ROOMING HOUSES
The modern solution for savvy investors
What is a Rooming House?
A Rooming House is a dwelling that offers accommodation for multiple people under the single roof. Also known as a multi-tenant house, the Rooming House provides independent living facilities for each individual tenant including kitchen, bathroom, bedroom and living spaces and quite often a common or shared area that all residents have access to. Rooming Houses predominantly have a limit of 5 rooms and should be under 300m2 in total. There are requirements to provide adequate parking for all tenants and the property must have the appearance of a dwelling house being used for domestic purposes.
Unlike a Boarding House which is considered a commercial development, a Rooming House is a residential dwelling and therefore can be approved for construction in residential areas and is subject to fewer regulations, while still being subject to approval.
A Residential Home vs Rooming House Rental Return
Investors have gravitated to this type of development in recent years as a response to the housing crisis and increased demand for accommodation and the shortage of vacant land. Rooming houses are also a great way of increasing the return on investment for a rental property. A large residential home in the current climate generally attracts a single tenancy and often includes multiple tenants due to the cost of housing. The multiple tenants often do not all appear on the formal lease documents and therefore hold no responsibility to the condition of the home or the payment of rent. A Rooming House however is leased by multiple tenants on individual tenancy agreements, ensuring each tenant is legally responsible for the condition of their living quarters and the timely payment of rent. While there are additional costs associated with 5 separate tenancies, the earning potential is certainly optimised with a Rooming House arrangement.
Here is an example of potential rental returns based on a four bedroom residential home vs a Rooming House;
- This example is based on a completed Rooming House in Acacia Ridge, Brisbane QLD.
Do Tapscott Homes Build Rooming Houses?
At Tapscott Homes, we specialise in Rooming House design and construction. We have experience across concept to completion for Rooming Houses from Northern Rivers and Tweed in the south to Fraser Coast in the north. Our expertise and custom design experience allows us to tailor the design to your particular block. Whether you are seeking to build a Rooming House on a vacant block or complete a knockdown rebuild, we have got you covered. We also still offer our Tapscott Total Satisfaction Guarantee, Fixed Price Contracts and Guaranteed Build Times, so you can have peace of mind across all critical elements of your project.
Completed Rooming House by Tapscott Homes
The following 3D plan and gallery show a Tapscott Homes completed Rooming House in Acacia Ridge, Brisbane. The brief for this project was to create a Rooming House suitable for 5 individual occupants on a 521m2 block, with a 10m frontage. The design incorporates allocated parking for 5 vehicles at the entrance, which opens into a common area with fully equipped kitchen, a dining space, hidden laundry and then flows through to 5 individual self-contained apartments, including kitchen, living and dining combination, with separate bedroom and bathroom. The design allows for an abundance of natural light, while 3 of the 5 apartments has exclusive access to an outdoor courtyard area. The finishes include stone benchtops throughout, LED downlights, air-conditioning units and fans throughout, ample storage, laminate flooring, secure digital door locks and solar panels to power the dwelling.
The location of this Rooming House will achieve rental returns between $405 and $435 per week, per apartment.
