What is it?

Generally, rooming accommodation* is where a resident rents a room as the main place they live and:

  • the room is not self-contained, and

  • they do not have right to occupy the entire premises in which the room is located, and

  • they share facilities outside their room with other residents (e.g. kitchen, common room, laundry facilities).

Why choose it as an investment?

Rooming accommodation provides investors with high cash flows as well as high returns upon sale. For example, a standard 5 bedroom house may only give you $750 in rent per week if rented to one tenant. In rooming accommodation, you may rent out each room to a different tenant at $250 per week which is a total of $1,250 in rent per week putting $500 more in your pocket per week (i.e. $26,000 extra rent per year!). AND, if you sell a standard 5 bedroom house, you may only get $650,000 whereas a rooming accommodation may sell for hundreds of thousands more due to its attractive cash flow potential.

With increasing costs of living and single person households, rooming accommodation proves to be an increasingly popular choice of living. So if you're looking for an amazing cash cow or chunk deal, rooming accommodations may be a great investment for you!

How do I find out more?

At Chatham Projects, we'll manage the project from start to finish including researching the right area, sourcing potential sites, managing the build and finding the right agents.

*Note that each council will have their own definition of rooming accommodation.