Small boarding house with several rooms

Workers on lower incomes, apprentices, students, seasonal and contract workers, and people between homes who need a furnished room.

Weekly or monthly rent per room, with bills usually included. Income depends on keeping rooms filled and keeping running costs under control.

• Managing people and resolving disputes calmly
• Property upkeep and basic budgeting
• Organised record keeping and rent collection

• Boarding houses are often regulated, with registration, room size, fire safety and building rules that vary by state and council, so check before you commit to a property
• If you lease the property, check the landlord allows boarding house use
• Check insurance for public liability, building and contents, and workers compensation if you hire cleaners or a manager
• Check your state's rules on lodger rights, bonds, notice and eviction
• Empty rooms and repairs affect cash flow, so keep a buffer

Estimates suggest startup costs are typically around $15,000 to $60,000, depending on the property, how you furnish the rooms and what compliance work is needed. Check the figures against your own property and plans.

Monthly revenue is typically estimated at around $5,000 to $20,000, depending on the number of rooms, your rates and how full the house stays. Empty rooms and repairs affect cash flow, so keep a buffer.

Boarding houses are often regulated, with registration, room size, fire safety and building rules that vary by state and council, so check before committing to a property. If you lease, check the landlord allows boarding house use, and check lodger rights, bonds and notice.