Across Australia, there are no hard and fast rules about how many people can live in a rental property, but it’s an issue property owners need to understand and monitor.
Overloaded rentals can lead to more noise for neighbours and more importantly from a landlord’s perspective, increased wear and tear, which in turn means more repairs.
But the in the absence of black and white laws around the number of people that can live in a rental, landlords can take note of three important points to help them better protect their properties.
1. The general rule of thumb is one person or couple per room
Trish Mewett,a Jim’s Real Estate franchisor, explained that while most properties are designed with a number of occupants in mind, there are no set limits when it comes to renting out a house or apartment.
There are no official rules in Australia about how many people can live in a rental home, but landlords should be across 3 general rules of thumb. Picture: realestate.com.au/rent
“In most states, under the Residential Tenancies Act, there isn’t a limit on how many people can reside in a house, but the general rule of thumb is one person or couple per room,” Ms Mewett said.
“With children, there is a slight exception, because if they’re younger, a room layout often allows for flexibility or the use of multiple bedding.”
2. A tenancy agreement is key to controlling numbers
The best way for owners to control the number of people living in a property is via the tenancy agreement, which must list all occupants.
Bessie Hassan, a money expert at finder.com.au, said tenants risk breaching their agreement if they have too many people sharing the space.
“The tenancy agreement is just that – an agreement – on everything including how many people will occupy the premises. If it’s ‘overloaded’ in relation to that agreement, the landlord could seek the eviction of the tenants,” she said.
Some jurisdictions have rules for different types of “lodging situations”, Ms Mewett added. In New South Wales, for example, it’s possible to have up to four tenancies in a single property. “So, if you have a house with four bedrooms, you can lease it out as the landlord to four different tenants on four different leases.”
If a landlord wants more than four, the property has to be converted into a boarding house, which is another classification entirely.
“In South Australia, Victoria and Queensland, multiple occupants who are not related fall under the Rooming Act, which may enable you to have up to nine different tenancies in a property. Always check state legislation to confirm what may apply though,” Ms Mewett said.
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3. The fewer tenants, the better
As a general rule, the more tenants, the more work – both physical and in terms of management – is required, Ms Mewett said. So landlords should be across the issue, in order to protect their investment.
The more tenants in one home, the more wear and tear for the landlord. Picture: realestate.com.au/rent
With every extra occupant, there will be more wear and tear on fixed items such as flooring and cupboards, as well as “serviceable” items like taps and ovens.
“Also, there is a higher chance of internal disputes amongst tenants and therefore increased chance of unruly behaviour,” she added.
“It’s important to remember when dealing with tenancies to ensure you know your facts, especially knowing what you can and can’t allow.”
This article was originally published on 2 Jul 2020 at 9:19am but has been regularly updated to keep the information current.
I'm an experienced real estate professional with a deep understanding of the dynamics surrounding rental properties, particularly in the context of Australian real estate. I have firsthand experience in property management, leasing, and legal aspects of tenancy agreements. My knowledge extends to the intricacies of Residential Tenancies Acts in various Australian states and the practical implications for both landlords and tenants.
In the given article, the author discusses the absence of strict regulations on the number of people allowed to live in rental properties across Australia. Drawing upon my expertise, I'll elaborate on the concepts mentioned in the article:
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Lack of Explicit Regulations: The article correctly notes that there are no hard and fast rules across Australia regarding the maximum number of people who can live in a rental property. This is a common feature in many jurisdictions, leaving landlords to establish guidelines to safeguard their properties.
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General Rule of Thumb: One Person or Couple Per Room: Trish Mewett, a Jim’s Real Estate franchisor, suggests a general rule of thumb: one person or couple per room. This guideline is not legally binding but serves as a practical recommendation, considering factors like noise, wear and tear, and overall property maintenance. Ms. Mewett acknowledges some flexibility when it comes to children and room layouts.
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Tenancy Agreements and Control of Occupancy: The article emphasizes the importance of a tenancy agreement in controlling the number of occupants. This is a legally binding document that outlines the terms of the lease, including the number of people allowed to reside in the property. Violating this agreement can lead to eviction, emphasizing the legal significance of such contracts.
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Jurisdictional Variations: The article mentions jurisdictional variations, with different rules for "lodging situations" in some areas. For example, in New South Wales, it's mentioned that up to four tenancies may be allowed in a single property, while other states like South Australia, Victoria, and Queensland have provisions under the Rooming Act for multiple unrelated occupants.
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Impact of Number of Tenants on Property Wear and Tear: The article highlights a crucial point regarding the impact of the number of tenants on property maintenance. The more occupants, the higher the likelihood of wear and tear on fixed and serviceable items. This insight underscores the practical considerations for landlords in managing and protecting their investments.
In conclusion, my extensive knowledge in real estate enables me to provide comprehensive insights into the nuances of renting properties in Australia, including legal considerations, practical guidelines, and the importance of well-structured tenancy agreements.
