Rooming house builds · Melbourne and Victoria
Build a rooming house on your land.
Own land in a residential zone? A nine-bedroom rooming house earns a rent from every room. ZRE works with you from the first conversation to tenants in place.
The opportunity
Why build on land you already own
Land is usually the biggest cost in a property project. If you already own it, the build is the main new money, and a rooming house earns from every room. When one resident moves out, the others keep paying.
Our current build listings project gross yields of about 9% to 12% on land plus build. Greater Melbourne houses return about 4.5% (HtAG, September 2026).
No land yet? See our build listings or our finished rooming houses.
Will my land work?
- A residential zone where the rooming house planning exemption applies
- No heritage, flood or bushfire overlay that rules the design out
- Room for up to 300 m² of house, two car spaces and the garden area the zone requires
- Sewer, water and power nearby, and renters who want to live there
The nine-room example
Deer Park: nine rooms on one level
A finished rooming house built by one of the builders we work with. The figures are from the Deer Park listing, October 2026.
$1,750,000
listed price for the finished house, land included.
$175,500
a year in rent as listed, $3,375 a week across nine rooms.
10%
gross yield on the listed price, before costs.
Run the numbers on your own land
Your estimate
rent a week with every room let
- Rent a year at let
- Running costs a year
- Net income a year, before loan costs and tax
gross yield on land plus build
net yield on land plus build
gross yield on the build cost alone
The build-only yield treats your land as free, so compare on land plus build.
One empty room for a month costs about . The other rooms keep paying.
Have land? Discuss your build with ZREEstimates only, not financial advice. Excludes loan interest, depreciation and tax.
Assumptions. $420 a room a week, 95% of rooms let, 12% management, $250 a week in utilities and $12,000 a year in other costs. Excludes loan interest, land tax, depreciation and tax. Estimates only.
HAVE LAND? Discuss your rooming house build with ZRE. Mark will look at your block with you.
Floor plan and finish
How nine rooms fit on one level at Deer Park
Each room has its own ensuite. The shared living area and kitchen sit at the front, beside two car spaces.
9rooms, each with its own ensuite, robe and desk
22 to 29 m²a room, as marked on the plan
1level, with a shared living area and kitchen at the front
2car spaces off the driveway
The Deer Park plan, shown as a guide. A design for your land depends on your block, your council and your builder.
The finish at Deer Park
No land yet?
Land for sale
Sites with plans and permit for a rooming house, and house and land packages. Land price, build price and projected rent as published on each listing.
·Sites with plans and permit
·House and land packages
·Sold
·Average projected gross yield, sites with plans and permit
Site with plans and permitHouse and land packageUnder offerSold
Loading our rooming house build listings. If nothing shows up, see every build listing here.
Figures are as published on each listing and are projections, not guarantees. Gross yield is the annual rent divided by land plus build, before costs. Build prices are as listed in October 2026, and site works and service connections can add to them.
How ZRE works with you
Eight stages, from first enquiry to tenants in place
ZRE supports you from your first enquiry through to build completion and the move to leasing.
Stage 1 of 8
Initial consultation
We start with your land, your budget and what you want the property to do for you.
- Mark’s role
- Gives you a straight answer, including when a rooming house isn’t the right fit.
- You come away with
- A clear yes, no or maybe on the next step.
Stage 2 of 8
Site suitability assessment
Mark coordinates a review of the location, block size, access, services and the planning rules, including any overlays.
- Mark’s role
- Brings in the planner and surveyor your land needs.
- You come away with
- A view of what your land can hold and what could add cost.
Stage 3 of 8
Design and feasibility
We explore a layout for your site, then prepare indicative build costs, projected rent and running costs.
- Mark’s role
- Keeps the design within the 9 bedroom, 12 resident and 300 m² limits.
- You come away with
- A layout and the numbers to judge it by.
Stage 4 of 8
Specialist builder introduction
Mark connects you with builders who have built rooming houses before and helps you understand each proposal.
