Co-Living & Rooming House Rules by State

Co-living, rooming houses, boarding houses and share houses all put several unrelated people under one roof. To a council or a state regulator, the label on the brochure matters far less than how many people live there and how the rooms are let. Get it wrong and an investor can face fines, an order to stop letting rooms, or a property that cannot be insured or financed as expected.

This guide explains, state by state, when a co-living property becomes a regulated rooming or boarding house, what that means for you as the owner, and what to check before you buy.

Short version: in most states, once a property is let room-by-room to around four or five or more unrelated residents, it falls under rooming house, boarding house or residential service rules. In Victoria the threshold is four residents. Always confirm with the local council and your state regulator before you buy.

Co-Living, Rooming House or Share House: What’s the Difference?

Model	How it is let	Typical regulation
Share house	One lease for the whole property, signed by the group of tenants	Standard residential tenancy rules
Co-living (purpose-built)	Each resident has their own agreement for a private suite, sharing some common areas	Often treated as a rooming / boarding house once resident numbers pass the state threshold
Rooming / boarding house	Rooms let individually to unrelated residents who share facilities	State rooming or boarding house laws, council registration, building and fire standards
Large-scale co-living (NSW)	Purpose-built developments of six or more private rooms with a manager	NSW Housing SEPP “co-living housing” planning rules

Many purpose-built co-living homes are designed with four to six private suites, each with an ensuite. That design is exactly what makes the income work, and exactly what can bring the property into the rooming house regime. Read more in Rooming houses explained and NDIS property vs co-living homes.

State-by-State Rules at a Glance

State	When the rules apply	Who regulates	Key obligations
Victoria	Rooms available for occupancy by 4 or more people for rent	Consumer Affairs Victoria / Business Licensing Authority; local council	Operator licence; council registration; Rooming House Standards (e.g. 7.5 m² minimum rooms, lockable doors, heating, window coverings)
Queensland	Residential services with 4 or more residents renting rooms and sharing facilities	Department of Housing (Regulatory Services); RTA; council; QFES	Registration, Level 1 accreditation within 3 months, building compliance notice, fire safety plan; Form R18 rooming agreements
New South Wales	General boarding house with 5 or more paying residents; “co-living housing” of 6+ rooms under the Housing SEPP	NSW Fair Trading; local council; NSW Planning	Register with Fair Trading; council inspection; occupancy principles; planning approval, room sizes and an on-call manager for co-living housing
South Australia	Rooming house: 2 or more rooms let; “designated rooming house” with 5 or more rooms	Consumer and Business Services (CBS); Housing Safety Authority	Register designated rooming houses with CBS, lodge bonds, house rules, security and minimum housing standards
Western Australia	Lodging house for more than 6 lodgers	Local government (Health (Miscellaneous Provisions) Act 1911)	Register the lodging house and keeper with council; on-site or nominated keeper; council health standards
ACT, Tasmania, NT	Varies	Territory or state regulator and local council	Check boarding house, building and fire safety requirements locally before buying

Victoria: Rooming House Rules in More Detail

Victoria has the most developed rooming house framework in Australia, and it applies to many co-living homes. A rooming house is a building where one or more rooms are available for occupancy by four or more people in return for rent. If your property meets that test, there are three separate obligations:

• Operator licence. Under the Rooming House Operators Act 2016, the person or company operating the rooming house must hold a licence from the Business Licensing Authority. Penalties for operating without one are significant.
• Council registration. The premises must be registered as prescribed accommodation with the local council under the Public Health and Wellbeing Act 2008.
• Minimum standards. The Residential Tenancies (Rooming House Standards) Regulations 2023 set requirements for each room and the common areas, including a minimum room size of 7.5 m², a lockable door, power outlets, window coverings, heating, and enough bathrooms and toilets for the number of residents.

Victoria’s new rental minimum energy efficiency standards also start from 1 March 2027, covering insulation, heating, hot water and later cooling and draught-proofing. A purpose-built, new co-living home is far easier to comply with than an older house converted into rooms. We compare the two in Existing Homes vs New Builds.

