Regardless of whether you decide to be an owner, operator or both, you need to ensure that one party holds a Rooming House Operators License to ensure you are compliant.

If you are an owner looking for passive investment and employ a licenced rooming house operator to operate your rooming house, you can verify that they hold a licence by checking the Public register - rooming house operators - Consumer Affairs Victoria.

Note: If you are considering employing a real estate agent to manage the property, don’t assume they are licenced, you still need to ensure they hold a rooming house operator licence. If they don’t, then discuss with them whether or not they are happy to obtain an operators licence. If not, you may need to obtain an operator licence and register the agent as a manager under your licence.

Purpose of the Scheme

The scheme was introduced under the Rooming House Operators Act 2016 to:

  • Protect vulnerable residents from exploitation or unsafe conditions.
  • Ensure operators are fit and proper persons to manage shared accommodation.
  • Improve transparency and accountability in the sector.
Who Needs a Licence?
  • Any person or entity operating a rooming house must hold a licence.
  • This applies regardless of whether they own the property or manage it on behalf of someone else.
  • Exemptions include registered housing associations and government agencies.
Licensing Requirements

To obtain a licence, applicants must:

  • Pass a ‘fit and proper person’ test, which considers criminal history, financial integrity, and past conduct.
  • Submit an application to Business Licensing Authority (BLA).
  • Pay the relevant application and annual renewal fees.
Compliance & Enforcement
  • Licensed operators must comply with the Residential Tenancies Act 1997, Public Health and Wellbeing Regulations, and minimum standards set by Consumer Affairs Victoria.
  • The Director of Consumer Affairs Victoria can investigate complaints and take enforcement action.
  • Operating without a licence can result in fines up to $37,000 or two years imprisonment.
Licence Duration & Renewal
  • Initial licence is valid for three years.
  • Operators must apply for renewal before expiry and continue to meet eligibility criteria.

More information can be found at consumer.vic.gov.au/rooming-house-operators-licensing-scheme.

The relevant legislation can be found at Rooming House Operators Act 2016

A comprehensive checklist designed to help you navigate legal, safety, and operational requirements with confidence in our Members section - Checklists.