Brisbane, Australia, is known for its youthful charm and sunny skies, but it also boasts one of the most competitive housing markets in the world. Government forecasts predict a stunning 16% population growth in the Queensland capital city as the area prepares to host the 2032 Olympic games. Paired with a 6% growth in housing costs, it’s easy to see why Brisbane is a property investor’s dream.
To solve the housing crisis, multi-residential rental properties like rooming accommodation and micro-apartments are gaining popularity. This niche market offers investors a lucrative opportunity while providing residents with affordable accommodations. As a result, Rooming House property management companies are popping up around the city. While Rooming Houses can be a wise investment, understanding the complexities of managing these properties is key for prospective investors. We’ll discuss the topic more closely below.
What is a Rooming House in Brisbane?
Before discussing property management, it’s important to understand Rooming Houses. A Rooming House is a five-bedroom home built as a Class 1B construction. Under Brisbane City Council regulations, a rental property can only house five unrelated parties to comply with fire safety regulations. That means each Rooming House can have five individuals, each renting a room under a separate lease.
Due to their potential for high yields, investors are increasingly drawn to the Brisbane Rooming House market. With the city’s growing housing undersupply, Rooming Houses are an attractive option for eager investors. At The High Yield Property Club, we aim for an 8%+ return per annum on our Rooming Houses. With such a high rental return, it’s clear why we’re the number one choice for those seeking stable and reliable passive income.
While investing in a Rooming House is the first step toward securing your financial future, you can’t stop there. Choosing the right property manager can make or break your investment. While it may be tempting to turn to a standard property management company, this could be a costly mistake. To ensure success, you need a proven Rooming House Property Manager to show you the way.
What is the Difference Between A Rooming House Property Manager and A Standard Property Manager?
While similar, Rooming House property managers are not the same as their standard counterparts. To start, Rooming House managers specialise in handling the complexities associated with these specific properties. Unlike traditional apartments, Rooming Houses contain both individual and shared spaces, each with its own upkeep requirements. Additionally, they are often in urban and suburban areas, demanding a comprehensive understanding of local ordinances, permits, and laws.
The tenants are also more specialised in Rooming Houses. Due to Brisbane law, each room houses a single renter, who generally falls into a specific demographic. Rooming House tenants are usually younger, hard-working individuals seeking an affordable housing solution. They make a decent income and seek a comfortable and safe rental opportunity. Rooming House Property Managers have an in-depth understanding of these specialised properties. They must also be trained to handle any adverse situations that may arise.
What Makes the Best Rooming House Property Manager?
Now that you see the difference between standard and Rooming House property managers, it’s time to discuss what to look for when choosing a Property Management company. At The High Yield Property Club, we work with a panel of property managers specialising in Rooming House property management. Unfortunately, very few property managers in Brisbane are truly Rooming House specialists.
High Yield Property Club Director Kevin Doodney has been a prominent figure in this niche market for over twelve years. As such, he’s familiar with the rooming house property management landscape. In the last twelve months, we have found there has been a surge in so-called Rooming House property management specialists. Strangely, they claim to have years of experience but are only now just entering the Brisbane market.
Beware of newly opened companies looking to maximise on this lucrative opportunity. Cheaper doesn’t always mean better, especially when dealing with $1 million+ assets. When managed correctly, Rooming Houses will provide the highest rental return possible, with cost-efficient maintenance. How can you tell a trustworthy, experienced Rooming House property manager from one trying to make a fast dollar? We’ll elaborate below.
They Understand the Social Impact of Managing Your Property
Rooming Houses are more than investment properties; they’re a legacy asset impacting future generations. A professional Rooming House property manager shouldn’t treat your Rooming House like it’s just a piece of property. Instead, they tend to it, meticulously managing the day-to-day operations and maintenance.
Using passive and active strategies, they should treat your property as an asset. Their expertise should ensure you receive the highest possible return on investment, generating years of stable, passive income in the long term.
They Understand Brisbane’s Tenant Demographic
Brisbane’s rental crisis has created unprecedented housing insecurity. Sadly, many property managers exacerbate the situation by capitalizing on the shortage. They lack empathy for the tenant in search of profit. Rooming Houses, when built with the ideal tenant demographic in mind, single-person households, provide an affordable solution.
The tenants renting Rooming Houses are valuable members of the community. They want to live harmoniously with those around them in convenient, affordable, and private spaces. Knowledgeable Rooming House property managers understand Brisbane’s specialized tenant demographic. They treat them with the care and respect they deserve.
They Know How to Create a Harmonious Space In Accordance with the Law
Brisbane has strict laws regarding residential tenants and lessors. Queensland Rooming Houses fall under The Residential Tenancies and Rooming Accommodation Act 2008. This 448-page document outlines the responsibilities and rights of the tenants, property managers, and landlords of residential rental properties throughout Queensland.
Ensuring all Rooming Houses adhere to the rules outlined in this extensive legislation requires a comprehensive understanding from the Rooming House property manager. They must clearly communicate the rules to the tenant during the onboarding process, ensuring complete comprehension. Additionally, they must maintain constant communication throughout their tenancy, enforcing and updating rules as time progresses.
They Must Understand Their Role In Rooming House Registration
As an investor, you are legally required to register your Rooming House. During the registration process, you will be required to include your associates, which includes your property manager. A qualified Rooming House property manager has the knowledge and expertise to understand this process.
Your rooming house property manager should be able to assist you with all criminal and police checks. Complying with regulatory requirements is vital to your long-term success, and your Rooming House property manager should be there to help.
They Understand the Value of an Attractive Living Space
A successful Rooming House must be more than four walls and a roof. It should meet the tenant’s emotional needs as well. Experienced Rooming House property managers understand the value of creating attractive, livable spaces by adding high-quality furnishings. Attractive, good-quality furniture with additional styling elements can dramatically increase a property’s visual appeal, increasing your rental return.
A top-quality Rooming House property manager will understand Rooming House furniture requirements simplifying this process. They should be able to help you include everything needed to create a stunning and welcoming Rooming House. They understand the importance of never using low-quality furniture. Instead, valuing and assisting you with durable, well-crafted, and stylish furnishings will help you increase your return on investment.
A Good Rooming House Property Manager Will Understand How To Get Your Asset Consistently Producing Income
Acquiring a Rooming House takes time, especially if you’re having it built. A quality Rooming House property manager understands you want to start producing income as soon as possible. They will work with you to make that happen. A trusted and proven property management company should begin working with you as early as the framing stage of the construction process.
Working with The High Yield Property Club, we work with the best rooming house property managers to ensure that they begin managing your property as soon as possible. Don’t waste time navigating the complexities of managing a Rooming House for yourself; turn to a proven rooming house property manager to show you the way.
FAQ
An experienced Rooming House property manager will understand their part to play in the registration process.
They know how to maximise your return on investment.
Additionally, a professional rooming house property manager will treat your tenants with the respect they deserve. They will also assist in the cost-efficient maintenance and cleaning of your property. Only use a company with long-established relationships with government providers and tenants, possessing the expertise to maximise your return on investment.
Conclusion
Brisbane Rooming Houses presents a unique investment opportunity in a city where affordable housing solutions are in demand. The potential for high yields, a steady income, and a positive social impact makes it an attractive option for investors. While lucrative, navigating this niche market with a qualified rooming house property management company is essential.
A specialised Rooming House property manager has the experience to understand all legal requirements while possessing advanced property and tenant management skills. With the right Rooming House property management company, investors can help meet Brisbane’s housing needs while achieving their financial goals.
Contact us to learn more about Rooming House Property management providers.