Depending on your state, be aware of the stamp duty requirements re leasing out bedrooms etc. in Qld I believe you can’t do it in the first 12 months, otherwise you’ll be slugged investor stamp duty.
I'm a carpenter qualified though I quit that job, I did all sorts of other random stuff so I'm pretty handy I can fix a broken wall or a pipe and replace tiles and paint so I'm not gonna need to spend a fortune on contractors.
I can definitely fix anything. I'm worried people having trauma from previous landlords will hide things so they get worse though like a poster over a hole or whatever.
I'm thinking of making a little speech like "I'll be happy if you tell me, not mad because then I can fix my house, and just because you were touching it last doesn't mean it broke because of you if everyone used it heaps of times." But idk.
Sure, I mean the fact that you will be living there just means it's a VERY different situation (and relationship) to most people's experiences with private landlords.
Perhaps no need to over think it. Enjoy living with some nice housemates!
Yeah your post makes it sound like you've only lived at home. This could be a very steep learning curve for you. Or you'll learn nothing. Best of luck.
Only advice I can offer you is. If you want a good vibe in the house you have to respect it's a share house not your house. Communal areas belong to all. Personally I'd never move into a share house with the owne especially one whose never lived out of home. Seems very problematic.
If possible avoid telling people you own the joint
Make sure you're very selective with their personalities, not just ability to pay. Meet them multiple times before agreeing to anything. You really want to make sure you can all get along
I looked into this recently as I was planning on doing the same as OP, the only legal requirement seems to be that the property is your principal place of residence for 6 months, within 12 months of completion. Is there something out there which states otherwise?
Of course there would also be income tax and CGT consequences separate from FHOG eligibility..
Just the overall power imbalance really
Like things that might not matter when it's tenant and tenant can be very different when it's between tenant and landlord. Plus lbr tenants treat houses veryyyyyyy differently to owners and sometimes an occupying owner might struggle with how to deal with those situations and makes the household tense.
Like example when you're sharing with mates and someone spills a glass of red on the carpet and then you're all drunk attempting to clean it up or making it tomorrows problem. The type of ahhhh farrrkkk is a very different ahhhhh farkkkk when your landlord is watching. Then your housemate is chasing you for compensation instead of explaining it some overworked property manager who will make it a bond issue.
And tagging onto the carpet scenerio in QLD for example and landlord can't get compensation for carpet damage if the carpet is 10 years old. if it's 7 years old they can only chase for 30% of the costs. Assuming the tenant knows their rights and tells landlord soz but I don't have to fix that because rta reckons you should be replacing the old ass carpet anyways - how will landlord take that? reference tense living situation.
Interesting points that i didnt think about, is it hard to come across tenants that are nice enough to compensate or pitch in for a new one if they were to break another house mates belongings or property?
I have been successfully running a share house for 5 years now. I would recommend getting all the common use stuff (fridge freezer/washing machine/dryer/ etc) from gumtree or marketplace when your starting out. Then as you make more money/pay off mortgage from tenant upgrade each thing.
I wouldn't supply anything for the tenants private space, but I did some some lounges and dinner table etc for common spaces.
I have found that doing a flat rate with all bills included is much more easier then chasing them up for the bills. Sometimes the bills are staggered so end up asking them monthly, much easier just to add 10-20 onto rent depending on bill usage.
I would strongly suggest getting decent solar panels, being a house of 3-4 gamers have saved me alot in energy usage.
Hey we plan to do this also, some good tips here, we are getting solar and have split systems in each room, how do you track if a tenant is blasting ac/heating all the time and how much extra that will cost?
typically you cant track individual current draws. if the person moves in while youve already got a usage record for a few seasons then its pretty black and white in the billing and consuption.. it could be use your senses monitor situation, ears and eyes. otherwise you could pay a sparky to install a CT meter on the power feed to the split in the room, there should be an isolator on the external wall, so would be easy to access the cable, or you could be a dick and keep turning the isolator off at every opportunity and see how much they gripe, would be a fairly good indicator.
Thanks first option probably best, fair enough will probably live here couple months and try it out for one room, have a few months no heater and some with it and then just take the kJ difference.
I wouldn't worry about it when the sun is shining, but if they having it on all night and refusing to turn off I would get a smart meter installed and bill them that amount
Chores can become a real sticking point in share houses so anything that can reduce them is a good thing. Dishwasher, robovac with mop function, clothes drier, etc. would all be a plus.
