Renting out IP to more than 6 people+ ?

[JohnHenry]

Hi All,

Assuming we're not breaking the law and disturbing the neighbour, why is that some people says it is illegal to maximize Cashflow by renting out all rooms into more than 6 people in a house ?

eg:

1 people living in the sunny room
2 or 4 people living in the living room with double bunk bed
4 people living in the master bedroom
1 people living in the garage which ahs been renovated to be like a bedroom

it is a win-win solution for both tenant and land lord
Cash flow positive and cash in hand one month in advance.

of course th tax is declared honestly to avoid problem with ATO.

 

[Bigtone]

Hi All,

Assuming we're not breaking the law and disturbing the neighbour, why is that some people says it is illegal to maximize Cashflow by renting out all rooms into more than 6 people in a house ?

eg:

1 people living in the sunny room
2 or 4 people living in the living room with double bunk bed
4 people living in the master bedroom
1 people living in the garage which ahs been renovated to be like a bedroom

it is a win-win solution for both tenant and land lord
Cash flow positive and cash in hand one month in advance.

of course th tax is declared honestly to avoid problem with ATO.

sounds great, massive win for the tenant, put me down to be one of the 4 in the living room. cant see any problems trying to have some privacy in a living room with 9 other people in the house

 

[kathryn d]

If you could rent to shift workers, it would be even better.
Some could sleep during the day, others at night...
You could even accommodate more.


Personally, I see nothing nothing wrong with it.
The tenant will decide what they are willing to pay for this type of accommodation.

In Sydney, we stayed at a converted school.Shared bathrooms and communal kitchen.A communal TV room.Serve yourself breakfast was included in the price.Very reasonable at $24 day. Discounts for longer stays.
We stayed only a week, as we were on vacation, but there was a gentleman there for 9 years.
About a 10-15 minute walk to train station.
One of the rules was smoking outside only, and no alcohol or drugs permitted on premises.

 

[Ed Barton]

sounds great, massive win for the tenant, put me down to be one of the 4 in the living room. cant see any problems trying to have some privacy in a living room with 9 other people in the house

do you like being on ACA?

 

[chilliblue]

You run the risk of being considered a boarding house and fall under that act.

Consider the insurance implications as well as the complaints from neighbours.

 

[Rolf Latham]

You run the risk of being considered a boarding house and fall under that act.

Consider the insurance implications as well as the complaints from neighbours.

Hi Chilli

I dont think with that scenario it would be a risk, id say its close to a certainty

I have a bunch of clients that do rent by the room ( mainly to os students) and I would say that anyone that ignores the compliance and insurance issues, do so at their peril

ta
rolf

 

[tlp]

I think you could do better than that:

Hi All,

Assuming we're not breaking the law and disturbing the neighbour, why is that some people says it is illegal to maximize Cashflow by renting out all rooms into more than 6 people in a house ?

eg:

1 people living in the sunny room
(2 in a double sofa bed)

2 or 4 people living in the living room with double bunk bed
(triple bunks if you have a high ceiling)

4 people living in the master bedroom
(again triple bunks)

1 people living in the garage which ahs been renovated to be like a bedroom
(a young family of 3)

Thats 17 by my calculation! CASHFLOW!

it is a win-win solution for both tenant and land lord
Cash flow positive and cash in hand one month in advance.

of course th tax is declared honestly to avoid problem with ATO.

 

[kathryn d]

Sounds like a hostel.
A 4 bed and 8 bed dormitory seem the norm.
How is that any different?

 

[UrbanPlanner]

In WA a house is considered a 'dwelling' for up to 6 people. Once you add more it then becomes a lodging/boarding house and you open up a can of worms in terms of health/planning regulations. I'd imagine it's similar where you are by the sounds of the other posts. Definitely doable though, just need to go through the right processes. Neighbor consultation often puts the brakes on things like these as people automatically assume backpackers or something and think the worst. But if you let the neighbors know what you're doing before the council does then this should avoid misassumptions

 

[Andrew_A]

The important people to check with are your insurer and the local council.

 

[marg4000]

You are not even trying.

Case in Brisbane of a 3 bedroom house with 35 people crammed in. Landlords copped a massive fine, but probably still ahead financially.

Check with your council. Most restrict the number of unrelated people in a dwelling. Break the rules and you will face criminal prosecution in the case of a tragedy.
Marg

 

[Sez]

you would become a rooming house. Under legislation in VIC there are only a certain amount of people you can put in each room depending on the size of the room, must be certified by council to be a rooming house, have to make adjustments to the property, have rules on display for tenants, fire exits and safty equipment, living space and the list goes on, and on, and on.......

I would think that it would become a drop in center (think about the people who would really be willing to rent a bed in a lounge room, are they the kind of people you want as tenants?), would definately become an issue with neighbours (wouldn't even have to invite over any extras to make a decent party) and you would probably find yourself in a lot of trouble over it all if you weren't EXTREMELY careful. It will also take a lot more of your time to manage it hands on.

Financially? You'll do well until you get in trouble or something goes terribly wrong!

 

[Jamie M]

You are not even trying.

Case in Brisbane of a 3 bedroom house with 35 people crammed in. Landlords copped a massive fine, but probably still ahead financially.

I remember hearing of a similar story in a northern suburb of Canberra

Cheers

Jamie

 

[wylie]

If there is one person posting lately who NEEDS a property manager, it would have to be you, JohnHenry.

Do you REALLY want to cram all those people into one house, packed into the living room in bunk beds? Do you really want to do that without the proper licenses and fire rated doors and fire escapes etc etc etc?

The cost of making a house compliant would be pretty high (I imagine). Why not just rent to a family or couple and do it legally and without all the extra risk.

 

[kathryn d]

I don't think the OP was trying to do anything illegal.
He didn't suggest he wanted to do it without all legal fire codes being adhered to, etc.

I think he was trying to understand the negative stigma that may be attached to this type of rental.

Of course, I may have misunderstood...

 

[Good Deeds]

Do you want to be a land lord or a slum lord?

 

[kathryn d]

Do you want to be a land lord or a slum lord?

How is this being a slum lord?
If maximizing your CF and offering clean, safe, inexpensive housing the only definition..sign me up.

 

[JohnHenry]

I don't think the OP was trying to do anything illegal.
He didn't suggest he wanted to do it without all legal fire codes being adhered to, etc.

I think he was trying to understand the negative stigma that may be attached to this type of rental.

Of course, I may have misunderstood...

Yes that's what I'd like to know if this is still legal or not and what's the possible consequences might be.

thanks to all who replied to my thread, I post this thread after I came from my friends place in Sydney CBD, yes they do live in World Tower (the tallest building in this continent) but then I was so surprised that they can fit in approx 8 people in the 3 bedroom apartment while paying cash one month in advance, the land lord must be very CF+ and able to buy another IP

 

[kathryn d]

Yes that's what I'd like to know if this is still legal or not and what's the possible consequences might be.

thanks to all who replied to my thread, I post this thread after I came from my friends place in Sydney CBD, yes they do live in World Tower (the tallest building in this continent) but then I was so surprised that they can fit in approx 8 people in the 3 bedroom apartment while paying cash one month in advance, the land lord must be very CF+ and able to buy another IP

Maybe you can answer a question.
Why are your friends living in this place?
Does the rent they pay reflect the limited space.
If they are unhappy, why dont they move elsewhere?

 

[wylie]

I wonder if the landlord where your friends live have any idea they have eight people living in the apartment .