‘Scope for exploitation’: Investors eye rooming house conversions amid rental crisis

Abstract

Many property investors in [Melbourne] are asking questions about converting their existing properties to rooming houses. An explosion of interest in rooming houses from investors based on their higher rental yields has prompted concern from advocates about unregistered dwellings and vulnerable residents in this “housing of last resort”.

But with rooming houses a “housing of last resort” for renters, many of whom are living with entrenched vulnerability, the trend has advocates worried.

“We have seen first-hand that more people who are older and more vulnerable are moving into rooming houses,” said Amy Frew, director of client services at Tenants Victoria. “Due to the housing crisis there has been a lot more scope for exploitation.”