Browse Forums Real Estate 1 Dec 15, 2008 8:27 pm Bit of a strange question here, but just wondering if anyone could share their experience with taking on a boarder.
We've owned (well mortgaged) our 3 bedroom home in essendon area (melbourne) for the last 2 and a bit years, with just the two of us. A couple friend of ours (renters) have recently sublet one of their rooms to another couple friend, and they are enjoying the extra cash and haven't got too many gripes. So we were thinking of renting one of our rooms out to a single or couple on a 6 month trial basis. My partner would much prefer it if we knew the people moving in, where as I think it could possible cause friendship rifts! Are there any other major considerations we should think about first?(legal, financial, insurance etc?) thanks in advance zomtom Re: taking on a lodger/boarder/renting a room 2Dec 19, 2008 6:30 pm One of my clients, a single girl, rented one of her spare rooms out to a male friend, in the end she couldn’t wait to get him out!
Better off renting to a stranger, that way you won’t feel so bad if you need to get them out if things don’t work out. I can see financial gain here, IF, they stick to their end of the deal in the rental outline. I couldn’t do it, I like my space too much, but good luck with it. Let’s see what others say. Internal and External Building and Colour Consultant Online - Worldwide http://www.denovoconcepts.com Re: taking on a lodger/boarder/renting a room 3Dec 19, 2008 6:58 pm only if they had their own bathroom (and had to clean it)
I've never had to live in a share house - but friends have it requires a certain amount of relaxed attitudes about other people's behaviour! After 4 years - we're in! Re: taking on a lodger/boarder/renting a room 4Dec 19, 2008 10:27 pm Personally I wouldnt do it, unless I had a very big house and it was set up in such a way that the boarder could come and go independently of the household eg a granny flat out the back.
I lived in share houses from the age of 18 till around 30 something and had some of the best times of my life. But once you have established a culture with your life partner it is quite hard to change. It is also hard for the lodgers themselves, especially in the post 30 age group.....we get a bit fussy. The bummer is that you would soon get used to the extra cash.....but you may never get used to the 'invaders' bad habits. The risk is too great for me. I would rather skip going out for dinner, less clothes shopping, tun off lights etc to get extra cash flow. There is a lot to be said for sitting down and filling out an online budget planner to see where your dough is really going. Re: taking on a lodger/boarder/renting a room 5Dec 20, 2008 7:07 pm This idea raises many possible issues (to me) with insurance of their possessions etc. What would happen if a fire started in their rooms? Would you be covered as you were virtually operating a boarding house? And what the tax man could make out of undeclared income?
What would happen if they lost their jobs & income, how could you evict them? The mind boggles. Arfur Re: taking on a lodger/boarder/renting a room 6Dec 21, 2008 8:34 am 7 yrs ago when we were renting, rented out our spare room. The girl was nice but her boyfriend came over 2 to 3 nites weekly. Anyway she moved out after 6mths. The going rate was about $90 p/w including bills. Spoke to a lady who is renting out her 4 b/room investment property $200 each to student near Uni. She even employed a cook for them for dinner. Re: taking on a lodger/boarder/renting a room 7Dec 30, 2008 1:36 pm Hi Zomtom,
Just like any rental property, you have to be very thorough with your pre-tenant checks. Although you are not a rental agent, you should still ask for references from any prospective tenant and contact these people to see if there were any issues etc. You will also need to have a formal agreement (lease), as although many people have boarders there are some legalities relating to people staying in your home that you earn an income from- if you don't have a formal agreement and you want to claim a percentage of house hold repairs as taxable deductions (which you can for the % of the home that is rented out) you would need to keep sound records for in the event you were ever audited. You can usually buy a simple lease kit from your local news agency. Re: taking on a lodger/boarder/renting a room 8Dec 30, 2008 2:08 pm If you had a house with ensuites attached to each bedroom I think the idea would be great.
A house like that would sufficiently big that space would not be a huge issue. Re: taking on a lodger/boarder/renting a room 9Dec 30, 2008 2:10 pm i would assume if you did it by the books when it came time to sell you would possibly have additional tax to pay given that part of the house was a business? i know for people who run above board home businesses they have to consider this. Is it the same for renting out a room? Re: taking on a lodger/boarder/renting a room 10Dec 30, 2008 3:33 pm That is techinically correct, if your doing it by the books that is.
