How much can a co-living property earn?
The income side of a Melbourne co-living development — room rents, occupancy and how the gross yield is calculated.
Nine rooms at $450 a week.
A 9-room development with rooms leased at $450 a week, at 95% occupancy, produces an effective annual income of around $200,000 before expenses.
*On a $1.6m total development cost. Illustrative only. Not financial advice.
How the income is calculated
Gross annual rent is the number of rooms multiplied by the rent per room multiplied by 52 weeks. Effective income applies an occupancy assumption — because no property is leased 100% of the time, every week, across every room. Net income then deducts operating expenses: management, maintenance, rates, utilities and insurance.
The gross yield is gross annual rent divided by total development cost. The net yield is net income divided by total development cost. Both are sensitive to the two inputs that matter most: rent per room and land cost.
What moves the income
- Rent per room — driven by suburb, suite quality and configuration; the single biggest lever
- Room count — more rooms means more income, within site and planning limits
- Occupancy — well-located, well-designed co-living commonly runs 90%+
- Expenses — management and maintenance are the largest ongoing costs
Room rents vary by location.
Indicative room rents in key Melbourne co-living suburbs. Actual rents depend on suite quality and configuration.
| Suburb | Indicative room rent | Vacancy | Suitability |
|---|---|---|---|
| Clayton | $400–$480/wk | 0.8% | 9.1 |
| Footscray | $380–$460/wk | 0.9% | 8.6 |
| Sunshine | $340–$420/wk | 1.0% | 8.8 |
| Dandenong | $330–$410/wk | 1.1% | 8.7 |
| Werribee | $320–$380/wk | 1.2% | 8.5 |
Income FAQs.
How much rent can I get per room?
Indicative room rents in Melbourne co-living commonly range from around $320 a week in affordable growth corridors to $480+ in high-demand inner and precinct suburbs. Rent depends on suburb, suite quality, configuration and the level of shared amenity.
What occupancy should I assume?
Well-located, well-designed co-living commonly runs 90%+ occupancy. A 95% assumption is a common planning figure, but actual occupancy depends on location, management quality and market conditions.
What is the difference between gross and net yield?
Gross yield is gross annual rent divided by total development cost. Net yield deducts operating expenses — management, maintenance, rates, utilities and insurance — before dividing by total development cost. Net yield is materially lower than gross yield.
Model your income.
Adjust rooms, rent and occupancy in the calculator to estimate income and yield for your scenario.
Open the calculator →