short term rental vs. long term lease vs. subletting

Wishing for Advice about short term rental vs long term lease and current legislations:

• airBNB/Stayz/flatmates
• formal RTA tenancy agreements
• subletting contracts

Hoping to expand potential of a 7Bed/2Bath/2Kitchen <5km of Brisbane CBD to maximize ROI. Not planning for any changes from DA perspective, but do have funding for internal renovations (including potential for sectioning additional rooms or additional amenities).

Would love to see what experiences or ideas everyone has to maximize potential and wonder if they have encountered issues with any of the current housing crisis legislations.

Thanks.

 

Legislations? Did you mean the laws?

What did you want to know? There’s potentially a whole book that could be written on the subject.

 

I guess what i'm considering is to maximise potential ROI by thinking of renting out room by room with possibility to renovate bathroom and kitche to share use:

currently reading conflicting articles on amount of poeple that can live in a single dwelling. "not more than 5 persons", "not more than 5 'unrelated' persons", some articles even saying "not more than 5 'unrelated' parties. - Also opens up another question that how 5 persons would apply if a tenant can sign on behalf for his/her related person.

Seems like also new rules on not being able to rent out > 3 months for short term rentals.

Other options to consider is main tenant/owner of property can sublet single rooms out. I think in this case, above rules probably wont apply (or i might be wrong).

Last option is to directly lease out each room without a main tenant/owner residing on the property - which i believe likely may trigger DA requirements under NCC rules.

 

Proximity to transport and a major grocery store?
Sounds like a potentially great share house to rent room by room.

Doesn't sound like a suitable airbnb, unless perhaps chop it into 2 or 3 smaller places. Opens more options.

QLD requires a conversion to be done via council to deem it a legal boarding house. I'm not 100% on the rules I'm NSW/VIC based.

Contact Sean (PM me for a number). He runs and manages a few that side of town.

As for the specifics of what counts as 5 or more unrelated parties. Yeah, there's a lot of loop holes around that. Just figure out the QLD compliance requirements for multi res dwellings.

 

What reference points or articles are you referring to? You should look at rooming house or shared house requirements at the council level (and as per your zone) as well as the legislation requirements. 5 persons applies to BCC and houses in low density or character zones. Rooming accommodation

 

Buy near hospitals they are usually the largest employers, training facilities or manufacturing and processing plants. Get sweet the people responsible for recruitment it may take some networking to do this, they may rent the house as part of salary package to obtain employees to house multiple employees, I was getting 15% yeilds from a Singaporean mulinational and a nurse training facility.. They also paid 3 months in advance. I wouldnt worry about council BS.

 

Neil's is a true champion. One of the most genuine people you'll meet.
He owns The HMO Property Co. We learnt this strategy around the same time, slightly different methodology.

Sean is Neils QLD counterpart. We all know each other.

 

Is there anyone in Melbourne who does something similar?

 

Yes a few thousand people I'm sure.

Educators of the space in Victoria include Ian Ugarte, Matt White. There are quite a few educators on Insta I recently discovered.
Room managers for Melb include Derrick Wong.

This is not a strategy for the faint of heart. It sounds easier than it is.
From the 100's of people I've met, all but 6 basically went bankrupt through covid.
The rest have negligible portfolios <100 rooms.

The ones that got through however are killing it at the moment.
The ones I know are on-boarding between 100-300 rooms every month.
It's no longer a side hustle. It's a business with lot of moving parts including a few dozen staff. Some working towards listing on the stock exchange etc.

A handful bring in multiple 7-figures. I know of one guy who brings in around $10M profit a year.

Then you get the Scapes, Uni Lodges, and the Igloos. Superfund backed goliaths.
I have no idea what they are bringing in.

*Disclaimer* You can achieve this result in just about any industry. If you have the ability, vision, and grit.

This is not a magic industry. It's the same as any other. High risk of stumbling.

 

Thanks. It does sound like council approving to be boarding house with existing dwelling will be a difficulty. But seems like subletting or even airbnb while occupying the place is still possible to make a good ROI within 5 persons.

Have found a few Property Management both willing to go through method of airbnb and rooming tenancy (R18) following conditions of <5 occupants at the dwelling.

Would love to know loop holes your referring to - unfortunately i cant seem to PM you on your profile.

 

It does seem like the property meets all the code described. Seems like as long as it is less than 5 occupants council approval is unlikely required. But will require certifier to bring property up to living standards i.e. fire proofing and fire safety.

 

Would you be willing to share his contacts via. PM so I can have further chat with him? as he will probably be more knowledgeable in the QLD market. - Thanks.

 

Yes. Very good location i would like to think.
LMR2 zoning (with partial character housing). 30-40 minutes walk to Brisbane CBD.

 

I would have to agree, and hence the post. Want to know the rules, so I know I can play it safe, and also to knowledge myself where I can bend the rules from time to time even.

 

https://www.realestate.com.au/sold/...e=rea:sold:srp-map&sourceElement=listing-tile

Can anyone see problems with this property? Anything I can learn from this example?

 

Not a property I'm looking at purchasing. But would like to structure my current single dwelling house to achieve similar outcome.