The percentage of the room that it takes of the house + the percentage of time of ownership of the house it was rented less the purchase price and selling costs would have to have tax paid on it. Re: taking on a lodger/boarder/renting a room 11Sep 01, 2010 1:35 am I recently started doing this and so far so good. Wasn't a friend but we did have some mutual friends which I think is a good way to go about it, friendships shouldn't be ruined if things go bad but its not a total stranger moving in either. The bedrooms have their own individually keyed locks which I would definitely recommend. A 4x2 with plenty of living space also comes in handy given it is only the 2 of us. Saying that I did live alone and had no partner so the additional company was a positive for me. If I had bought and lived with a partner things might have been different. Built with RedInk Custom 5000 Key Handover 15/12/2009 Re: taking on a lodger/boarder/renting a room 12Sep 01, 2010 9:21 am Hello! I lived in share houses from the age of 18 to 30 something too. I finally bought my own apartment at age 30 and had a lodger. He was the most boring person I had ever met, (a nuclear physicist). He didn't know how to clean up the kitchen after he'd cooked, didn't have a sheet on his bed until I told him to buy one and put it on there (yes, he slept on his bare mattress). . . but after a bit of teaching, he learnt how to do all of these things. He was probably my best flatmate ever. Always paid his rent on time, didn't have wild parties or girlfriends round all the time (had no friends or girlfriends), once I banned documentaries from my TV he just used to sit in his room and read instead. Hardly ever saw him. I was single back then though. No way would I take a lodger now, would be a bit of a strain on the relationship I think. Would be nice if you had separate living areas and bathrooms though, you could just tell them which was theirs and only ever meet in the kitchen!!! I wouldn't move in with a friend again as the frie Re: taking on a lodger/boarder/renting a room 13Sep 01, 2010 10:29 pm DH and I lived with a couple in London who were friends of ours in Australia for 18 months. We lived in a 2 bedroom, 2 bathroom apartment. No way could I share a bathroom with anyone else (don't even like sharing with my husband!) It worked for us because we knew it was for a short time, for a purpose (to save for our house deposit) and wasn't real life. The novelty wore off after a year and that last 6 months were hard. I don't know that I could do it here. We also lived with two singles in London and I'd prefer living with a single - hearing another couple argue is a bit ackward. I'd say go for it, if it is for a specific period of time with an end date. I also recomend getting a cleaner (we didn't - my friend had moral objections, and cleaning was the source of much angst) and having separate bathrooms is a must. Re: taking on a lodger/boarder/renting a room 14Sep 06, 2010 4:23 pm My partner's brother and his girlfriend had a 4 bedroom, 2 storey house, and it has a rumpus room / studio downstairs (the only room on that level), and they rented it out to a guy a few years ago. He was kinda weird, but nice enough. VERY quiet, always kept to himself. Paid his rent on time, etc. I'm not sure how they found him. Through an ad, or a distant friend of a friend maybe... Then one day they came home to find he'd just left. He didn't owe any rent or anything, but...bit odd. There was no written contract or lease or anything. Weird. I'd never do it, myself. Only cause (a) I am an ULTRA private person and have never even had a roomate or shared with a friend (only my partner), and I'm just not comfortable living with or around anyone I'm not basically in a relationship with (or my parents, who I lived with for the first 25 years of my life and although I'm 32 now, and don't want to move back with them, I COULD do it and not be miserable), and (b) I've never had a big enough place to FIT a boarder! lol They'd have to sleep in the bathroom! How the hell did I become a senior member!? I know nothing! Re: taking on a lodger/boarder/renting a room 15Aug 09, 2014 12:45 am Hi, My husband and I rented one spare room to a professional lady for 9 months- she was no trouble, cooked and cleaned up after herself, paid her rent on time, she didnt clean the living room or dining area but it was ok for us. When she decided to rent her own unit, we were sad to see her go. We then rented the room to a couple, both studying and working part time. The first time they used the kitchen, the girl took 3 hours to cook for dinner, subsequently 2hrs almost everyday and basically created a big mess in the kitchen.I had to cook after them as I normally come home late and slowly we bought takeaways to avoid eating too late. For one month they did not wash the bedsheets , pillows and the room started to smell. I hsd to remind them to do their laundry and wash their own toilet and bathroom every two weeks. They argued with each other very often and we would turn on the volume of the TV to kill the squabbles, the last straw was we were told off when we put our laundry in the washer in the evening, we were being accused of disturbing them while they were trying to sleep at 9pm?! Their lights were on till midnight everyday. needless to say we booted them out after 5 weeks and found out later they have moved 4 houses in 9 months! They became hostile and aggressive and it was very stressful for us finally they left and I had to clean up the filthy room/ bathroom Lesson learnt -check reference and be upfront and set house rules right from the start and rent only to a single person. Re: taking on a lodger/boarder/renting a room 16Aug 09, 2014 3:04 pm Some misinformation here. If the person is a boarder you do not need to pay % when selling (but you do if renting out part of your home). Slightly different than a boarders as you are sharing the home. Also as the person is a boarder, not renting a separate part of a house (as in renting) insurance is not an issue. A boarder is technically supposed to contribute to the running of the house (as opposed to a renter). The money they pay cointributes to the household costs (mortgage, electricity, food etc). So they are just paying their share therefore it is not a money making exercise. The ATO ruling is quite lengthy and confusing. It depends how you set it up. It is different to renting out part of your home (say a granny flat). If you want to claim tax refunds etc then you must also declare the income (of course) and it may affect your CGT. Most people like a less formal arrangement (which comnes under boarders). It is not for everyone. I lived in a share house when younger ( we helped the owwner pay off his mortgage quite quickly). With I'd thought of it all those years ago. My daughter bought a house and had a boarder for the first 2 years before she had children. They shared a bathroom which I wouldn't like. But I did it when younger. It depends how much you value your privacy. But I would be wary of doing it with friends as it can get awkward if things go sour. Why not try it with a 6 month lease. If it doesn't work just cancel. We've had the offer of a short term tenant whilst waiting for CDC/DA home approval and demolition for our knock down rebuild. 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