Tenants want student boarders

[Nattl3s]

Hi all
Thank goodness I found this forum, honestly.
So my tenants (retired couple) have requested permission for "no more than 2 students to stay in the third bedroom". (3 bed 1 bath house). I found out my mums friend has an overseas student stay with her. The student pays $260 week rent which includes board and 2 meals a day - so this might be a similar arrangement ? there is no lease involved as far as I know.
So i was going to say yes, its nice of them to ask. They look after the place nicely so im sure that things will remain that way. (Been there 3 years). Probably will be increased maintenance. Im going to check about potential insurance issues. Havent spoken to PM yet.
Any comments or advice appreciated, thanks!

 

[D.T.]

What state is the property in?

What will be the arrangement between tenant and guests? What will be the arrangement between you and the guests? Who's responsible should something bad happen?

 

[Nattl3s]

Hi D.T

Property is in Brisbane City. Arrangement will be between tenants and students, i believe its fairly informal (non commercial / domestic arrangement as viewed by ATO), no written agreements as such, students pay monthly or fortnightly direct to tenants so they may be there for a few months or longer. I will have no involvement apart from granting tenants permission or refusing their request. Not sure about the insurance implications if someone gets hurt/ property damaged - going to check with insurance company. Cheers nat

 

[wylie]

If it is as they say, then I believe you really cannot withhold permission. They are not long term (generally - but could be) and my understanding of the rules (check with RTA) is that you cannot reasonably refuse.

I think checking with your insurer is wise but if that appears to be okay, I don't see the harm.

The problem would be if they are packing a bunch of them in under the guise of this reasonable request.

 

[citystar]

Sounds to me like they should be purchasing a place of their own in order to rent spare rooms out to student boarders. Not something I have dealt with before.

 

[Jamie M]

It's a good sign they've asked for permission - I'd take that as a positive.

Given they've been in the property for 3 years with a good track record - I personally would be ok with it (providing there were no insurance ramifications).

Cheers

Jamie

 

[depreciator]

I agree with Jamie. They have been good tenants and having students stay will help them stay there. Lots of people host international students - I have a mate in Brisbane who does it. Good on them for running it past you.

Scott

 

[Nattl3s]

Thanks for everyones replies.

So I checked with my insurance company and they are fine as long as no more than 3 unrelated people are living in the property.
Nat

 

[Peter_Tersteeg]

If the insurance is covered, then I'd let them do it. The could just as easily do it without permission and you'd be unlikely to find out and have little recourse if you did.

 

[Deltaberry]

You are running a business potentially - insurance may be void.

 

[vaughan]

Put the rent up.

 

[wylie]

You are running a business potentially - insurance may be void.

Insurer has confirmed they are covered. I would ask for it in writing.

This is not a business.

 

[ashes]

no more than 3 unrelated people are living in the property.

What is the definition of unrelated people?
Is a couple (2), please another two (2) students, four (4) people?
Does the couple count as a single person?