Co-living works for some Perth properties. Most properties shouldn't bother.

Usually not. In most cases it is structured as a lodging arrangement where individuals rent rooms within a managed household rather than taking exclusive possession of the full property. Lodging arrangements operate in a grey area between residential tenancy law, contract law, health and safety law, and local government regulation.

Usually not, in our experience. After management fees, turnover, inclusions and the operational intensity, the net uplift on a typical 5-bedroom property is in the range of $150 per week or $8,000 per year. For most owners that figure is not enough to justify the additional stress, compliance load and active management required.

The model becomes meaningfully better at 6 or more rentable rooms because operating costs do not scale proportionally. Below the 6-room threshold, a well-managed standard lease often serves owners better. We will tell you this honestly at the assessment stage.

Operating costs do not scale proportionally with rooms. Management, cleaning, gardening, utilities, compliance and your own time are largely the same whether you run 5 rooms or 6.

Five rooms covers the operational overhead. The sixth and seventh rooms are what makes co-living genuinely worth doing. Each additional room is almost pure margin once the household is set up. This is why we are direct with owners whose properties cannot reach 6 rentable rooms even with conversion.

Properties with six or more rentable rooms, at least two bathrooms, a large functional kitchen and adequate parking. The highest yields come from custom purpose-built homes designed for 7 to 8 ensuite rooms from the outset, or established properties that can be converted to add bedrooms (theatres, formal lounges) or ensuites (laundries, oversized bathrooms). Smaller properties (two bedrooms, apartments or three-bedroom units) do not generate enough uplift to justify the complexity.

We recommend bundling weekly common-area cleaning, monthly gardening and a capped utilities allowance into the rent. Indicative Perth figures are around $150 per week for cleaning, $250 per month for gardening and a $500 per month utilities allowance, with usage above the allowance split between occupants. This adds roughly $60 to $70 per room per week to the room rent.

Trades are independent. You can use your own cleaner and gardener, or we can introduce you to providers we work with regularly. LPP coordinates scheduling and pays them from rent collected on your behalf. The contract for service sits between you and the trade, not with LPP.

It depends on your council and the number of occupants. Most Perth councils classify a property as a lodging house at 6 or more occupants, requiring planning approval. The City of Perth triggers at 5 or more. Contact your council proactively before increasing occupancy. This must be done by the owner directly.

Yes. This works well for empty nesters or FIFO workers renting out two or three rooms while retaining household control. Careful occupant selection and clear house rules from the outset are essential. The income maths is different from an investment property because you are not adding management on top of a mortgage, but the operational principles are the same.

A co-living assessment takes into account your layout, room mix, suburb, cash flow goals and management comfort level. We will give you an honest view of whether the strategy makes sense, including if we think a standard lease would serve you better. We turn down properties we do not think are suited for this strategy.

Based on our management experience, a 5 to 6 bedroom Perth property may generate gross room income in the range of $1,500 to $2,000 per week, compared to $700 to $900 per week as a standard whole-home rental. Custom-built all-ensuite properties of 7 to 8 rooms can generate $2,500 to $3,000 per week gross. After all costs, the net uplift is materially smaller.

For a 5-bed configuration the net figure typically runs around $8,000 per year. For a 6-bed configuration it typically runs around $22,000 per year. For a purpose-built 7-room all-ensuite it can reach $45,000 or more. This is the gap that explains the 6-room threshold and the premium of custom builds.

The terms are often used interchangeably. A rooming house or lodging house refers to a property regulated under local government planning and health legislation once it reaches a certain occupancy threshold. In Perth, properties with 6 or more occupants are generally classified as lodging houses by most councils and may require formal planning approval. Co-living is a broader term covering professionally managed room-by-room arrangements at any scale.

We currently offer co-living management across the northern corridor of Perth, from the CBD to Yanchep, west to the coast. Inner and middle suburbs with access to employment hubs, universities, hospitals and public transport tend to perform best. Areas close to Curtin University, QEII Medical Centre and major northern corridor rail links consistently attract working professionals and students. Proximity to FIFO transport hubs in the northern suburbs is also a strong demand driver.

Yes, in most cases furnishing is essential for strong performance. Furnished rooms command higher rents, attract better tenants and reduce vacancy between changeovers. A standard setup for a 6+ bedroom property typically costs $10,000 to $20,000. Each bedroom should include a bed, mattress, bedside table, desk, chair and storage. Shared areas need a couch, dining table and chairs, washing machine, dryer and basic kitchen supplies.

Co-living income is generally treated as rental income for tax purposes, and standard deductions apply including management fees, repairs, depreciation and loan interest. However, capital works, conversions and the higher income level can affect how depreciation is calculated and how the property is classified. We strongly recommend speaking with an accountant experienced in lodging or rooming house income before proceeding. We do not provide tax or financial advice.