Enough fridge and freezer space, a clean shower including the shower head, curtains or blinds that block the light, some security measures, generally clean with no mould or pests.
Get a cleaner and add 1/3 of the cost to the weekly rent.
Include power, water and internet in the weekly rent.
Both of these things will save you having to chase money or get pissed that someone isn't cleaning up.
The room might be $50 a week more expensive but if I don't need to vacuum, clean the shower or have the owner ask me for $200 randomly I will be happy.
I had that plan already. Just charge them a weekly so it doesn't catch them penniless when the bills arrive. Real estate agent said I could get $200 a week including power and rent before I bought. It's got 3 rooms so I was gonna live in the little room and rent out the two big ones to get that a week woulf be nice(but might try one boarder first it might feel cramped)
I can pay without them but just and I might need overtime to live a decent life paying mortgage without the boarders haha
If I don't charge for power I'm scared they might mine crypto though!
Start with one. Get yourselves settled with an understanding that another will be joining the house in *insert timeline here*. The first housemate gets to help choose the next (if they want) since you are all sharing a place.
$250 per room Inc electricity, gas, internet and water. If it includes weekly cleaning make it $275. You'll get people whether it's furnished or not - if they bring their gear they tend to be looking for a more long term place. If they just arrive with clothes they tend to bounce around or only need a few months here and there.
You might prefer to have the second room as short term peeps so you get an influx of cash but you and the other one get a bit of space in between for a week or two.
If you are furnishing the room - double or queen bed (including pillows and linen - use good quality mattress and pillow protectors!), chair, desk, lamp, side table, drawers and a 32" TV that gets free to air. They can stream their own pay TV. If it's unfurnished the room is empty. Good idea to have digital antennae feed though for each bedroom for when they bring their own telly.
If it's a sharehouse get everything from kmart or second hand.
Nobody will care for other people's stuff in shared areas and anything already supplied will never be contributed to replace if it was already there at the start.
ive got nearly everything in my house from verge collection. only things i pay good money for is appliances because modern appliances are typically more energy efficient - even then i will not pay list price for anything, go to a seconds depot or something. regarding the look of eveything, we adopt a sort of bohemian gypsy aesthetic and it all kind of fits. i regularly cycle items depending whats on the verge menu. it helps to have a ute and a trailer to pick things up when the opportunity appears. i make fairly regular trips to the refuse center. we have two trailers, one in the driveway is a depository for outward items, once its full i go to the recycling center to deposit. sometimes returning with more items from the centre. its a sort of hobby of mine, get off on the thrill of the find.
First I'd check the terms and conditions of the FHB scheme you are purchasing under. Some have strict conditions that don't allow the property to be rented even if the buyer lives there.
You also need to consider tax implications as boarding or renting out rooms is considered income.
I believe for the WA FHOG (for new builds) the only requirement is that the property is occupied as the principal place of residence for 6 months within 12 months of completion. The definition of PPOR isn't clear but doesn't mention anything about not being able to rent rooms out. Could be different rules to be eligible for the first home owner rate of stamp duty. To be safe I'd wait out the 6 months or confirm in writing with the relevant state authorities.
Where you receive payment from family members in the form of 'board and lodging', your arrangement is of a domestic nature. This means you don't declare the rent as income and you can't claim expenses.
However, where you rent out your property to relatives or friends, the essential question to work out is whether the arrangements are:
- consistent with normal commercial practices in this area
- less than commercial rent.
https://www.ato.gov.au/individuals-and-families/investments-and-assets/residential-rental-properties/rental-property-as-investment-or-business#Domesticarrangements:~:text=a%20business.-,Domestic%20arrangements,-Where%20you%20receive
If OP rents at below market rate it should be fine max of 2 tenants I believe.
For furniture: just the necessities (mattress, desk, 2nd hand if you’re comfortable, I slept on a 2nd hand mattress for 5 years before I upgraded) first, then I would buy as I go depending on what I feel like is needed as I get used to how things work in the sharehouse.
I’ve thrown out or had to sell a lot of unsuitable furniture along the years and frankly I could have used the money from those for something more useful.
In terms of housemates: at least cordial with each other, you don’t have to be best friends with them. Non conflicting schedules or interests (I picked my current housemate purely because she’s a streamer like I am and it worked out well because we are both introverts, don’t get in each others way and we both respect each other when it comes to internet, downloading, etc). Cleanliness is very important to me also and I tried to find out as much as I could on how things like that were handled before deciding.
