Rooming houses offer the ability to lease each lettable space separately. In doing this, high yields are achievable; in some cases, 10% or better may be seen.

Although each habitable space is self-contained, under rooming house legislation, there is a requirement for a common area that includes one shared laundry, kitchen, and living area. This is what allows higher returns to be achieved. The individual rules regarding rooming houses do vary from Council to Council. Generally, the rental income from this type of dwelling is far higher than letting a single house be in the same location.

Advantages of Rooming Houses:

• Up to five separate rents for the one dwelling/block of land. 
• With a low-density residential block, this is usually the highest and best use of the land.
• Each of the rooms is completely independent and lockable.
• There is risk mitigation by having separate leases; if one person moves out, there are still up to four rents coming in until a suitable replacement tenant is found.
• There is only one set of rates payable on the property.
• It provides affordable housing in locations where this type of accommodation may otherwise be unavailable.
• There is high depreciation due to fixtures, fittings, furniture, etc.
• There are no Body Corporate fees. 
• They will often provide the investor with positive cash flow and a high rental yield.
• In many instances, these properties are code assessable, meaning they don't require specialized development approval.
• When the tenant signs the lease, they agree to the house rules. If they break the house rules, then they are breaking the agreement. There are both prescribed rules (apply to all rooming accommodations in QLD) and rules made specifically by the property manager; this makes the tenants aware of the behavior standards of the property and gives greater control over leases.