The implication of being a land lord with overcrowded properties ?

[JohnHenry]

Hi People,

I'd like to know if there is any serious implication or penalty in becoming a "slum lord" or a land lord who rent out the property to many people more than it should hold ?

Because when I'm going around in Sydney CBD area looking for a place for renting, it turns out that over crowding a rental property is a very lucrative business

for example, a normal 2 bedders and 2 bathroom apartment +1 locked up garage in Sydney CBD could cost you $750 per week, therefore it can be divided as follows:

Master Bedroom:
2 people / couple for $300

Secondary Bedroom:
2x bunk beds = 4 people x $ 115 = $460

Sunny Room:
2x bunk beds = 2 people x $125 = $250

Garage: used for storage or additional parking spot for additional $50 per week if lucky.

therefore in total you get $1010 + 50 = $1060 per week
or if you stay in the master bedroom yourselves, at least you just pay for $40 per week the shortfall assuming the rest of the rooms are fully occupied.

Those are a classic example where in average 8 people live in one single apartment, some apartment that I inspected got more people by sub dividing the living room as well, so in total approximately 10 people can go into one apartment.

Is there any law governing about this type of small and lucrative business ?

any thoughts and comments please ?

 

[depreciator]

Different states would have different rules. I received an email on Tuesday from one of our quantity surveyors who had just inspected a house in Canberra. It was newly built but had been reconfigured to have 9 bedrooms - most tiny. A few of them were in the garage. The property was being run as a boarding house, but was not advertised as such. And there were insufficient smoke alarms etc. There are lots of houses in Sydney like this, too. Most are full of Asian students. All is fine until the local council get wind of what's going on - often through a neighbour. Or until there is a fire or something like that.

 

[Terry_w]

This is probably a boaridng house in NSW as more than 5 people. See Boarding Houses Act 2012

 

[kathryn d]

JohnHenry,
I had to giggle when I read your post.I expect you to get bagged up really fast (and surprised it hasn't happened...yet)

Personally, I don't have a problem with this.If people are willing to rent small places, then that is fine with me. As long as there are sufficent smoke alarms.
Its no different than a family having 12+ kids.

 

[Jamie M]

Different states would have different rules. I received an email on Tuesday from one of our quantity surveyors who had just inspected a house in Canberra. It was newly built but had been reconfigured to have 9 bedrooms - most tiny. A few of them were in the garage. The property was being run as a boarding house, but was not advertised as such.

As a local, I'm surprised at how much of this goes on. A relative from overseas is living with his partner in something similar in one of the northern burbs. Sounds like an informal hostel.

Not sure about the legalities behind it. Which is something the OP will need to consider - if it's not above board, then no PM will manage it - nor will any insurance company cover it.

Cheers

Jamie

 

[JohnHenry]

JohnHenry,
I had to giggle when I read your post.I expect you to get bagged up really fast (and surprised it hasn't happened...yet)

Personally, I don't have a problem with this.If people are willing to rent small places, then that is fine with me. As long as there are sufficent smoke alarms.
Its no different than a family having 12+ kids.

Kathryn, well I didn't run it, just wondering about what could be the consequence if I were the land lord of the property.

In some cases, the smoke detector were turned off due to the Asian cooking is smoky. I guess this is the case of Bankstown apartment tragedy (a suburb in Sydney NSW) which cause one Chinese student leap to her death and one more suffering permanent disability.

 

[JohnHenry]

This is probably a boaridng house in NSW as more than 5 people. See Boarding Houses Act 2012

I saw similar ads in Gumtree, the owner (Chinese lady) showed to me the Victorian terrace house in Burwood, NSW is council approved boarding house even though it is subdivided to accommodate 12 people.

Personal room with indoor toilet bowl and kitchen sink $300 per week all bills included, while the small store room shack at the backyard is $190 with shared loo in different adjacent building for communal use (like kitchen and living room).

Very surprising that she said she could earn $3000 per week roughly cash in Hand Only.

