Student accom

Hi - i am just thinking of renting out rooms in my currently tenanted house to students once lease is due.
Solely due to get a better rent return.
I am thinking Japanese students as I can speak Japanese and hopefully there would not be many issues with noise and complaints.
I wanted to ask is renting individual rooms to students legal?
I know banks don't take it into consideration as income.
I will have to fully furnish and manage it myself, higher turn overs of tenants/students, is insurance affected too.
 
If you need/want to release equity in that property - it would be best go get a valuation done beforehand.

Cheers

Jamie
 
Thanks for your reply
I was wondering if student accom was Legal (renting out rooms) incase neighbours complain

Its legal in a tenancy sense, but can be grey in a planning/local council sense - you should check with the council.

It does depend on how many rooms you were thinking of renting out separately.
 
as far as i know

In nsw, you can not have more then 4 unrelated individual live together if they all pay rent to you. such activity will be classified as illegal boarding house or guest house.

It is better to check with local council because they might have a different regulation.

although, I had lived in a house with 8 other people before, all of us were students around 2005, with out complaints, council never did find out about it. the owner is my uncle.

hope this helps
 
I've done over 40 of these student accommodations in SA.
Just converted the last one from our rent roll back to a residential listing.

Happy to have a chat about my experience.
Basically you have no support from:
Landlord insurance
Tenant damage cannot be claimed
Utilities bills can blow over and cannot be claimed against anything
Higher wear and tear
Higher turnover

I'm not a fan of student accom - any more!!!

Contact me if you want to have a chat from a manager perspective.
 
Hi - i am just thinking of renting out rooms in my currently tenanted house to students once lease is due.
Solely due to get a better rent return.
I am thinking Japanese students as I can speak Japanese and hopefully there would not be many issues with noise and complaints.
I wanted to ask is renting individual rooms to students legal?
I know banks don't take it into consideration as income.
I will have to fully furnish and manage it myself, higher turn overs of tenants/students, is insurance affected too.

I do this in Sydney, furnish out apartments and lease individually to uni students.

Banks have taken into account the rent from the properties provided you can show the rent coming into your bank account and have proper leases in place.

If you treat your tenants well, they tend to stay. I have a few students who have stayed on even after they graduated. The average tenure has been around the 12 months mark. I've found the key is a good internet connection with unlimited access. Students love it.

Good luck!
 
Hi, Do you have minimum terms or periodic lease and ask each student to sign a lease,
do they pay bond?
do you include electricity?
How to you work out what you could charge per room - look at share accom prices around the area?

I do this in Sydney, furnish out apartments and lease individually to uni students.

Banks have taken into account the rent from the properties provided you can show the rent coming into your bank account and have proper leases in place.

If you treat your tenants well, they tend to stay. I have a few students who have stayed on even after they graduated. The average tenure has been around the 12 months mark. I've found the key is a good internet connection with unlimited access. Students love it.

Good luck!
 
Do you have minimum terms or periodic lease and ask each student to sign a lease,
do they pay bond?
do you include electricity?
How to you work out what you could charge per room - look at share accom prices around the area?

1. A big YES
2. Another big YES.
3. Yes and internet. You have to if you rent each room individually.
4. Yes.
 
Hi, Do you have minimum terms or periodic lease and ask each student to sign a lease,
do they pay bond?
do you include electricity?
How to you work out what you could charge per room - look at share accom prices around the area?

Minimum lease - Yes, you need a signed contract to show the banks
Bond - Yes
Electricity - Yes
Charge - Look on Gumtree and University sites for comparables. In about 2-3 weeks is the best time for Uni rentals, that's when all the students go back so you can generally charge a bit higher.
 
For Qld

https://www.rta.qld.gov.au/Renting/...cy-agreements/Rooming-accommodation-agreement

From the site:


The rooming accommodation agreement must include

standard terms and any special terms (e.g. keeping pets, pest control)
the rent to be paid and any other costs including food, personal care or any other service
cost and frequency of rent payments which room can be lived in and what common areas they may use
the length and type of agreement, for example, periodic or fixed, for 6 months
house rules
whether a bond is charged and how much it is

Fast facts

It is a legally binding contract (also known as a lease).
It must be a written agreement.
The rooming accommodation provider pays any costs of preparing the agreement.
A bond does not have to be taken but if it is it must be lodged with the RTA within 10 days using a Bond lodgement (Form 2). If the rent is $500 or less per week, the maximum bond that can be charged is 4 times the weekly rent. If the rent is more than $500 per week, there is no bond limit.
If a bond is charged, a Condition report (Form R1) must be completed.

A resident should make sure they understand the agreement before signing it.



The Y-man
 
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