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Boarding Houses

Important Information for New Boarding Houses Owners


"Are you aware of the new laws regarding the approval of new boarding houses moving forward under SEPP 21?"


The NSW Government has made major changes to the legislation regarding the DA approvals of new boarding houses as stipulated in Division 2 Section 26 in SEPP21

To put it in simple terms, all new boarding houses are classified as affordable housing in perpetuity. Under this classification, all new boarding houses WILL HAVE TO BE managed by a community housing provider (CHP) as stated in the relevant legislation.

As a CHP provider, Cubic Housing has the capacity to manage your prized asset for you. We also encourage boarding houses owners that falls outside of this legislation to speak to us as we can provide the most specialised services to you.

Please give us a call today for a FREE consultation.

Under the NEW Housing SEPP 21, boarding houses:

  • must be used for affordable housing in perpetuity

  • must be managed by a registered community housing provider in perpetuity

  • attract a 25% floor space ratio bonus (on land where residential flat buildings are permitted with consent)

  • must meet minimum standards for communal living areas, communal open space, and landscaping

  • must demonstrate compatibility with the character of the local area or the desired future character for areas under transition.

  • Management of Boarding Houses- Boarding houses must provide affordable housing in perpetuity and must be managed by registered community housing providers (CHPs). Registered CHPs must apply the NSW Affordable Housing Ministerial Guideline


Cubic Real Estate have assisted a lot of private clients over the years as an asset manager in managing their boarding houses investment. Moving forward, the NSW Government is requiring all new boarding houses to be managed by a Community Housing Provider (CHP). Cubic Real Estate is proud to announce that we have acquired this CHP license and can carry on managing Boarding Houses moving forward.

For more information on our CHP division, please visit our website at:

Managing boarding houses is a specialised field, we would say just slightly more complex than long term residential tenancies. It entails understanding the Boarding Houses Act 2012 (NSW) as well as helping our clients manage the boarding houses in a way that enables them to receive a land tax exemption under Land Tax Management Act 1956. Registered boarding houses may be exempt from land tax if they are able to meet the requirements set out by Revenues NSW. It also entails managing the daily operation of the boarding house from cleaning, to maintenance as well as procuring a mixture of long and short term boarders. Please contact our office to discuss this type of asset management.

Where land is used primarily as a boarding house, an exemption from land tax or a reduction in the taxable land value of the land is available if the land is primarily used to provide boarding house accommodation in accordance with guidelines approved by the Treasurer. Room Tariff restrictions applies please speak to our consultants to find out the maximum tariff rates. 

Room with Bunk Bed
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