Student Accommodation Opportunity

[katrina]

Hi All,
I'm a first time poster to this forum so forgive me if this is in the wrong area.

I live in Queensland and have a conditional contract on an 8 bedroom home currently used for student accommodation. I understand now that the local Brisbane laws stipulate that only up to 5 unrelated persons can share a house for this purpose but there is an opportunity to increase this with the right approvals.

The Brisbane City Council have referred me to Fair Trading who cannot provide any advice on where to go to get these approvals.

I'm hoping that someone here can assist. The house is not in great condition but is near the University and currently supports 7 students on non-RTA contracts. We plan to replace existing bathrooms and repair kitchens, repaint and provide general maintenance.

To ensure that the investment is sound, we'd really like to continue to support 7 students so need to understand how do this. ? Also, if we continued with the current 7 students, can we be fined or would there first be a notice to remedy?

Thanks in advance for any advice you can provide

 

[marg4000]

You cannot get approval to increase the number of students unless you register your property as a boarding house and comply with all regulations (zoning, health and fire).

And yes, you can be taken to court if you breach Council laws, and 7 students is 2 too many under current laws.

There are currently crack-downs under way on illegal student housing in many suburbs.
Marg

 

[Rolf Latham]

Hi All,
I'm a first time poster to this forum so forgive me if this is in the wrong area.

I live in Queensland and have a conditional contract on an 8 bedroom home currently used for student accommodation. I understand now that the local Brisbane laws stipulate that only up to 5 unrelated persons can share a house for this purpose but there is an opportunity to increase this with the right approvals.

The Brisbane City Council have referred me to Fair Trading who cannot provide any advice on where to go to get these approvals.

I'm hoping that someone here can assist. The house is not in great condition but is near the University and currently supports 7 students on non-RTA contracts. We plan to replace existing bathrooms and repair kitchens, repaint and provide general maintenance.

To ensure that the investment is sound, we'd really like to continue to support 7 students so need to understand how do this. ? Also, if we continued with the current 7 students, can we be fined or would there first be a notice to remedy?

Thanks in advance for any advice you can provide

I think ur biggest issue will be if ever anything happens and u knew u were in breach of the regs?.........

Ta
rolf

 

[KiddHouse]

These laws have been effective since 1st July 2005

Hi,

This comes under "Budget Housing" and will fall under one of two catergories

A. Boarding house
You need to have the RIGHT kind of zoning permission and register with the Office of Fair Trading. The rules are extensive and the changes to make to a normal residential property (if you are lucky enough to have the the right residential zone) are expensive.

B. Student Housing / Budget Accommodation
You need to rent to "students" and keep records for this fact in case Fair Trading come knocking on your door.
You need to have a Fire Safety Management plan for any number OVER five or more unrelated people. (This does not mean you can rent to two couples and a single to get around the law)
Making the house compliant is not cheap.
YOu would need to include back to base smoke detectors, exit signs, exit lights, extinguishers. Monthly inspections by the real estate agent/landlord and bi-annual inspections with extinguishers and Electricians. to name only a few requirements.

Contact Brisbane City Council and ask who to talk to about Budget Accommodation for FIVE or more people in a sharehouse. I warn you, what you will hear will depress you. Real estates only care about "selling" and have no interest and ensuring a buyer is well informed. It is important to do sufficient due diligence BEFORE you sign.

ISSUES
Too many properties have operated illegally and with the fall of international students and the high Aussie dollar more are selling.
BCC are inspecting and will fine you if you are found.....it takes only ONE complaint and you are in trouble!

Articles
http://www.couriermail.com.au/quest...ent-overcrowding/story-fn8m0tyy-1226294829730

http://www.couriermail.com.au/news/...ational-students/story-e6freoof-1225897167218

http://www.accommodationmansfield.c...owded-student-housing-degrades-three-suburbs/

 

[KiddHouse]

Insurance

Insuring your investment is another issue.

Insurance companies like RACQ, REAL insurance and others will not insure you even for general insurance with no contents if you sublet rooms = if it is a Share House.

So, you think okay I can dodge the BCC fine and keep low. But what happens if a tenant uses a heater and causes a room to get smoke/fire damaged and you want to claim? The under writer will investigate the house, who rents etc... and say....you never disclosed this information- so we will not cover it!

Lots to consider with Share House accommodation in the Brisbane City Council area.

 

[Propertunity]

Insuring your investment is another issue.
Insurance companies like RACQ, REAL insurance and others will not insure you even for general insurance with no contents if you sublet rooms = if it is a Share House.

You could try these guys: http://www.pbinsurance.com.au/index.php/products_services/student_accommodation/

 

[katrina]

Hi,
You need to have a Fire Safety Management plan for any number OVER five or more unrelated people. (This does not mean you can rent to two couples and a single to get around the law)
Making the house compliant is not cheap.
YOu would need to include back to base smoke detectors, exit signs, exit lights, extinguishers. Monthly inspections by the real estate agent/landlord and bi-annual inspections with extinguishers and Electricians. to name only a few requirements.

Thanks so much to everyone who responded. All very valid points and certainly a few more things to investigate.

Since my last post, we have already gained quotes on all of the above. My conscience wouldnt allow me to have anyone in this type of accommodation (even if it ends up 5 and under) without full fire safety - that to me is a given.
I will try the BCC and Fair Trading again with regard to the zoning although did get the runaround from them first time. Hopefully I can get more information this time.

Thanks so much again.

 

[scottr]

student accom

you could try these guys
http://www.pbinsurance.com.au/index.php/products_services/student_accommodation/

I found there to be more information on this site (which is run by the same guys anyway)

http://studentaccommodationinsurance.com.au/

You are going to need to be VERY careful with this investment. Both in regards to BCC regulations (which are getting tighter and tighter) and also the insurance you get for the property. From my research the vast majority of insurers will not cover you and many brokers don't really know the ins and outs of the situation.

It's probably best to speak to someone who deals in this type of insurance day in, day out. Also, you may want to have a look here http://saia.org.au/ it seems to be the industry body.

Good Luck

 

[Simon]

Hi All,
I'm a first time poster to this forum so forgive me if this is in the wrong area.

I live in Queensland and have a conditional contract on an 8 bedroom home currently used for student accommodation. I understand now that the local Brisbane laws stipulate that only up to 5 unrelated persons can share a house for this purpose but there is an opportunity to increase this with the right approvals.

Market it to Tasmanian students? They'd all be related some way or another?

 

[Mamaof3]

Hi,
I'm not sure if this will be useful info or not but we owned a house with 9 bedrooms and 3 bathrooms. It had been rented to students for a number of years (with no issues) and yes technically did fall under the category of a 'boarding house' as it had more than 5 un-related parties residing there.

After a number of years of running it, we got tired and decided to change our strategy towards property development so we got rid of all our student accomodation, this 9 bedder being one of them. We sold it to an Investor who has also succesfully run it as 'student accomodation' for the past 6-7yrs (since we sold it). I guess the new owners wanted to make the place 'council approved' so they submitted an application to Council to convert this 'normal' house into something thats approved for 9 students. Anyway, i had a bit of a read of the council notes and it appears that they've approved it (with conditions such as no onsite car parking, no parties or loud music/noise after 9pm weekdays etc) based on what appears to be, the fact that its been running as 'student accomodation' without any issues for the past number of years - this is a normal residential house in a residential zone (where student accomodation is not a listed preferred form of development).

So i guess you could try your luck doing it that way based on its history.

Alternatively, if you are single with no family, you could reside in 1 of the rooms and rent out the remaining 6 and it would not be any issues at all given it will be your principle place of residence

Good luck.