Professionals Real Estate 
If you own an investment property, you will probably lease it to tenants so you can minimise the holding costs.
Because of this, one issue that may come up is the number of people who reside in the home.
What are the requirements for resident numbers in a rental property?
Let’s say you own a four-bedroom investment property. Generally speaking, it will be accepted that only one individual or couple occupies each room. So you are likely to have a maximum of eight adults.
The exception to this general understanding is children, who may sleep two or three to a room.
Based on this, here are some things to keep in mind:
You have a right to know who is living in the home
As a landlord/rental property owner, you should ask your tenants to sign an agreement confirming the number of residents and their names. If someone does move in without approval, you can refer to the contract and end the lease if you need to.
More isn’t necessarily better
If your investment property is big enough to be a share house, you may decide that leasing it to a number of young adult couples will be a good idea because you can earn more money per room. However, consider the wear and tear, which is likely to be higher if you have two people in each bedroom.
Be mindful of strata bylaws
If your investment property is in a strata building, there may be rules around maximum occupancy. Check these before you lease the property, or ask your property manager to do so.
Be clear about subletting
Some tenants may wish to take on the role of ‘head tenant’ and sublet the property to others in a share house-style arrangement. Subletting should not take place without your approval and there should be guidelines in place about how it is managed.
Think about bedrooms
Living spaces and offices should not be converted into bedrooms to allow a house to accommodate more residents, especially if this contradicts strata bylaws.
Define guest
It is fine for your tenant to have friends and family to stay for the night but some people blur the lines around who counts as a visitor/guest. Your rental agreement may need to be specific about the number of nights someone can spend in the property before their name is added to the lease.
Consider safety issues
Another thing to keep in mind is safety. If too many people are residing in a home, it can be an issue in the event of a fire.
Work with your property manager to keep an eye on resident numbers
It’s not possible to know exactly how many people are living in your rental property unless you visit regularly and this can cause a different set of issues.
If people are living in the home against the rules, they may take steps to avoid being ‘caught’ during property inspections. If there are concerns about too many tenants or other issues with the property, they can get in touch about the situation.
Working with an experienced and responsible property manager will help you make sure your rental property is not overcrowded. Your property manager will create a rental property contract, ensure it is signed and keep an eye on the property on your behalf.
Want the support of a reliable and experienced property manager? Contact your local Professionals office today.
