Know there must be a million threads on this, but couldnt find anything in a search. Tried a google search and only get the students rights type of site. Can anyone direct me to a previous discussion, or tell me the requirements for letting out rooms in a house to students. Does anyone have ideas of the benefits of providing things like basic furniture and set sheets etc. Realise internet access, common room and locks on doors and smoke alarms mandatory.
student accommodation regulations
- Thread starter fernfurn
- Start date
Thx Y man...Just a few extra questions if I may. have been thinking about buying a house and dividing it up into some student rooms:
How is insurance handled if the residential block does not meet all council requirements? eg Some off-street parking facilities not quite up to scratch? Can Insurance cover be refused?
If someone is hurt in a shared/student type accomodation, eg a fire, does Insurance cover the Landlord still?
Is it best to buy student accomodation in personal name/company name, or trust, from a protection perspective?
Thx,
JB
How is insurance handled if the residential block does not meet all council requirements? eg Some off-street parking facilities not quite up to scratch? Can Insurance cover be refused?
If someone is hurt in a shared/student type accomodation, eg a fire, does Insurance cover the Landlord still?
Is it best to buy student accomodation in personal name/company name, or trust, from a protection perspective?
Thx,
JB
Bradje,
A lot depends on the type of student accommodation and if you register it as a business as well. Regulations vary greatly from state to state. Also do you plan on getting a contract with a University or sourcing students privately. Universities also have their own criteria and regulations. Another option is to deal directly with OS companies that send students to OZ for study abroad etc.
It becomes another ball game if your student accommodation also covers high school students etc as some places require you to have a blue card etc.
A lot depends on the type of student accommodation and if you register it as a business as well. Regulations vary greatly from state to state. Also do you plan on getting a contract with a University or sourcing students privately. Universities also have their own criteria and regulations. Another option is to deal directly with OS companies that send students to OZ for study abroad etc.
It becomes another ball game if your student accommodation also covers high school students etc as some places require you to have a blue card etc.
Thanks Y-man but I already found this site and it only deals with students rights and the paperwork you are required to give them. I should have made it clear I was requiring govt/building regulations like how many toilets required or whether 4 is classed as a boarding house, but 5 classed as something else. Its in Qld and I only want Uni or nursing students (not high school or schoolie). Good point about renting straight to the Uni, that would be good
celica, I own a 16-room student accomm in QLD. At the moment 5 leases is dealt with as standard shared accommodation with "residential tenants", but 6 or more leases becomes "residential services" (like a boarding house), BUT there is an exception within the legislation for student accommodation. So if your tenants are exclusively students, then you can have more tenants but not be required to become an accredited Residential Services accommodation provider. The QLD Govt is planning to change the numbers to 4/5 in a few months' time, I believe.
There are not fixed numbers of toilets etc, but the universities provide heaps of info to students, and recommend that they only stay at places with at least one bathroom (toilet/shower) per 5 people.
There are several RE agencies that specialise in renting out to this niche market, and I highly recommend that you use one. They can also help you out with advice on all the regulations, saving you having to find all this out on your own.
Requirements for fire regulations are very stringent, and insuring these properties is niche and must be covered by a specialist policy. I definitely wouldn't own one of these in a personal name, unless I owned nothing else.
There are not fixed numbers of toilets etc, but the universities provide heaps of info to students, and recommend that they only stay at places with at least one bathroom (toilet/shower) per 5 people.
There are several RE agencies that specialise in renting out to this niche market, and I highly recommend that you use one. They can also help you out with advice on all the regulations, saving you having to find all this out on your own.
Requirements for fire regulations are very stringent, and insuring these properties is niche and must be covered by a specialist policy. I definitely wouldn't own one of these in a personal name, unless I owned nothing else.
Thx ozperp,
So on the Insurance side, do u have any recommedations? I use AAMI at present, but perhaps there are others who are more flexible for the student stuff?
And would you recommend buying in a company or trust structure, since you say 'not in your own name'? What are the plusses and minuses?
Cheers,
John Bradshaw
So on the Insurance side, do u have any recommedations? I use AAMI at present, but perhaps there are others who are more flexible for the student stuff?
And would you recommend buying in a company or trust structure, since you say 'not in your own name'? What are the plusses and minuses?
Cheers,
John Bradshaw
A standard landlord's insurance policy would not be adequate; this is a specialist area. I use Ian Yeo at PB Broking in Caboolture; he specialises in these kinds of property.
