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Residential Tenancies Act - Part 5 of legislative changes - Rooming houses and shared accommodation

Writer's picture: Skye TaylorSkye Taylor

Updated: Jul 7, 2023

Just a reminder that none of these changes have been passed as yet, but its likely that it will come into effect in the near future as the government try to align our legislation with other states nationally.





What do we currently have?


This will likely not effect most property investors, as a rooming house is defined as a residential premises in which rooms for at least 3 people are available for residential occupation on a commercial basis. Tenants of a rooming house do not have the same rights as other tenants, including rights to possession and quiet enjoyment of a premises.


Typically these would be 3 or more individual tenancy agreements at the one address.


What might change?


It is recommended that the RTA specifically address individual lodges and those renting granny flats to ensure they are afforded similar protections to residents living in rooming houses.


The proposed change is to take the definition of 3 people down to 2, and to establish a registration scheme for rooming houses that have 5 or more residents and require ‘fit and proper’ person checks for proprietors.



What does it mean for you?


Likely that this will have little to no effect on most property investors. There are a number of properties (particularly in the CBD and surrounding campus universities) that may need to consider the purpose of their properties, as this may prevent them from having 3 or more tenancies.


The process to establish a registration scheme is lengthy and would more than likely be enough red tape and fees to persuade investors to try a different method.


Considering the current housing crisis, I would think this would or should be a low priority to be addressed, as it may increase the housing required if the current situation were to change.


I would envision current residents who are being housed now, may need to find alternative accommodation, and in the lower economic demographic, this just doesn’t exist, putting further pressure on the system and escalating homelessness.


Let's hope that the change makers realise this, as there is a high need for affordable housing, and whilst there may be rules that are being stretched by some less than desirable investors, at least this is housing for those that need it.



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