 

[Matt9421]

Through my employment (emergency services)I have been to many many many overcrowded apartments in the CBD (Sydney) that have set off either a smoke detector or accidently knocked off a sprinkler head and caused massive damages to the apartments.
The overseas student was a common theme many with mattresses on the floor, sheets up to divide a room. Whilst some may see the dollar signs, you run the risk as some people already have said about not having sufficient fire protection equipent, or what is there being misused. Unfortunatly overseas students will not understand how our equipment works, ive seen clothes and sheets hanging off sprinkler heads, ultimatly knocking them off and flooding the room which ends up flooding the whole apartment
If anyone has seen a sprinkler go off.....you will agree there is usually a large repair bill tagged along. Water Vac's are useless! Rip it up and start again.

Just my two cents.....my very first post!!! haha

 

[datto]

I hate it when these overseas students start cleaning up the floors with a concoction of ammonia and bleach. Makes my eyes water.

 

[Waldo]

If anyone has seen a sprinkler go off.....you will agree there is usually a large repair bill tagged along. Water Vac's are useless! Rip it up and start again.

And of course if it is any way dodgy accomodation, the insurance will have none of it. Imagine the potential world of pain if it is in a multi-story block & starts flooding the appartments below.

 

[westminster]

And you can be prosecuted

http://www.abc.net.au/news/2012-10-13/lodgings-feature/4311724?section=wa

 

[JohnHenry]

And you can be prosecuted

http://www.abc.net.au/news/2012-10-13/lodgings-feature/4311724?section=wa

Wow that's happening in other state as well ?
I thought only in Sydney CBD

 

[westminster]

Wow that's happening in other state as well ?
I thought only in Sydney CBD

Yup 1000-1500 people arriving to Perth each week including many from overseas. Our vacancy rate is 1.9% which means a struggle to find rentals.

Foreign students, backpackers and newcomers are ending up in lodging houses as they are priced out of the rental market or not selected due to lack of rental references etc.

 

[Ed Barton]

for example, a normal 2 bedders and 2 bathroom apartment +1 locked up garage in Sydney CBD could cost you $750 per week, therefore it can be divided as follows:

Master Bedroom:
2 people / couple for $300

Secondary Bedroom:
2x bunk beds = 4 people x $ 115 = $460

Sunny Room:
2x bunk beds = 2 people x $125 = $250

Garage: used for storage or additional parking spot for additional $50 per week if lucky.

therefore in total you get $1010 + 50 = $1060 per week
or if you stay in the master bedroom yourselves, at least you just pay for $40 per week the shortfall assuming the rest of the rooms are fully occupied.

You're selling yourself short JH, you could get at least 4 people into the master bedroom, more if it has a walk in robe.

 

[marg4000]

Hi People,

I'd like to know if there is any serious implication or penalty in becoming a "slum lord" or a land lord who rent out the property to many people more than it should hold ?

Is there any law governing about this type of small and lucrative business ?

any thoughts and comments please ?

You must comply with Council and zoning requirements. Most councils have regulations regarding how many unrelated people can live in a property before boarding house regulations apply.

Possible consequences if you don't?

1. prosecution by council and/or State Government
2. invalidate any insurance
3. possible criminal charges in the event of a tragedy (google Childers backpacker fire).

Marg

 

[JohnHenry]

You must comply with Council and zoning requirements. Most councils have regulations regarding how many unrelated people can live in a property before boarding house regulations apply.

Possible consequences if you don't?

1. prosecution by council and/or State Government
2. invalidate any insurance
3. possible criminal charges in the event of a tragedy (google Childers backpacker fire).

Marg

Marg,

Thanks for the advice, yes now I understand, if there is anything bad happens to one of the tenant, then the apartment owner can also sue myself :-/

Prosecuted by the Council and State Govt. ? how they get involved in this case ? I believe that this is the matter between the building owner and the land lord or the person who runs this dodgy business.

http://au.news.yahoo.com/today-tonight/consumer/article/-/15182181/australia-slum-lords/