

I have a property rewnted like this .
It is a good way to make extra $ but you have to be willing to keep up with the coomunication.Being close by definately helps too "as a gardener"

 

Is there any other platforms besides Flatmates to look/or list tenants? Or is it better doing it with a Local Real Estate Agent

 

Yes housing commisiion but you need to vet the tenants its high maintenance.

NoTe: IN qld the rules have recently changed re renting these houses.You cant rent the rooms to seperate tenants(more than 3) unless on the 1 lease,they are cracking down on it now

 

gumtree

 

Great idea may implement that in.

Has anyone else done this arrangement and how was your experience

 

Yeah, legally it can make a big difference between whether you're living there as well or not.

 

Havent done exactly that.
We have an IP in a Uni area and it's fully furnished. We figure since we are going to deal with them, might as well make it worthwhile by getting more money. No doubt there will be more calls for repairs but good excuse to do an "inspection" esp with students, they are not renowned to be house-proud.

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I like the Share section of realestate.com.au. They provide profiles for both party and it's free. Some local FaceBook page are good you just need to find them. Gumtree has more miss than hits.

Getting a local REA only if you dont live closeby and not handy. Individually the money is not great for a good REA IMHO.