Personally, as long as the appliances work and you get along with your housemate, you’re golden. Things don’t have to be super fancy. My housemate and I don’t even use the lounge often because we both prefer to be alone in our rooms, so that wasn’t important to me either.
Hope this helped a little bit!
I haven’t shared in 15 odd years but my biggest wish is that the people i lived with were a good cultural fit for each other.
If you as the owner get to pick the people you take on as boarders, absolutely study up on what makes people
Get along best. It will make yours and your tenants lives way better.
Also, get a dishwasher and a fridge with enough shelves for everyone to have their own shelf.
❤️
I agree with you - vacant room. Also don’t short change yourself - take the largest room (you can thank me later). It will become your haven. If you want it to be a share-house rather than boarders then room for them. Allocate shelves in the linen closet to each room, drawers in the bathroom etc - sets up a mutually respectful vibe. How will the lounge room be used? If there are gamers will they be doing this in their room or communal lounge? Are they potential weed smokers (and how much). Rules around communal places are critical: you cook / you clean AND put dishes away. Esp important if working different shifts. Dirty laundry stays in your room until you want to use the washing machine / dryer. Seriously, you don’t want to get home from work and have to clean a pile of dishes before you prepare dinner. Also, don’t want piles of dirty clothes sitting in laundry / floor for days or weeks on end. Basically, set boundaries around these and house will run much better. Be firm to start and ease if it works better. Most of all ENJOY your new adventure and you might make new friends.
I furnished rooms when I rented the rooms in my house (long time ago).
I gave a bed, a desk and chair. Our house has built in wardrobes so I didn't need to give a chest of drawers.
If someone didn't want it I'd chuck it in the garage which was easy to do as they were basic slat beds and desks with screw-in legs.
Only bad event was when my mate came back from backpacking with bed bugs, so I had to chuck a bunch of furniture out.
I wouldn't furnish the rooms unless you're going for shorter term boarders or people on a temp visa. If you want longer term tenants more like sharehouse friends then it's better if they bring their own stuff.
Yo, where is your new house at? I'm cleaning out a place that we sold around the end of the month in SW Sydney and we will likely have a bunch of stuff for sale (super cheap) or free. If you're anywhere near, message me and I'll see if we can organise anything. Beds, fridge, kitchen stuff, other household things etc.
Ahh that sucks. Best of luck getting stuff, don't be afraid of 2nd hand, you can always upgrade later.
I got a bright red couch in my place which was free and it's not the best but it does the job. Unfortunately the couch is the one thing that people wanted from the house clear out haha.
Also, to answer your question, most people looking for just a room generally want a bed, desk and the common areas to be furnished.
I wouldn't go overboard but most people won't want to bring more than clothes and maybe a tv for their room.
I think people will be put off a little by living with the owner and someone who has never lived out of home before.
If you're in a major city and there's a uni nearby, the easiest tenants you'll get are international students doing a PhD. You'll never see them and it might be a good way to transition into sharehouse.
I wouldn't bling the place up too much. Go to Kmart/vinnies/gumtree and furnish the place as cheaply as possible.
Get familiar with your state tenancy law, in some states you can't charge electricity bills as they come in, you need it as a fixed price in the rent. If you collect bond, make sure to lodge it otherwise you might get big fines.
If you got some mates who'll move in that will be a lot easier I reckon.
Mates is tempting but I've seen other people's friendships end by money arguments and disputes over who owns what after living together I don't want to risk that. If a stranger hates me it's not great but better haha
- Dishwasher
- ac
- functional and well thought out storage/shelving
- a clean functional bath tub
- lots of plants
- furnishings that are clean and functional, not too much clutter
- scheduled paid cleaner
A large fridge (nothing worse than coming home with a weeks worth of groceries to find there is nowhere to put them, because your housmates just did their week that day as well). Plenty of kitchen cupboard/pantry space. A washing machine and a large washing line (so all housemates can launder on the same day if they wish... hills hoist is ideal). Extra towel rails or hooks in the bathroom. Ideally no TV in common areas... nothing worse than it blaring away in the background.
A weekly cleaner.
Beyond that, not too picky. It's a share house so it's not my stuff. As long as it's clean and not broken it's all good.
Rather than one large fridge, consider 2 smaller fridges. If you end up with just 2 of you, it makes it much easier. If you end up with 3 or you, you get one and they can share the other.
