The NSW government has introduced measures for six months to help boarding house residents and proprietors work together during the COVID-19 pandemic.
Termination notice periods for boarding house residents who are impacted by COVID-19 and are in fee arrears have been extended to:
60 days’ notice, if the proprietor has participated in a formal negotiation process in good faith with the resident but no agreement could be reached because the resident did not participate in the process in good faith, or six months’ notice.
This will allow time for proprietors and residents to negotiate possible fee reductions. More information for owners and managers can be found on the Fair Trading website Click Here
Boarding houses provide a diverse range of managed share accommodation with flexible terms for a fee. Boarding house residents are different from tenants as they do not have exclusive use of the premises or the right to occupy the whole of the premises.
See www.fairtrading.nsw.gov.au for more details.
Boarding Houses: Managed & Community Premises with non exclusive usage.
Boarding houses provide managed accommodation with non-exclusive occupation of a premise to boarders/lodgers/residents. The legal responsibility of the owners of boarding houses, is to provide accommodation and living services which ensure the welfare of the whole property meeting statutory requirements.
Residential Rental Properties: Individual self-managed, non community Premises with exclusive usage.
Residential rental properties are a type of accommodation where the tenants have exclusive control over a designated area. The legal responsibility of the owner is to provide an exclusive private space to a tenant and meet statutory requirements.
‘Boarding houses’ are as varied as the management and the specific area and community they cater for. Occupants enter a managed premise and are part of a community where individuals have no exclusive control over any specific area.
Although boarding houses supply less than 1% of the accommodation market, they meet the accommodation needs of a diverse groups of residents requiring low to moderate cost accommodation ranging from students, guest house residents, single’s and couples, lodgers who seek onsite management services, contract workers, those who want a community or those requiring flexibility, easy access, and convenience.
It is a unique form of shared accommodation, usually managed by an owner and his/her family. These micro suppliers provide a diverse range of flexible accommodation options to cater for niche demand that is not met by standardised mainstream supply. Despite low returns, the hands-on nature of the management and the unique history of each accommodation premise, owners work towards maintaining this style of low cost to moderate cost boarding houses.
Boarding houses are a form of rental accommodation where ‘ you don’t have the place all to yourself ’. All boarding houses have, to some extent non-exclusive use, ie shared facilities (for example, a shared kitchen, bathroom or bedroom). Many boarding houses also provide services, such as meals, cleaning or linen, which involve the proprietor or a caretaker being continually on the premises.
Read more on the Legal Answers NSW website.
Today boarding houses are financially precarious with:
Boarding houses are different to residential tenancies. They are NOT individual accommodations within a block of units. They are managed premises where residents reside within one property. Living is often shared, with communal facilities, with people expecting the owner/manager to resolve problems and ensure the harmony of the community within the boarding house. The accommodation is generally furnished with residents expecting assistance when needed. For example residents seek management to assist with changing a light bulb and such domestic needs. If there is a disagreement between residents, the Manager resolves it to keep peace and quiet.
Residents chose to reside in their boarding house of choice. They can enter with a nominal deposit on a low to moderate weekly tariff. They have furnishings provided and some services such as cleaning common facilities. They enjoy their independence, yet have the benefits of management and community. They come and go as they please, without a lease commitment.
Samples of types of ‘boarding houses:
Residential tenancies mean:
General Boarding houses mean:
When a new occupant enters a community, the onus is on the new occupant to live within that boarding house. The primary right is the community with the boarding house not the individual. For occupants who require exclusive residential accommodation, then the alternative is the residential tenancy market.
Licensed Residential Care (LRC) Facilities (rebadged as Assisted Boarding Houses in 2012) cater for “vulnerable persons with additional needs that require daily care assistance”.
These specialist facilities are akin to nursing homes and require ‘high levels of support and care’ services. They must meet rigorous compliance requirements as determined by NSW government.
Assisted Boarding Houses cater for a different market to General Boarding Houses, and the two should not be confused despite the misleading renaming of Licenced Residential care facilities in 2012.
Only a few LRC facilities/Assisted Boarding Houses have remained operational since 2012.
The impact of legislation on an already marginal accommodation business threatens the existence of boarding houses and it is detrimental to residents.
Since Boarding House reforms in 2012, there has been a 12.6%* reduction in the supply of affordable registered general boarding house supply. This loss is estimated at 1000 affordable occupancies in established areas of Sydney and NSW.
This loss in supply correlates with research by Associate Professor Drake in the 5 year Boarding House Evaluation Study that found “there was an overall significant difference between residents reported satisfaction with their standard of living (p<0.001). Of note, was a significant decline in satisfaction between 2015 and 2016. This decline was explored with residents through the semi-structured interviews in the 2017 data collection period. Residents attributed this decline in satisfaction to limited affordable housing options and increased occupancy fees -this was felt mostly in Sydney, and by those participants in receipt of Newstart allowance.” *
The (then) Minister of Fair Trading Reba Meagher in 2004 undertook serious investigation of the proposal to introduce legislation protection of boarders and lodgers in NSW. The Minister and The Lord Mayor of Sydney Clover Moore visited boarding and lodgings houses, spoke to boarders and lodgers and owners.
The Minister’s findings were:
Boarding house owners have a commitment to their accommodation business which provides a valuable alternative to residential tenancies with very little government subsidy. It is a vulnerable, low-yeilding area providing affordable accommodation services to lodgers and boarders. Where legislation is introduced which changes the unique nature of boarding houses, this impacts the affordability, quantity of supply and diversity of supply options, which then adversely impacts the “well-being” of residents.
If you would like further detailed information on the General Registered Boarding House Sector, refer to the POANSW submission* to the NSW Governments mandatory review of the Boarding House Act 2012. It is available at this link: Click Here
NGO ‘boarding houses’ provide for a small marginal group within the boarding house communities. These NGO boarding houses are given substantial financial benefits:
NGO operators are not suitable for boarders and lodgers who:
*Footnotes:
–In period 2013-2017: refer to Pg 26: The Property Owners’ Association of NSW: Statutory Review of the Boarding Houses Act 2012. Discussion Paper August 2019. Prepared by the Private Hotels Boarding House Sub Committee. October 2019. Available at this link. Click Here
-Pg 28: Evaluation of the Boarding Houses Act 2012 Final Report Associate Professor Gabrielle Drake. February 2018 ACU
Boarding House (BH) Sector Update: 1. Amendment to the ARHSEPP 2009 passed. The NSW government has just passed its second amendment to the Affordable Rental Housing State Environmental Planning Policy (ARHSEPP) 2009, pulling back planning concessions for ‘New Gen’ Boarding House developments. This change now sets a 12 room maximum to boarding houses in…