Whilst the obvious answer to avoiding a share house is “don’t accept an application that has multiple tenants”, it isn’t quite as simple as this.
The important thing to think of is “what will happen after the tenants move in”.
Let’s say you rent out your 5 bedroom house to a lovely couple in their early twenties. Excellent, only the 2 of them means less wear and tear. But you need to think for a moment – what are they going to do with the other 4 bedrooms? Maybe an office and a guest’s bedroom, but what about the other 2? It’s pretty obvious in this case that they are almost certain to get some people to move in and share the rent with them.
The best way to minimise the risk of becoming a share house, is to only rent the property to someone who is going to fill it up. An extended family would be perfect. Mum, Dad, 2 kids and a Grandma that lives with them.
But here lies another problem. You then need to price the property to suit a family. The difference between $700 and $750 per week to a family is $50 straight out of their weekly budget. But if you looked at the same house with 2 couples and 3 singles or 7 in total, Increasing the rent from $700 to $800 means $14.30 each (per week).
This proves that a $50 per week increase to a family, is more than 3 times the impact than $100 per week to a share house is.