Trust:bradje said:
pros:
* retain eligibility for 50% CGT discount
* can distribute profits for maximum tax effectiveness
cons:
* can't claim losses against other income
I don't know a lot about companies, but they would generally be not as tax-effective as Trusts; in particular, you lose the 50% CGT discount. Of course, ask your accountant about your specific situation.
I have a discretionary trust with a corporate trustee. This has turned out to be costly in the short term, as the depreciation benefits were more generous than I anticipated and I actually have substantial tax losses that it would be great to claim against hubby's income - but you live and learn. The property will make profits in future years and we'll benefit from these deductions then, but the cashflow would come in handy now. So think carefully!
If I had my time again, I'd look carefully at an MGS hybrid trust, even though my own accountant doesn't recommend them.
Thank you very much Ozperp. Can you tell me roughly what a MGS hybrid trust is. We are on the Gold Coast so a bit far from Caboolture, although I'm sure theres a specialist agent around here as there are so many unis. I am retired, have run my own business in the past and self manage one of my properties, do you still think its too much hassle for me to self manage. Thanks again.
A hybrid discretionary trust allows income and assets to be held in different proportions by different members, and thus may allow losses to be offset against other income, though many accountants think the ATO will rule against this use of HDTs. The ATO have been thinking about it for a year or two, though, and haven't ruled them out yet, though
There's a lot of discussion about hybrid trusts on this forum, and Macquarie outline the hybrid discretionary trust here.Caboolture is my insurance broker, not my property manager. I don't care where he is; I've never felt a need to go there.celica said:
I guess you could, but you'd need to get up to speed on quite a lot of legislation and regulation; it is quite different to a standard residential lease. Personally, I wouldn't self-manage, but I have no interest in providing student accommodation; I'm only in the business because it's the optimal use of the property that I've invested in, if you know what I mean. But I'm sure it's doable, if you're good with paperwork.celica said:
I can't stress enough how important it is to get your compliance with fire regulations perfect, and this definitely should be outsourced. Greg Roach of Budget Accommodation Solutions, ph 0408 715 590, is "the" man in this arena in SE QLD. Who and what he doesn't know, isn't worth knowing.
Shared Accomodation
Tracey,
Would shared accomodation fall under the same category as "student accomodation"?
I'm looking for investment properties that has 5 to 7 bedrooms to sub-let to professionals/students/immigrants. Would the standard building and landlord insurance cover?
I'm having trouble finding a good property manager because most real-estate agents won't deal with sub-letting...do you have any suggestions? Should I seek out PM who specialise in student accomodation instead?
Many thanks and looking forward to your reply.
Lei
Tracey,
Would shared accomodation fall under the same category as "student accomodation"?
I'm looking for investment properties that has 5 to 7 bedrooms to sub-let to professionals/students/immigrants. Would the standard building and landlord insurance cover?
I'm having trouble finding a good property manager because most real-estate agents won't deal with sub-letting...do you have any suggestions? Should I seek out PM who specialise in student accomodation instead?
Many thanks and looking forward to your reply.
Lei
These regulations are state-based, so what I say only applies to Queensland. In Queensland, "budget accommodation" - boarding houses and other share housing-type arrangements with more than a certain number of tenants, usually 4 or 5 - definitely falls under a different category. If you are a budget accommodation, there are rafts of additional requirements that you have to meet, and you have to become an "accredited services provider", etc - it's a nightmare. I specifically have student accommodation because it's exempted from the requirements otherwise applied to budget accommodation. Even student accommodation is very specialised and has quite onerous fire regulations etc, but budget accommodation is a whole new level again.
No. You also need specialised insurance when letting rooms. I believe this is true even if you only have, for example, 2 or 3 different tenants in the one property, if they have shared facilities. So even if you don't have to meet the fire regulations etc applicable to student or budget accommodation, you will need specialised insurance.leiw16 said:
Even if a "regular" PM would take on your property, I'd be wary about giving them the job because this kind of arrangement is covered by an entirely different set of legislation, and it's important they're familiar with the particular legislation applicable to your tenants.leiw16 said:
Yes, I think it would be wise to find a PM who specialises in student or budget accommodation. If you're having difficulty finding one, look at the ads for boarding house rooms or student accommodation rooms to rent, and see if any of the ads have been placed by agencies.
The "share" section of realestate.com.au may be useful for this.
I've got a 6 rm house rented by the room to student in Victoria. As ozperp has explained so well, there's a maze of regulations & considerations for this type of investment but like most things in life that require a bit of effort, it can be very worth it.
