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It is council by council as far as I know. Some councils allow "student houses" to be a different category than "boarding house" with less requirements - I think I saw that in Brisbane. I tend to think if you don't have too many rooms, and don't overcrowd and you watch noise and mess so...

After some great info from these boards I've been learning all about the risk of buying boarding houses so have been now considering a student house strategy - cheapish properties that I could get good yields, that are unlikely to be council inspections magnets - so no 10 room places etc. But...