Rent by the room

[Rizowz]

Hi guys, I'm looking at buying a 4 bedroom property that is currently tennanted by the room. I was just wondering if somebody could give me a rundown on my responsibilities and obligations as a landlord when it comes to having individual tennants sharing one place as opposed to having say a couple/family in there one chief tennant or who is subletting to the others . I don't think you'd consider this a boarding house, the students living there are usually there the whole year and although they have individual locks on their bedrooms it's not much different from a normal flat/house. What's the story with having multiple tennancy agreements for the one property? Is it legit? Or am I better to have the place rented to one person and let them sort out who lives there.

I've done a good search of ptalk but I can't find the answers I'm looking for (did find the definitions of boarding house, a boarder and a flatmate though).

Cheers,
Rizowz

[SuperDad]

Hi Rizowz,

Just for clarification, when you say RBTR do you mean a property where the LL pays for all outgoings (e.g., phone, power, internet...), or simply a property where each room is rented individually, and the tenants pay for all outgoings.

This makes a huge difference at the moment (in respect to the RTA), but won't make a difference if the proposed ammendments to the RTA are passed in their current form.

Paul.

[Rizowz]

Gidday,

I would be including the water but tennants paying everything else that they so desire. What can you tell me about the proposed changes? Cheers.

[SuperDad]

At the moment RBTR, where expenses are included, fall outside the scope of the RTA (under the exclusion in section 5l of that Act). This exclusion is removed in the RTA Ammendent Bill currently under consideration.In your case, I would rent the property as a single 4 bed property, with all tenants named on the TA. Why? Because if John in Room 1 misses his rent payment, then you can chase not only John, but also Jack, Jill and Jane for the money.Paul.

[Rizowz]

Okay thanks for that. Just to clarify, if I were to rent each room seperately for a set fee including all expenses then we would both be exempt from the RTA - correct? Does this mean that in a technical sense there would be no requirement to even have a signed tennancy agreement etc? Is there any other act/law that this would fall under currently?

Yes I think if I was the successful buyer I would get these students signed onto a jointly named tennancy agreement.

One other question - even though I intend to keep the tennants on, does the current owner/landlord have to give 42 days notice (and as such make settlement atleast 42 days?) Can we make it shorter somehow?


Cheers and thanks for answering all my questions.

Rizowz