Queensland · Multi-Income
Co-Living Investment Property in Queensland
Purpose-designed homes with private ensuited rooms and shared living areas, rented by the room. Higher income per property, with more management and compliance to get right.
How it works
Rented by the Room
A Co-Living home is designed for several residents, each with a private bedroom and usually their own ensuite, sharing a kitchen, living and outdoor areas. Rooms are leased individually, so the property earns several rents rather than one.
Demand comes from singles, students, key workers and people priced out of renting a whole home. Rents per room are lower than a one-bedroom unit, but combined they can exceed the rent on a standard house.
The rules
Compliance Comes First
In Queensland, renting rooms with shared facilities can be rooming accommodation under the Residential Tenancies and Rooming Accommodation Act. Councils set how many residents are allowed without a planning approval; in Brisbane’s low-density zones, for example, that is generally up to five. Some providers also need registration under the Residential Services (Accreditation) Act 2002.
Read more on Co-Living and rooming house rules and Brisbane City Council’s rooming accommodation rules.
Rental guarantees
How Co-Living Rental Guarantees Work
Some Co-Living rental managers offer owners a rental guarantee, under two separate models. These guarantees are given and underwritten by the rental manager, not by the tenants, not by properT network and not by the Co-Living industry. Each rental manager decides at its own discretion whether to take a property on, and the terms are set out in its own management agreement.
1. Open market: 75% of market rent guarantee
The general open market model, with no head lease. It is offered on Co-Living homes of any size, from three bedrooms to eleven or more. It applies only once the property has first reached 100% occupancy. If occupancy later falls below 75%, the rental manager tops the rent up to 75% of market rent to cover the owner.
2. Head lease model: 10%* rental guarantee
A separate product for doctors, nurses and other staff in regional hospital towns. The rental manager advises it holds a head lease with the regional hospital. Whether one room or every room is occupied, the rental manager guarantees $350 per bedroom per week on a five-bedroom home: 5 × $350. The head lease applies only to this model.
*The 10% is not a guaranteed yield on any price. It is the guaranteed rent of $350 per bedroom per week expressed against the property’s value. For example, 5 bedrooms × $350 × 52 weeks = $91,000 a year, about 10% of a $910,000 property. A higher purchase price means a lower percentage. The head lease is between the rental manager and the regional hospital and has not been sighted by properT network.
Before relying on any guarantee:
- Have your solicitor review the rental management agreement, and any head lease you can obtain
- Check the rental manager’s track record and financial strength: a guarantee is only as strong as the business behind it
- Confirm when the guarantee starts, how long it lasts and what can end it
- Confirm the rental manager has accepted your specific property
- Make sure the numbers still work without the guarantee
Who it suits
Cash Flow Focused Investors
Trusts and SMSFs
Funds and trusts focused on net income (SMSFs now need to buy residential property without borrowing).
SMSF and propertyHands-off owners
Those who will use professional Co-Living management.
Brisbane and SEQ
Locations near jobs, transport, universities and hospitals.
Co-Living in Brisbane & SEQThe risks
Higher management, turnover and compliance costs; a narrower resale market.
Why I wouldn’t invest“Whenever you apply emotion to any decision, especially when it comes to investing, you’re guaranteeing yourself a lower return on investment, but only 100% of the time.”
More on Co-Living
The properT network Co-Living Site
Our dedicated site coliving.net.au covers how Co-Living investing works, return on investment and what to be mindful of. See also Co-Living on properT network.
Questions
Frequently Asked Questions
What is Co-Living property?
A home designed to be rented by the room, with private bedrooms (often ensuited) and shared kitchen and living areas.
Is Co-Living legal in Queensland?
Yes, but it may be rooming accommodation, with council limits on resident numbers and possible registration requirements. Check the rules for the specific property and council.
Are Co-Living rental guarantees given by properT network?
No. Any rental guarantee is given and underwritten by the rental manager under its own agreement, not by the tenants, properT network or the Co-Living industry, and the rental manager decides whether to take a property on.
Does Co-Living earn more rent?
Combined room rents can exceed the rent for a standard house, but management, turnover and compliance costs are higher, so compare net returns.
Strategy Before Property
Talk to Us About Co-Living
Book a complimentary strategy call with Stephen Lazar. We’ll look at whether Co-Living suits your goals and risk profile, and compare it with other options.
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Investment Property Queensland is one specialist site within the properT network group — the same independent advisory approach, applied across states and property types.
