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Sub let of rooms to multiple tenants

Discussion in 'Property Management' started by Xiao Hui, 7th Apr, 2016.

  1. Xiao Hui

    Xiao Hui Well-Known Member

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    Hi any experts there..

    I have a 6 bedroom 2 bathroom and toilet big house in a Big Country town which my friend wants to rent from me, at a higher than market rate, to sublet to short term tenants. His intention is to furnish the whole house, then rent out on per room basis to different people. He is thinking of charhing between $150 to $160 per person PW all bills inclusive.

    I called the council up and ask them about the above but their reply is : This is a private transaction between a landlord and a tenant (or sub tenants) and we will not interfere. And I did perform some searches on the internet and there's no strict rules to say the above cannot be done.

    So is it alright to lease a house to a tenant and he in turn lease rooms to sub tenants of his likings??
     
  2. Nick Valsamis

    Nick Valsamis Well-Known Member

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    As long as you permit him to do so it is fine. People do this all the time to fill extra bedrooms.

    However, there is probably more risk in that scenario as he has to manage different people coming in and out, cleaning, repairs, missing rents etc.

    It could end up in a massive mess as opposed to having 1 family in there for the long term.
    So you need to weigh up if the extra rent is beneficial for you to do this.
     
    Last edited: 7th Apr, 2016
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Ensure that you don't breach the rules for a boarding house - esp number of unrelated persons living in a property.
     
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  4. Joynz

    Joynz Well-Known Member

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    Here is a summary of some of the Residential Tenancies (Rooming House Standards) Regulations 2012 which apply in Victoria:

    A Rooming House is a building where one or more rooms are available for rent and four or more people in total occupy those rooms.

    There are minimum standards for privacy, security and safety. These don't seem onerous and include fitting locks to doors of rooms, each room must have at least two power outlets, Windows must have openable coverings, Shared bathrooms and Toilets must have a latch, Kitchens need certain facilities, including a lockable cupboard for each resident The main entry needs a peephole, window or similar, and good lighting. You have to keep records of gas safety and electrical safety checks.

    Exceptions can be made due to age of property etc.

    More detailed info. on the consumer.vic website or in the actual regs. Sad to think that some of these things have had to be legislated.
     
    Last edited: 7th Apr, 2016
  5. Xiao Hui

    Xiao Hui Well-Known Member

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    Sorry if I may ask, what you mean when you say "don't breach the rules of a boarding house?"

    I know it's a fine thread between subletting rooms and running a roaming house. So what exactly are the DONTS for renting to multiple tenants (not roaming house) in a house?

    All the rooms in my house are at least 10sqm each and my friend only intend to put a person or max a couple into each room, nothing more. I reckon that should be pretty comfy for all?

    And in the house there is a big lounge, with heating and cooling, big kitchen, two bathrooms and toilets and big backyard for tenants to roam. Does this sounds reasonable?

    Thanks.
     
  6. Nick Valsamis

    Nick Valsamis Well-Known Member

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    Actually even though the council didn't mention anything, there could still be some state regulations around short stay as well regarding to the number of occupants.

    You may need to check with Consumer Affairs Victoria to determine this.
     
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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  8. Xenia

    Xenia Adelaide Property Manager Business Member

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    Love this new look Nick - very professional indeed :cool:
     
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  9. Angel

    Angel Well-Known Member

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    You will want to phone your insurance company too.
     
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  10. Marg4000

    Marg4000 Well-Known Member

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    And check that it is fully compliant with fire regulations - alarms, exits, signage etc.
    Marg
     
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  11. Xiao Hui

    Xiao Hui Well-Known Member

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    Now if I just let lease the house out as a sub let, not as a roaming house (though function is similar), is there a need to still comply with the requirements of a roaming house like exit signs, alarms etc? Or even to have minimum room size for the tenants?
     
  12. pinkboy

    pinkboy Well-Known Member Premium Member

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    If it walks like a duck, swims like a duck and quacks like a duck.....

    pinkboy
     
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  13. Joynz

    Joynz Well-Known Member

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    You need to look up the Victorian legislation or at least the consumer.vic.gov site as suggested. The rules are quite clear about what a landlord has to do. I would be surprised if you can pass responsibility on to your friend.

    The requirements have been imposed due to some deaths a few years ago in rooming houses.
     
  14. Xiao Hui

    Xiao Hui Well-Known Member

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    mates :

    Thanks for your advise. Appreciate it.
     
  15. melbournian

    melbournian Well-Known Member

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    hi xiao hui how did you go with this? the rooming legislation etc?
     
  16. Xiao Hui

    Xiao Hui Well-Known Member

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    Hi melbournian

    The cost, time and effort taken to convert a house to a roaming is too great to make it worth doing. I need to engage a consultant to apply for change of use, modify the house to suit council's requirements, then get someone from council to inspect it.. And that's not guaranteed they will approve it the first time. Assuming it did get approved, I need to pay a small fee annually to maintain its use as a roaming house.

    I think it's better off renting the house as it is. Haha.. Too much work and too much $$ to upfront.
     
  17. melbournian

    melbournian Well-Known Member

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    where was your house located. i think co-tenancy is probably the easiest.
     
  18. Xiao Hui

    Xiao Hui Well-Known Member

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    Melbournian

    The house is in Bendigo. What do you mean by co-tenancy?