What is a rooming house?
A rooming house is a building where one or more rooms are available to rent and four or more independent people in total can occupy the premises on individual leases. Rooming houses will also generally have a common area such as a shared kitchen or dining room.
In Victoria this is also known as Class 1B style accommodation and will usually range between four and nine rooms. In New South Wales and Queensland this may be referred to as a boarding house. Each state has different legislative requirements governing the operation of rooming or boarding houses.
Why do I need a rooming house manager?
Unlike a traditional residential property, rooming houses require a high-touch management approach to ensure their smooth operation. Selecting the right rooming house manager is vital to ensure that your rooming house operates smoothly and profitably.
As part of our rooming house management service, Certainty Property will take care of all of the day to day operations including:
- Collecting and disbursing rent
- Managing rental arrears
- Advertising, sourcing and screening tenants
- Signing lease agreements
- Incoming, outgoing and routine inspections
- Arrange maintenance and repairs
- Creating and enforcing ‘house rules’
- Compliance with applicable legislation
- Represent you at Tribunal as required
- Liaising with local council
Fundamentally, our role as rooming house managers is to act in your best interests to ensure your rooming house investment is as stress-free and profitable as possible. We take these obligations very seriously and are the only rooming house manager to offer a rent guarantee that aligns our incentives with yours.
Turn your property into a stress-free and profitable investment with Certainty Property.
How does your rent guarantee work?
Under Certainty Property’s rent guarantee, we will ensure that you always receive at least 75% of maximum gross rent on a monthly basis. That is, if gross rent is below 75% of what you would have received if the rooming house were at full occupancy, we will pay the difference ourselves.
Our rent guarantee means that we share some of the risk associated with vacancies and arrears, and means we have a strong financial incentive to make sure that your rooming house is fully occupied with minimal rental arrears.
The 75% gross rent guarantee applies to ‘next generation’ rooming houses. A rent guarantee of 50% of maximum gross rent applies for standard rooming houses given the differences in the tenant profile.
Certainty Property has strong experience in offering meaningful rent guarantees as the only residential property manager in Australia that offers a rent guarantee that covers vacancies, arrears and falling rents.
How does a ‘next generation’ rooming house differ from a standard rooming house?
‘Next generation’ rooming houses are those where each room has its own private en-suite and have generally been built from scratch as a rooming house. These rooms typically attract rent that is not dissimilar to a studio apartment.
Standard rooming houses are those that do not have private en-suites and are typically older properties that have been converted into a rooming house.
What are your rooming house fees?
Rooming house management fees typically range between 8.8% and 15%. Our full-service rooming house management fee is just 6.9% for ‘next generation’ rooming houses and 7.9% for standard rooming houses.
How are your fees so competitive?
Agencies have always avoided rooming houses because they require a lot more time relative to a standard residential lease. By streamlining our processes and investing in technology we are able to provide professional rooming house management and provide a rent guarantee at an affordable price point.
How do you source and screen tenants?
We have a sizeable tenant database and also pay for premium listings on real estate platforms such as realestate.com.au, Flatmates and Gumtree so we attract the broadest possible pool of prospective tenants.
Whilst there is strong demand for affordable accommodation having a rigorous tenant screening process is essential to ensuring the smooth operation of a rooming house. As the only rooming house manager that offers a rent guarantee we have a strong interest in ensuring that your rooming house is filled with quality tenants that pay the rent on time every time.
What areas do you service?
We manage rooming houses in Sydney, Melbourne and Brisbane.
Are you licensed?
Yes, we are licensed real estate agents in New South Wales, Queensland and Victoria. Legislation requires that rooming houses are registered and that the agents involved with managing the rooming house register as an ‘associated person’ with the relevant regulatory body. We can assist with this process.
How do I find out more?
If you’d like to engage Certainty Property to manage your rooming house or simply find out more please leave your details here and a member of our team will be in touch.