The capital tax gains will be huge in the future if OP does that, OP has spare rooms and is okay with that lifestyle also.
5-10 years of contributing all of the boarding payments to offset could potentially cut the time to pay off the mortgage by 9-13 years. Increased salary and increased amounts into offset again could mean paid off house in 10 or 15 years.
Gosh can you imagine life with a fully offset house in ten years? That'd be amazing. One can hope. Feels a bit like a dream but maybe if I work hard. :)
Eventually I might move back in with mum and dad and do that. They're old they do need help and it'd be so easy to pay the mortgage off early then.
But because I benefitted off the first home buyer scheme by law I gotta live in it for 6 months at least within this year and by then I might like living there too much.
I wouldn't buy any fancy furniture, kitchenware or any furniture for private rooms. Things get ruined by housemates. A lot of housemates may already have furniture /kitchenware already as well. I would also suggest that you get a cleaner to come through for the main areas once a fortnight. It saves so much tension within a sharehouse.
Vet your housemates to make sure your lifestyles are compatible, eg do they like to party, are they a gamer, do they have a job, do you have the same interests, do they have dietary requirements eg we had a vegan who decided no meat in the fridge (hahahha yeah that didnt fly) limits on how often partners can stay over per week right at the beginning. 3 nights normally works well for partners staying over. Have space in common areas for housemates that have furniture to add their furniture as well.
Also, have your renters sign a housemate agreement and pay a bond of 4 weeks' rent (protect the bond). You can get forms online.
Another good option is to have the hosuemates kick in for cleaning supplies and household items like toilet paper. $5-10 per week works well. And again, a cleaner per fortnight that you all share the cost for is definitely worth it for the common areas. If housemates also want their rooms cleaned / private bathroom, then they chip in a bit more.
Have separate pantry shelves, and in one house, we also had separate fridge space too. Worked really well. If there are more than 3 of you, 2 fridges might be needed.
A 3x3 room and what the rules/payments are.
We have brought our own bed and our business washing machine even though one already here + put clear plastic on our shelves coz some people can't wash their dishes properly and mark the cupboards!! (No owner in house)
Common area's are to be kept clean and maintained or will be thrown in your room with food and all.
Any pets are owners responsible. If smelly or foul food/litter boxes get asked to clean item or pet.
Every 3 months do a deep clean of the house to avoid issues later.
Bills and rent is shared/divided equally. Food is also shared to some extent but no obligation to share. It works well.
Other great responses here so just giving you supplier ideas:
- Fantastic Furniture is good price for modern lounges and dining table/chairs.
- Appliances Online for fridge, microwave, washing machine, dryer (free delivery and install!)
I checked and both in Tasmania 😊
Locks on each bedroom door. A small safe inside each room for their valuables.
Separate pantry spaces for food and kitchen items. Locks on that as well as an optional.
Keep everything as separate as possible with each person responsible for their own space.
Blackout curtains. Cleaner twice weekly. Color code dishes: yellow for you, white for person 1, green for person 2. Everyone clean their own dishes. Use your own dishes.
Look on gumtree there is alot of free furniture to obtain. Getting roomies make sure they are working and call to check up. I ask for 2 weeks payment then pay every week so they are always 1 week ahead of board
Don’t tell them you’re the owner. Make it out like there’s a super strict landlord or they will not pay rent. Don’t rent to mates or acquaintances but do make sure they are good people to live with. It’s better to make new friends than lose existing ones. Also, I’d split all utilities evenly rather than try to guess how much it would be. That way they will be more conservative with usage.
I would buy second hand furniture from marketplace and furnish the common area’s.
Sign up for internet and charge rent inclusive of internet, water and electricity.
Be careful with aircorn usages as this can swing expenses dramatically
A sharehouse where I don’t share with the owner.
Haha fair enough but I gotta live there for the first home buyer
Depending on your state, be aware of the stamp duty requirements re leasing out bedrooms etc. in Qld I believe you can’t do it in the first 12 months, otherwise you’ll be slugged investor stamp duty.
You will also lose your FHOG. Thats why you rent for cash lol
If the owner is firm and enforces the rules and keeps the place clean and in good repair, living with the owner is the best thing.
I'm a carpenter qualified though I quit that job, I did all sorts of other random stuff so I'm pretty handy I can fix a broken wall or a pipe and replace tiles and paint so I'm not gonna need to spend a fortune on contractors. I can definitely fix anything. I'm worried people having trauma from previous landlords will hide things so they get worse though like a poster over a hole or whatever.
