Unpacking Rooming Houses

Have you ever considered rooming houses as an investment?

These are properties that are rented out by the room and can be a great option for cashflow, especially if you need to balance out a portfolio that has a negative cashflow.

Compliance and terminology around room rentals varies from state to state, so depending on where you’re intending to deploy this strategy can be quite easy or sometimes difficult to set up

The key to a good rooming house is location, management, and insurance:

Location: Rooming Houses need to be near good transport, employment / University, shopping centres etc.

Management: Having the right property manager for this strategy cannot be emphasised enough. They must be people managers and be able to manage different personalities within the household. Selecting the right tenants that will blend well together is so important and can make or break the success of this strategy. Good rooming house managers don’t come cheap, expect to pay 12%+ in management fees for a good manager.

Insurance: It is important to obtain the right insurance policy for this strategy, most general insurers won’t cover this type of strategy, there are specialist insurers out there that do cover this type of property

I’ve developed specialised advice in this area and have had the opportunity to work on several rooming house projects. If this sounds like you, get started today and let’s deep dive into your current situation.