Spare room lodging in your own home

Students, short-term workers, contractors, people relocating and travellers who want a cheaper, longer stay than a hotel.

Weekly or monthly room rent, often with bills included. Nightly rates earn more per night but mean more cleaning, turnover and gaps between guests.

• Friendly and fair with people
• Organised with bookings and house rules
• Keeping shared spaces clean

• Rules differ by state and council, so check whether lodgers or short stays need approval or registration
• Check your home and contents insurance covers paying guests, and whether you need public liability cover
• Renting a room is often treated differently from a full tenancy, so check your state's rules on lodger rights and notice
• Rental income is usually taxable, so keep records and check your ABN and tax obligations
• Living with strangers affects your privacy and safety, so screen people and use a written agreement

Estimates suggest startup costs are typically around $500 to $2,500, depending on how much furniture and bedding you need, how you advertise and what insurance changes you make.

Monthly revenue is typically estimated at around $800 to $3,500, depending on how many rooms you rent, your rates and how long guests stay. Rental income is usually taxable, so keep records and check your obligations.

Rules differ by state and council, so check whether lodgers or short stays need approval or registration. Also check that your insurance covers paying guests, your state's lodger rights and notice rules, and your ABN and tax obligations.