Rooming Accommodation & what to consider

Renting a property out by room instead of the entire property (under what we know as a normal residential tenancy) isn't as simple as advertising rooms and hoping for the best. Of course the advantage of renting out rooms over the whole property as one could increase the owners rental return however there are some vital pieces of information you (and you client) need to consider before advertising a property as a rooming accommodation style tenancy.

Consider:

• Is the property approved by the Local Authority / Council to be used for rooming purposes?
• Does the Local Authority / Council have requirements or limits on how many unrelated people can reside at one premises?
• Has the owner got relevant insurance coverage for the property to be used for rooming purposes?
• Who would be responsible for the "common areas" within the property by way of cleaning, upkeep, maintenance etc?
• Have "house rules" been established for the property and each resident before a tenancy is entered in to?
• Does the property meet the required safety and compliance standards regarding fire & safety regulations?
• From an Agency perspective, do you have the resources and time to manage rooming accommodation verse a general residential tenancy?

Generally speaking, whilst it may look attractive to a property owner to rent a property out by the room and generate more income, it can come with some hurdles. Making sure that all the personalities under the one roof compliment and respect each other becomes a duty on you as the Real Estate Agent and Property Manager. You would also need to overseeing any communal area works, maintenance and upkeep. 

It's not impossible nor is it a bad idea, its just one that you have to research and prepare for and above all else, educate your property owner and client as to the pro's and con's before jumping in.