Rentvesting Meets Co-Living: How Rooming Houses Offer Investors the Best of Both Worlds
The Shifting Landscape for Property Investors
As property prices in Australia continue to rise, many potential homeowners and investors are rethinking their strategies. Traditional property investing remains attractive, but new pathways are emerging for those wanting to maximise rental returns and minimise risk. Two of the most compelling trends in recent years are rentvesting and co-living.
At Jabel Property, Melbourne's leading Rooming House consultancy, we have seen firsthand how these trends are shaping the market. More importantly, we believe that combining them—using rooming houses as a rentvesting vehicle—offers investors a unique and powerful way to build wealth, generate cashflow, and create attainable housing solutions.
What is Rentvesting?
Rentvesting is a strategy where you rent where you want to live, but buy an investment property in a more affordable or higher-yield area. This approach is increasingly popular among younger Australians who want to enjoy a certain lifestyle (e.g. living in the inner city) without giving up their chance to invest in property.
For investors, rentvesting allows you to:
Break into the property market sooner
Buy in areas with strong rental demand and better yields
Retain lifestyle flexibility
What is Co-Living?
Co-living is a modern housing solution where unrelated adults share a home, each having a private bedroom and often private or shared bathrooms, with communal kitchen and living areas. It's an evolution of the 'share house' model, but with a focus on comfort, amenities, and community.
The co-living market is growing rapidly in Melbourne and across Australia, driven by:
Rising rental prices pushing tenants to seek affordable, flexible options
Younger generations valuing community and convenience
Increasing acceptance of shared living among professionals and migrants
For investors, co-living translates into rooming houses—purpose-built or converted properties that comply with local council and state regulations, allowing multiple unrelated tenants to rent individual bedrooms.
Why Rooming Houses are the Ideal Bridge
At Jabel Property, we specialise in rooming house investments because they combine the best aspects of rentvesting and co-living:
Cashflow Positive: Renting rooms individually generates significantly higher rental income vs a standard single tenancy. Many of our clients see gross yields of 8% or more.
Lower Vacancy Risk: If one tenant leaves, your property remains partially occupied, reducing income loss.
Growing Tenant Demand: More people are seeking affordable, private accommodation close to work, study, and amenities.
Entry Flexibility: You can buy in suburbs with high demand, even if you personally live elsewhere, aligning perfectly with rentvesting principles.
Melbourne’s Market: Strong Demand, Limited Supply
Melbourne's rental crisis is making headlines, with vacancy rates at record lows and competition for affordable rentals extremely high. Rooming houses and co-living arrangements directly address this challenge by providing well-located, affordable housing options for singles, students, and young professionals.
Despite this demand, many investors are unaware of the benefits and compliance requirements of establishing a rooming house. That is where working with a specialised team like Jabel Property becomes crucial.
What Investors Need to Succeed
While the rooming house model is highly attractive, it is essential to partner with experts who understand:
Local council regulations and rooming house registration requirements
Optimal property locations and layouts for maximum returns
Tenant management and community creation
Cashflow planning and ongoing compliance
At Jabel Property, we guide our investors through every step—from site selection and due diligence to licensing, fitout, and ongoing management. Our clients benefit from proven systems, deep market knowledge, and relationships with leading builders and property managers.
How to Get Started with Jabel Property
The intersection of rentvesting and co-living is one of the most exciting opportunities in Melbourne real estate right now. If you are an investor seeking strong cashflow, risk diversification, and a future-proof way to build your portfolio, we are here to help.
Ready to learn more? Contact Jabel Property today for a free consultation. Our team will help you assess your options, understand the compliance pathway, and capitalise on the co-living revolution in Melbourne. Whether you are new to property or an experienced investor, let us help you unlock the full potential of rooming house investments.