What class of building?

Under the National Construction Code, there are two different classes of buildings that can be used as rooming houses – Class 1B and Class 3 (a standard residential house is Class 1A).

The distinction between Class 1B and Class 3 rooming houses in Victoria is more than just bureaucratic—it affects everything from design and compliance to cost and investment strategy. Here's a clear breakdown:

Class 1B Rooming House

Definition: A small-scale rooming house designed for up to 12 residents with a total external floor area under 300m².

Key Features:

• Typically single or double-storey and not located above or below another dwelling or other class of building i.e. shop (except a private garage)
• Often purpose-built or converted homes with ensuite rooms and shared common areas
• Simplified compliance: Can often skip planning permits and go straight to building permits
• Lower fire safety and accessibility requirements compared to Class 3
• Ideal for suburban settings and individual investors

Use Case: Best suited for affordable housing with high rental yield and manageable compliance costs.

Class 3 Rooming House

Definition: A larger-scale residential building for either more than 12 occupants or with a floor area exceeding 300m²

Key Features:

• Includes hostels, guest houses, backpacker lodgings, and large rooming houses
• Stricter commercial building code compliance, especially around fire safety, disability access, and structural standards
• Requires planning permits, building permits, and occupancy permits
• Often multi-storey or located in mixed-use buildings
• Higher construction and operational costs

Use Case: Suitable for commercial-scale operations or institutional housing providers.

Summary Comparison:

If you're considering an investment, Class 1B offers a more accessible entry point with strong returns and manageable compliance. Class 3, while more complex, opens doors to higher-density housing and commercial opportunities.