A rooming house is a type of investment property where each room can be rented out separately.
One of the requirements of a rooming house is a common area that includes one shared laundry, kitchen, and living area. There is at least one 7 to 10kg washing machine available in the shared laundry.
Each of the individual rooms is set up to have their own ensuite and study area.
Rooming Houses Are Great Real Estate Investments
High depreciation due to the level of fixtures, fittings, and furniture etc.
No Body Corporate fees (if only one (1) property on a block).
Supplies positive cash-flow and high rental yield to the investor
For a low-density residential block this is the highest and best use of the land
Only one set of rates are payable for the property.
It supplies affordable housing in valued locations
In many instances these properties are code assessable meaning they do not require any specialised development approval unless constructing two (2) or more dwellings on the block. However, we encourage to engage a draftsman or architect, alternatively we can recommend a professional.
Risk mitigation by having separate leases. If one person moves out, there are still other rents (from other occupied rooms) coming in until a suitable replacement tenant is found for the vacant room.