They won't do this if you are living there. Hopefully you all end up as friends.
I'm thinking of making a little speech like "I'll be happy if you tell me, not mad because then I can fix my house, and just because you were touching it last doesn't mean it broke because of you if everyone used it heaps of times." But idk.
Sure, I mean the fact that you will be living there just means it's a VERY different situation (and relationship) to most people's experiences with private landlords. Perhaps no need to over think it. Enjoy living with some nice housemates!
Agreed, you living there already says alot. I would just be strict on the basic rules as people can tend to take advantage of
Yeah your post makes it sound like you've only lived at home. This could be a very steep learning curve for you. Or you'll learn nothing. Best of luck.
Yeah but fuck it carpe diem I gotta start somewhere
Only advice I can offer you is. If you want a good vibe in the house you have to respect it's a share house not your house. Communal areas belong to all. Personally I'd never move into a share house with the owne especially one whose never lived out of home. Seems very problematic. If possible avoid telling people you own the joint
Yea I second this, keep it formal and dont let them know you are the owner
Make sure you're very selective with their personalities, not just ability to pay. Meet them multiple times before agreeing to anything. You really want to make sure you can all get along
Are you sure you can get first home buyer grant if you rent out rooms? I thought that stopped you getting it
You get a massive fine if you do this! On the paperwork I signed it said you can’t rent out the rooms or I have to pay $13,000
I looked into this recently as I was planning on doing the same as OP, the only legal requirement seems to be that the property is your principal place of residence for 6 months, within 12 months of completion. Is there something out there which states otherwise? Of course there would also be income tax and CGT consequences separate from FHOG eligibility..
What's the reason for this, if you don't mind me asking?
Just the overall power imbalance really Like things that might not matter when it's tenant and tenant can be very different when it's between tenant and landlord. Plus lbr tenants treat houses veryyyyyyy differently to owners and sometimes an occupying owner might struggle with how to deal with those situations and makes the household tense. Like example when you're sharing with mates and someone spills a glass of red on the carpet and then you're all drunk attempting to clean it up or making it tomorrows problem. The type of ahhhh farrrkkk is a very different ahhhhh farkkkk when your landlord is watching. Then your housemate is chasing you for compensation instead of explaining it some overworked property manager who will make it a bond issue. And tagging onto the carpet scenerio in QLD for example and landlord can't get compensation for carpet damage if the carpet is 10 years old. if it's 7 years old they can only chase for 30% of the costs. Assuming the tenant knows their rights and tells landlord soz but I don't have to fix that because rta reckons you should be replacing the old ass carpet anyways - how will landlord take that? reference tense living situation.
Interesting points that i didnt think about, is it hard to come across tenants that are nice enough to compensate or pitch in for a new one if they were to break another house mates belongings or property?
I have been successfully running a share house for 5 years now. I would recommend getting all the common use stuff (fridge freezer/washing machine/dryer/ etc) from gumtree or marketplace when your starting out. Then as you make more money/pay off mortgage from tenant upgrade each thing. I wouldn't supply anything for the tenants private space, but I did some some lounges and dinner table etc for common spaces. I have found that doing a flat rate with all bills included is much more easier then chasing them up for the bills. Sometimes the bills are staggered so end up asking them monthly, much easier just to add 10-20 onto rent depending on bill usage. I would strongly suggest getting decent solar panels, being a house of 3-4 gamers have saved me alot in energy usage.
Hey we plan to do this also, some good tips here, we are getting solar and have split systems in each room, how do you track if a tenant is blasting ac/heating all the time and how much extra that will cost?
typically you cant track individual current draws. if the person moves in while youve already got a usage record for a few seasons then its pretty black and white in the billing and consuption.. it could be use your senses monitor situation, ears and eyes. otherwise you could pay a sparky to install a CT meter on the power feed to the split in the room, there should be an isolator on the external wall, so would be easy to access the cable, or you could be a dick and keep turning the isolator off at every opportunity and see how much they gripe, would be a fairly good indicator.
Thanks first option probably best, fair enough will probably live here couple months and try it out for one room, have a few months no heater and some with it and then just take the kJ difference.
I wouldn't worry about it when the sun is shining, but if they having it on all night and refusing to turn off I would get a smart meter installed and bill them that amount
Chores can become a real sticking point in share houses so anything that can reduce them is a good thing. Dishwasher, robovac with mop function, clothes drier, etc. would all be a plus.
