Boarding house tenancy

A boarding house tenancy is a tenancy in a residential property occupied by six or more tenants under separate tenancy agreements, intended to last 28 days or more.

How the rules differ

Boarding house tenancies have their own part of the Residential Tenancies Act:

• Tenants have exclusive use of their room and shared use of common facilities
• Shorter notice periods apply in both directions
• House rules can be imposed, within limits
• Landlords have specific obligations around record-keeping, receipts and access
• Boarding houses had to comply with the Healthy Homes Standards from 1 July 2021

Why investors consider them

Higher gross yield per property than a standard single tenancy, because the rent is charged per room.

The realities

• Management intensity is far higher. Turnover, disputes, common area maintenance.
• Council requirements may apply — a boarding house can be a different activity under the district plan, potentially requiring resource consent, and may trigger different building code requirements around fire safety and egress
• Insurance is different and can be harder to obtain
• Lending can be more restrictive

Common misunderstanding

The six-tenant threshold is the legal trigger, and people back into it accidentally. Adding a fifth and sixth flatmate to a house can move you into a different regulatory regime without any deliberate decision.

Check zoning and building compliance before converting, not after.

Related terms

Last reviewed: 1 August 2026 · General information only, not legal advice.

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