Queensland: Residential Services and Rooming Accommodation

In Queensland, a property where four or more residents each rent a room and share facilities such as bathrooms, kitchens or laundries is generally a residential service. The operator must register it with the Department of Housing’s Regulatory Services, obtain at least Level 1 accreditation within three months, provide a building compliance notice from council and a fire safety plan. Residents sign a rooming accommodation agreement (Form R18) under the Residential Tenancies and Rooming Accommodation Act 2008, and the Residential Tenancies Authority holds the bonds.

New South Wales: Boarding Houses and Co-Living Housing

NSW separates two ideas. Under the Boarding Houses Act 2012, a general boarding house accommodating five or more paying residents must be registered with NSW Fair Trading and is inspected by council. Under the Housing SEPP 2021, “co-living housing” is a planning category for developments of at least six private rooms, with minimum room sizes (around 12 m² for one person, 16 to 25 m² for a couple, excluding kitchen and bathroom areas) and an on-call manager. “Boarding houses” in planning terms must now be affordable housing managed by a registered community housing provider.

South Australia and Western Australia

In South Australia, a rooming house is any property where two or more rooms are available to rent, and a designated rooming house (five or more rooms) must be registered with Consumer and Business Services. In Western Australia, a lodging house for more than six lodgers must be registered with the local council, with a registered keeper responsible for the property.

What This Means for Investors

• Check before you sign. Ask the developer or selling agent in writing how the property will be classified, and confirm it with the council.
• Budget for compliance. Registration, licensing, fire safety and inspections are ongoing costs. Build them into your cash flow, not just the purchase price.
• Choose experienced management. A manager who understands individual agreements, rooming house standards and tenant selection protects both your income and your compliance.
• Talk to your lender early. Some banks treat rooming houses as commercial lending, with lower loan-to-value ratios and different serviceability. Others will not lend at all.
• Read rental guarantees carefully. A guarantee does not change the property’s regulatory status. See the 10% rental guarantee.
• Insurance. Standard landlord policies may not cover a rooming house. Disclose the use to your insurer.

Before you commit, read our Co-Living Investment Guide: 9 factors to consider, Why I wouldn’t invest in a co-living property and What to be mindful of before buying co-living.

Co-Living Locations We Research

Co-living in Melbourne · Co-living in Geelong · Co-living in Ballarat & Bendigo · Co-living in Brisbane & SEQ

Frequently Asked Questions

Is co-living the same as a rooming house?

Not always, but often. Co-living describes the product: private suites with shared areas. Whether it is legally a rooming, boarding or lodging house depends on the state rules and how many people rent rooms there. In Victoria, four or more residents renting rooms usually makes it a rooming house.

How many people make a rooming house in Victoria?

A rooming house in Victoria is a building where one or more rooms are available for occupancy by four or more people in return for rent. The operator must be licensed, the premises registered with council, and the Rooming House Standards met.

Do I need a licence to own a co-living property?

In Victoria, the operator of a rooming house needs a licence from the Business Licensing Authority. That may be you or a licensed operator or manager you appoint. Other states require registration of the premises or the proprietor rather than an operator licence. Get advice on your structure before you buy.

What is the minimum room size for a rooming house in Victoria?

The Residential Tenancies (Rooming House Standards) Regulations 2023 require each room to be at least 7.5 square metres, with a lockable door, power outlets, window coverings and heating, among other requirements.

Can I get a normal home loan for a co-living property?

Sometimes. Many lenders treat registered rooming houses as commercial property, which can mean a larger deposit and different serviceability rules. Speak to a broker who understands co-living before you sign a contract.

Who checks that a co-living property complies?

Usually the local council, plus the state regulator: Consumer Affairs Victoria and the Business Licensing Authority in Victoria, the Department of Housing in Queensland, NSW Fair Trading, and Consumer and Business Services in South Australia.

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Talk to Us Before You Buy

Co-living can deliver strong income, but only when the location, the design, the compliance and the numbers all stack up. Book a complimentary strategy session with Stephen Lazar at properT network and we will tell you honestly whether co-living suits your goals.

Or call 0413 108 125.

General information only. properT network does not provide personal financial, legal, tax or lending advice. Rules, rents and yields change and vary by property. Seek independent professional advice before making any decision.

Sources: Consumer Affairs Victoria; Victoria Legal Aid; Business Licensing Authority; Queensland Department of Housing and Residential Tenancies Authority; NSW Fair Trading and NSW Department of Planning; SA Consumer and Business Services; WA local government lodging house requirements (ABLIS). Last reviewed October 2026.