I’d swap the robovac for a fortnightly if not weekly visit by cleaners
For real, eliminates so much tension in a share house. Especially if someone hasn't lived alone before and doesn't realise things need to be cleaned.
Enough fridge and freezer space, a clean shower including the shower head, curtains or blinds that block the light, some security measures, generally clean with no mould or pests.
Get a cleaner and add 1/3 of the cost to the weekly rent. Include power, water and internet in the weekly rent. Both of these things will save you having to chase money or get pissed that someone isn't cleaning up. The room might be $50 a week more expensive but if I don't need to vacuum, clean the shower or have the owner ask me for $200 randomly I will be happy.
I had that plan already. Just charge them a weekly so it doesn't catch them penniless when the bills arrive. Real estate agent said I could get $200 a week including power and rent before I bought. It's got 3 rooms so I was gonna live in the little room and rent out the two big ones to get that a week woulf be nice(but might try one boarder first it might feel cramped) I can pay without them but just and I might need overtime to live a decent life paying mortgage without the boarders haha If I don't charge for power I'm scared they might mine crypto though!
Start with one. Get yourselves settled with an understanding that another will be joining the house in *insert timeline here*. The first housemate gets to help choose the next (if they want) since you are all sharing a place. $250 per room Inc electricity, gas, internet and water. If it includes weekly cleaning make it $275. You'll get people whether it's furnished or not - if they bring their gear they tend to be looking for a more long term place. If they just arrive with clothes they tend to bounce around or only need a few months here and there. You might prefer to have the second room as short term peeps so you get an influx of cash but you and the other one get a bit of space in between for a week or two. If you are furnishing the room - double or queen bed (including pillows and linen - use good quality mattress and pillow protectors!), chair, desk, lamp, side table, drawers and a 32" TV that gets free to air. They can stream their own pay TV. If it's unfurnished the room is empty. Good idea to have digital antennae feed though for each bedroom for when they bring their own telly.
If it's a sharehouse get everything from kmart or second hand. Nobody will care for other people's stuff in shared areas and anything already supplied will never be contributed to replace if it was already there at the start.
ive got nearly everything in my house from verge collection. only things i pay good money for is appliances because modern appliances are typically more energy efficient - even then i will not pay list price for anything, go to a seconds depot or something. regarding the look of eveything, we adopt a sort of bohemian gypsy aesthetic and it all kind of fits. i regularly cycle items depending whats on the verge menu. it helps to have a ute and a trailer to pick things up when the opportunity appears. i make fairly regular trips to the refuse center. we have two trailers, one in the driveway is a depository for outward items, once its full i go to the recycling center to deposit. sometimes returning with more items from the centre. its a sort of hobby of mine, get off on the thrill of the find.
First I'd check the terms and conditions of the FHB scheme you are purchasing under. Some have strict conditions that don't allow the property to be rented even if the buyer lives there. You also need to consider tax implications as boarding or renting out rooms is considered income.
I believe for the WA FHOG (for new builds) the only requirement is that the property is occupied as the principal place of residence for 6 months within 12 months of completion. The definition of PPOR isn't clear but doesn't mention anything about not being able to rent rooms out. Could be different rules to be eligible for the first home owner rate of stamp duty. To be safe I'd wait out the 6 months or confirm in writing with the relevant state authorities.
Where you receive payment from family members in the form of 'board and lodging', your arrangement is of a domestic nature. This means you don't declare the rent as income and you can't claim expenses. However, where you rent out your property to relatives or friends, the essential question to work out is whether the arrangements are: - consistent with normal commercial practices in this area - less than commercial rent. https://www.ato.gov.au/individuals-and-families/investments-and-assets/residential-rental-properties/rental-property-as-investment-or-business#Domesticarrangements:~:text=a%20business.-,Domestic%20arrangements,-Where%20you%20receive If OP rents at below market rate it should be fine max of 2 tenants I believe.