- Mark’s role
- Goes through every proposal with you, line by line.
- You come away with
- Quotes you can compare like with like.
Stage 5 of 8
Plans, approvals and contracts
Mark helps coordinate the professionals while the plans, approvals, specifications and building contract are finalised.
- Mark’s role
- Keeps the designer, engineers, surveyor and builder moving together.
- You come away with
- A building permit and a signed contract.
Stage 6 of 8
Construction and stage inspections
Mark monitors progress and appoints an independent inspector at each stage: slab or base, frame, lock-up, fixing and practical completion.
- Mark’s role
- Follows up anything the inspector finds.
- You come away with
- A report at each stage before the next progress payment.
Stage 7 of 8
Completion and handover
Mark helps coordinate the final inspections, identify defects and follow up outstanding items before handover.
- Mark’s role
- Chases the defects list until it is done.
- You come away with
- The keys and an occupancy permit.
Stage 8 of 8
Leasing preparation and tenant placement
Mark hands over to a specialist rooming house leasing agent, who prepares the property, manages enquiries and places tenants once the licence and registration are in place.
- Mark’s role
- Checks the operating arrangements are in place.
- You come away with
- A house that is ready to earn.
ZRE supports you from your first enquiry through to build completion and the move to leasing.
Why ZRE
Mark is hands-on from the first call
Rooming houses are a core part of what we do, from finished houses to sites and builds. Mark introduces you to rooming house builders across Melbourne and regional Victoria who have done this before, reads every proposal with you, appoints the independent inspector and stays involved until your tenants move in.
Deer Park, above, was built by one of them. The building contract is between you and your builder.
The rules
The rules for building a rooming house in Victoria
Planning
No planning permit in most residential zones for up to 9 bedrooms, 12 residents and 300 m², with a shared entry, kitchen and living area (Clause 52.23). Overlays can still trigger one.
Building
A Class 1b building under the National Construction Code. You need a building permit before work starts and an occupancy permit before anyone moves in.
Licence and registration
The operator needs a licence from the Business Licensing Authority, and the house is registered with council. Operating without a licence can cost more than $50,000 in fines.
A summary, not legal advice. Check with Consumer Affairs Victoria and your council.
How much does it cost to build a rooming house in Victoria?
Our nine-bedroom listings show build prices of about $950,000 to $995,000 on top of the land (October 2026). Smaller five-bedroom builds have been listed from about $630,000. Site costs and service connections can add to that.
Can I build a rooming house on my land?
In most residential zones, yes, often without a planning permit, if the house stays within 9 bedrooms, 12 residents and 300 m². Overlays can still trigger a permit. Mark can check your block.
What rent can a nine-bedroom rooming house earn?
Deer Park, a finished nine-room house, is listed at $175,500 a year, or $3,375 a week across the nine rooms, before costs. Ensuite rooms on our listings rent for about $300 to $435 a week.
Does ZRE build the house?
We introduce you to builders who have built rooming houses before. Mark stays involved from design to leasing, including an independent inspection at each construction stage.
Can I finance a rooming house build?
Usually, through a lender that understands rooming houses. Expect a bigger deposit and a higher rate than a standard home loan. Mark can introduce a broker.
I don’t own land yet. Can ZRE still help?
Yes. Our build listings pair a site with a build price, and our rooming house page shows finished houses.
Have land? Discuss your rooming house build with ZRE.
Tell Mark where your block is and he will give you a straight answer on whether it fits.
Talk to Mark
Have land? Talk to Mark about your build
Leave your details and Mark will call you back. Tell him where your land is and what you want it to earn, and he will tell you straight whether a rooming house build fits.
Mark Zammit
Zammit Real Estate, Fitzroy
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General information only, not financial, legal or building advice. Prices and rents are from ZRE listings, October 2026, including the Deer Park listing. Yields and running costs are estimates, and actual results will differ. The Deer Park floor plan and photos show one finished house. A design for your land depends on your block, your council and your builder. Melbourne yield: HtAG Analytics, September 2026.
