Sandra is our multiple dwelling specialist and has been managing Rent by Room properties in Hamilton for over three years. RBR (Rent by Room) properties are restricted to 5 tenants or less and BH (Boarding house) properties are 6 tenants or more. Don't let yourself get confused by the two as they come with a different sets of rules. 

RBR - Up to 5 rooms in the property and each room holds its own tenancy agreement with 1 tenant only. they still come under the Residential Tenancies Act 1986 so must comply with tenancy law. 

Suggestions for RBR & BH - Most RBR & BH properties are configured in such a way that each bedroom has its own ensuite & a small kitchen bench/cupboards with microwave and mini fridge/freezer. This is not necessary, however it is much easier to rent this type of room and obviously they generate a higher rent than a room without these items. Also supplied in the room are a bed (usually double or queen, depending on room size), mattress protector, some form of heating (wall heater or panel heater), chair and student desk (if space allows). The "shared areas" are any area that all tenants have use of and these areas are cleaned fortnightly by a cleaner as well as lawns and gardens attended to at the owners expense. Shared areas can include: Lounge with furniture, Fully equipped Kitchen, Laundry with washer and dryer and obviously hallways and outside areas. Extra items needed would include: Vacuum cleaner, broom, mop and bucket, brush and shovel, This is so that the tenants can care for their rooms. Wifi and power are also supplied at the owners expense. All private rooms must be lockable and it is suggested that the main entry door have a digital key pad. With a digital key pad, most can be programmed (by the property manager) so each tenant has their own code and these can be deleted as needed. 

BH - 6 or more tenants in the property, BH's still come under the RTA (Residential Tenancies Act 1986) so must comply with tenancy law. The same as above would apply for chattels, etc.

BH's must also comply with council regulations. Before buying a property with the intent to use it as a boarding house, call the district planner for a site check. Often BH's need smoke stop doors, evacuation plans, larger shared areas with more equipment: Fridges, cooking facilities, cupboards, etc. 

BH tenancies and standard residential tenancies share many of the same requirements, but there are some differences. 

• A boarding house tenancy lasts (or is intended to last) for at least 28 days.

• The property must be lawful for residential use and have all necessary consents from the local authority to operate as a boarding house.

• All private rooms must be lockable and it is suggested that the main entry door have a digital key pad. With a digital key pad, most can be programmed (by the property manager) so each tenant has their own code and these can be deleted as needed. 

• Boarding house rules can be applied, although these rules must comply with the RTA.

• A boarding house tenant can end their tenancy with 48 hours’ notice. This notice does not have to be in writing.

• A boarding house landlord normally needs to give the tenant 28 days’ written notice. There are some exceptions to this.

  A boarding house landlord can end the tenancy immediately if the tenant has:

  • caused, or threatened to cause, serious damage to the boarding house

  • endangered, or threatened to endanger, people or property

  • caused, or threatened to cause, serious disruption to other tenants.

  The landlord can end the tenancy with 48 hours’ written notice if:

  • the tenant doesn’t pay overdue rent within 10 days of receiving written notice to do so

  • the tenant is using the boarding house for an illegal purpose

  • the rent is overdue and the landlord considers on reasonable grounds the tenant has abandoned the room (after inspecting the room and, if possible, making contact with the tenant’s contact person (if any) identified in the tenants tenancy agreement).