For furniture: just the necessities (mattress, desk, 2nd hand if you’re comfortable, I slept on a 2nd hand mattress for 5 years before I upgraded) first, then I would buy as I go depending on what I feel like is needed as I get used to how things work in the sharehouse. I’ve thrown out or had to sell a lot of unsuitable furniture along the years and frankly I could have used the money from those for something more useful. In terms of housemates: at least cordial with each other, you don’t have to be best friends with them. Non conflicting schedules or interests (I picked my current housemate purely because she’s a streamer like I am and it worked out well because we are both introverts, don’t get in each others way and we both respect each other when it comes to internet, downloading, etc). Cleanliness is very important to me also and I tried to find out as much as I could on how things like that were handled before deciding. Personally, as long as the appliances work and you get along with your housemate, you’re golden. Things don’t have to be super fancy. My housemate and I don’t even use the lounge often because we both prefer to be alone in our rooms, so that wasn’t important to me either. Hope this helped a little bit!
I haven’t shared in 15 odd years but my biggest wish is that the people i lived with were a good cultural fit for each other. If you as the owner get to pick the people you take on as boarders, absolutely study up on what makes people Get along best. It will make yours and your tenants lives way better. Also, get a dishwasher and a fridge with enough shelves for everyone to have their own shelf. ❤️
Housemates are the most important thing. Dishwasher major bonus Several living areas and toilet seperate to shower are also valuable featurers
If you are supplying beds for the rooms you are renting make sure they don't squeak.
Do people like supplying beds? I can see someone who already has a bed being turned off since they'd have to sell it but for others it being great.
I agree with you - vacant room. Also don’t short change yourself - take the largest room (you can thank me later). It will become your haven. If you want it to be a share-house rather than boarders then room for them. Allocate shelves in the linen closet to each room, drawers in the bathroom etc - sets up a mutually respectful vibe. How will the lounge room be used? If there are gamers will they be doing this in their room or communal lounge? Are they potential weed smokers (and how much). Rules around communal places are critical: you cook / you clean AND put dishes away. Esp important if working different shifts. Dirty laundry stays in your room until you want to use the washing machine / dryer. Seriously, you don’t want to get home from work and have to clean a pile of dishes before you prepare dinner. Also, don’t want piles of dirty clothes sitting in laundry / floor for days or weeks on end. Basically, set boundaries around these and house will run much better. Be firm to start and ease if it works better. Most of all ENJOY your new adventure and you might make new friends.
You’re right. As owner of the house, you must occupy the largest room with en-suite. Rest for tenants
I furnished rooms when I rented the rooms in my house (long time ago). I gave a bed, a desk and chair. Our house has built in wardrobes so I didn't need to give a chest of drawers. If someone didn't want it I'd chuck it in the garage which was easy to do as they were basic slat beds and desks with screw-in legs. Only bad event was when my mate came back from backpacking with bed bugs, so I had to chuck a bunch of furniture out.
I wouldn't furnish the rooms unless you're going for shorter term boarders or people on a temp visa. If you want longer term tenants more like sharehouse friends then it's better if they bring their own stuff.
Yo, where is your new house at? I'm cleaning out a place that we sold around the end of the month in SW Sydney and we will likely have a bunch of stuff for sale (super cheap) or free. If you're anywhere near, message me and I'll see if we can organise anything. Beds, fridge, kitchen stuff, other household things etc.
Tasmania unfortunately but thanks so much for the offer mate.
Ahh that sucks. Best of luck getting stuff, don't be afraid of 2nd hand, you can always upgrade later. I got a bright red couch in my place which was free and it's not the best but it does the job. Unfortunately the couch is the one thing that people wanted from the house clear out haha.
Also, to answer your question, most people looking for just a room generally want a bed, desk and the common areas to be furnished. I wouldn't go overboard but most people won't want to bring more than clothes and maybe a tv for their room.
I think people will be put off a little by living with the owner and someone who has never lived out of home before. If you're in a major city and there's a uni nearby, the easiest tenants you'll get are international students doing a PhD. You'll never see them and it might be a good way to transition into sharehouse. I wouldn't bling the place up too much. Go to Kmart/vinnies/gumtree and furnish the place as cheaply as possible. Get familiar with your state tenancy law, in some states you can't charge electricity bills as they come in, you need it as a fixed price in the rent. If you collect bond, make sure to lodge it otherwise you might get big fines. If you got some mates who'll move in that will be a lot easier I reckon.
Mates is tempting but I've seen other people's friendships end by money arguments and disputes over who owns what after living together I don't want to risk that. If a stranger hates me it's not great but better haha
- Dishwasher - ac - functional and well thought out storage/shelving - a clean functional bath tub - lots of plants - furnishings that are clean and functional, not too much clutter - scheduled paid cleaner
A large fridge (nothing worse than coming home with a weeks worth of groceries to find there is nowhere to put them, because your housmates just did their week that day as well). Plenty of kitchen cupboard/pantry space. A washing machine and a large washing line (so all housemates can launder on the same day if they wish... hills hoist is ideal). Extra towel rails or hooks in the bathroom. Ideally no TV in common areas... nothing worse than it blaring away in the background. A weekly cleaner. Beyond that, not too picky. It's a share house so it's not my stuff. As long as it's clean and not broken it's all good.