I thought I'd let you know what I provide since you asked that question and I don't think it was covered:
Per room:
Bed, mattress, mattress cover (replaced yearly if I remember), desk, chair, lamp (BIRs in each).
Kitchen:
Fridge * 2, plates and cutlery, microwave, bin, basic pots & pans, cooking utenciles, toaster, knives
Living room:
couches * 2, TV & stand, DVD player
Dining:
table & chairs
Laundry:
washer and dryer
Other:
* Washing line & pegs (I want to encourage them to use the line and NOT the dryer since I'm paying the utilities)
* Internet access and cabling (I had the house wired up as I didn't want to deal with wireless issues)
* Extra rubbish bin
* Extra HWS
* Monthly cleaner for common areas ~$140
* Monthly mowing and basic gardening $50
Student Accommodation
I rent out to homeless rather than students (room assist) but the rulings are the same. I have found that the rules change from council to council. The best place to start is there, they sometimes call them lodging houses. The rules are fairly strict.
I was surprised that the Tenancy Tribunal ruled that one of my places should have been a regular tenancy rather than a rooming house as it was not completely dependant on the main house for all facilities. Caused me some greif!
I rent out to homeless rather than students (room assist) but the rulings are the same. I have found that the rules change from council to council. The best place to start is there, they sometimes call them lodging houses. The rules are fairly strict.
I was surprised that the Tenancy Tribunal ruled that one of my places should have been a regular tenancy rather than a rooming house as it was not completely dependant on the main house for all facilities. Caused me some greif!
I've got a 6 rm house rented by the room to student in Victoria. As ozperp has explained so well, there's a maze of regulations & considerations for this type of investment but like most things in life that require a bit of effort, it can be very worth it.
I thought I'd let you know what I provide since you asked that question and I don't think it was covered:
Per room:
Bed, mattress, mattress cover (replaced yearly if I remember), desk, chair, lamp (BIRs in each).
Kitchen:
Fridge * 2, plates and cutlery, microwave, bin, basic pots & pans, cooking utenciles, toaster, knives
Living room:
couches * 2, TV & stand, DVD player
Dining:
table & chairs
Laundry:
washer and dryer
Other:
* Washing line & pegs (I want to encourage them to use the line and NOT the dryer since I'm paying the utilities)
* Internet access and cabling (I had the house wired up as I didn't want to deal with wireless issues)
* Extra rubbish bin
* Extra HWS
* Monthly cleaner for common areas ~$140
* Monthly mowing and basic gardening $50
Hi Twitch,
Since you are in Vic, as I am, I am wondering if you could provide some tips on how to get started with a 5 bedroom, 2 bathroom property to lease as student accommodation near a university.
I have many questions but some are:
Do you have a specialist PM?
How are the leases done, e.g., on a month by month basis, or 12 month lease?
Who does the insurance?
Is the property in your name or is it set up as a company or trust that owns the property?
Are all student accomodation sites offered as fully furnished or can one furnish the common areas only?
What kind of quality should the property and furnishings be...e.g., try to get it looking really new and polished...or would a basic repaint, polish boards do with some nice second hand furniture?
Does it take a lot of time to manage?
Many thanks for your help!!
MH
John, my understanding is that 2.4m is the minimum ceiling height for a "habitable room" under the Building Code of Australia, so I don't believe that you could put bedrooms on the bottom floor.
But I am admittedly not an expert. If you obtain contrary advice, I would be interested to know the source, please.
If you're planning on using the ground floor for a rumpus room or study etc, it shouldn't feel claustrophobic.
Delete...Oops. 2.1m ceiling height
Half asleep. Sorry, deleted the original..... it was meant to be EDIT (twice)
Thx for the reply OZPERP. I have confirmed with the council that 2.1m is OK for Fire Insurance purposes. You are correct that the Building Code of Australia does recommend for new buildings 2.4m, though it seems that LOTS of people do have less than that (eg granny flats under their houses).
I am wondering if the feeling may be that it would be a little claustrophobic.
thankyou,
John Bradshaw
Half asleep. Sorry, deleted the original..... it was meant to be EDIT (twice
)Thx for the reply OZPERP. I have confirmed with the council that 2.1m is OK for Fire Insurance purposes. You are correct that the Building Code of Australia does recommend for new buildings 2.4m, though it seems that LOTS of people do have less than that (eg granny flats under their houses).
I am wondering if the feeling may be that it would be a little claustrophobic.
thankyou,
John Bradshaw