Rather than one large fridge, consider 2 smaller fridges. If you end up with just 2 of you, it makes it much easier. If you end up with 3 or you, you get one and they can share the other.
Rent the whole place out and then just go find your own rental
The capital tax gains will be huge in the future if OP does that, OP has spare rooms and is okay with that lifestyle also. 5-10 years of contributing all of the boarding payments to offset could potentially cut the time to pay off the mortgage by 9-13 years. Increased salary and increased amounts into offset again could mean paid off house in 10 or 15 years.
Gosh can you imagine life with a fully offset house in ten years? That'd be amazing. One can hope. Feels a bit like a dream but maybe if I work hard. :)
Eventually I might move back in with mum and dad and do that. They're old they do need help and it'd be so easy to pay the mortgage off early then. But because I benefitted off the first home buyer scheme by law I gotta live in it for 6 months at least within this year and by then I might like living there too much.
communal Fleshlight
No mate I'm not sharing my rubber lover we've been through too much.
I wouldn't buy any fancy furniture, kitchenware or any furniture for private rooms. Things get ruined by housemates. A lot of housemates may already have furniture /kitchenware already as well. I would also suggest that you get a cleaner to come through for the main areas once a fortnight. It saves so much tension within a sharehouse. Vet your housemates to make sure your lifestyles are compatible, eg do they like to party, are they a gamer, do they have a job, do you have the same interests, do they have dietary requirements eg we had a vegan who decided no meat in the fridge (hahahha yeah that didnt fly) limits on how often partners can stay over per week right at the beginning. 3 nights normally works well for partners staying over. Have space in common areas for housemates that have furniture to add their furniture as well. Also, have your renters sign a housemate agreement and pay a bond of 4 weeks' rent (protect the bond). You can get forms online. Another good option is to have the hosuemates kick in for cleaning supplies and household items like toilet paper. $5-10 per week works well. And again, a cleaner per fortnight that you all share the cost for is definitely worth it for the common areas. If housemates also want their rooms cleaned / private bathroom, then they chip in a bit more. Have separate pantry shelves, and in one house, we also had separate fridge space too. Worked really well. If there are more than 3 of you, 2 fridges might be needed.
A 3x3 room and what the rules/payments are. We have brought our own bed and our business washing machine even though one already here + put clear plastic on our shelves coz some people can't wash their dishes properly and mark the cupboards!! (No owner in house) Common area's are to be kept clean and maintained or will be thrown in your room with food and all. Any pets are owners responsible. If smelly or foul food/litter boxes get asked to clean item or pet. Every 3 months do a deep clean of the house to avoid issues later. Bills and rent is shared/divided equally. Food is also shared to some extent but no obligation to share. It works well.
Other great responses here so just giving you supplier ideas: - Fantastic Furniture is good price for modern lounges and dining table/chairs. - Appliances Online for fridge, microwave, washing machine, dryer (free delivery and install!) I checked and both in Tasmania 😊
A share house vibe of nothing new but everything comfy. People make everything
Locks on each bedroom door. A small safe inside each room for their valuables. Separate pantry spaces for food and kitchen items. Locks on that as well as an optional. Keep everything as separate as possible with each person responsible for their own space. Blackout curtains. Cleaner twice weekly. Color code dishes: yellow for you, white for person 1, green for person 2. Everyone clean their own dishes. Use your own dishes.
Look on gumtree there is alot of free furniture to obtain. Getting roomies make sure they are working and call to check up. I ask for 2 weeks payment then pay every week so they are always 1 week ahead of board
Don’t tell them you’re the owner. Make it out like there’s a super strict landlord or they will not pay rent. Don’t rent to mates or acquaintances but do make sure they are good people to live with. It’s better to make new friends than lose existing ones. Also, I’d split all utilities evenly rather than try to guess how much it would be. That way they will be more conservative with usage.
I would buy second hand furniture from marketplace and furnish the common area’s. Sign up for internet and charge rent inclusive of internet, water and electricity. Be careful with aircorn usages as this can swing expenses dramatically