Perth · Sharehouse management
We are here to help catalyse your investment property – maximise income and near eliminate vacancy risk. By letting properties via individual room leases we will multiply your net rental return by 50–70% with enough experience to ensure full legal compliance and reduce hidden friction costs.
Modelled on a real property under management – a four bedroom house in Craigie – appraised for $750/wk on a single lease but let by us for over 2 years at 100% occupancy.
Net to you, per year
$58,750
After our 15% fee and running costs
Same house, single lease
$35,354
After a standard 9.35% agency fee
All four rooms let – +66% on the single-lease net.
The model
Letting the same property with Red Door as a multi-lease sharehouse spreads that income across multiple tenants, multiple agreements and multiple bonds. This not only increases your income but spreads risk and increases held security.
We will let each room under an individual residential tenancy agreement, fully compliant with the Residential Tenancies Act 1987 (WA), and with individual bonds centrally lodged with the Bonds Administration.
Our model and approach means, historically, we have filled rooms easily before vacation of a lease – meaning 0 impact on generated income to a property. However, even in a worst-case scenario – the risk of total vacancy which is ever present on a single lease model is almost completely designed out.
We charge a flat 15% management fee on rent received and we include in this the full cost of tenancy changeovers such as entry & exit reports, tenant onboarding etc. – we only invoice on rent actually received so an empty room costs us too. Rent is paid directly to your account and we will invoice monthly for our management fee plus any agreed maintenance costs.
Because single lease management is much simpler. We are multiplying the workload by the number of rooms – e.g. four agreements, four sets of room viewings, four condition reports, four sets of tenants to liaise with. For most agencies this model is simply more trouble than it is worth. However, we believe the numbers are too good to ignore and we have built our business and approach around streamlining this management style.
Every property we manage is required to stay within the occupancy limit that keeps it as a standard residential tenancy, as opposed to a registrable lodging house, under WA law. We will confirm this position for your property within the local planning scheme and insurance framework as part of our appraisal process.
Results
Both properties are currently under management – the Craigie property has run at full occupancy for 24 months, Orelia for 6.
Craigie
Fully let, 24 months continuous
Just letting three of the four rooms is sufficient to beat a third-party single lease appraisal. The fourth room is direct upside.
Orelia
Fully let, 6 months continuous
Again, just two of the three rooms let under this model equals the single lease appraisal. The final room is pure gain on the bottom line.
Who we are
We bought our first investment property together in 2024 – an older house on a large block. The type of investment that traditionally gradually appreciates on land value as opposed to generating significant cashflow.
The loan was substantial and our rate was high – we simply could not cover principal & interest payments without additional cash injection. Not the passive investment we had intended.
So we took a different approach and filled the rooms individually – turning what should have been an asset that generated gradual capital gain into a double agent that also provides a gross yield exceeding 12%.
Before long we realised that this approach is drastically underutilised in Australia and we could help both landlords and tenants by applying the approach in the wider property market, with many property owners having no idea this approach exists.
The name came from that front door. We think the world could do with more colour, and a front door is a reasonable place to start.
We've rented for years before managing ourselves. Both of us have moved to Perth and been through the process ourselves of finding somewhere to live, dealing with agents who have no passion or impetus – and witnessed first-hand simple repairs which take three weeks and four call-out fees to resolve as well as small problems left unattended long enough to become expensive ones. All these costs end up at the owner's feet; we built Red Door around not doing that – competent, motivated individuals who'll triage requests the day they arrive and jobs done once and done effectively.
Oli
Co-founder
A British geologist who moved to Perth and stayed. Qualified as an unrestricted real estate agent in Western Australia.
George
Co-founder
Also a geologist, also British, also here for good. Qualified as an unrestricted real estate agent in Western Australia.
What we handle
Whilst we can advise and assist with the spec, variety and budget of furniture best suited to your property and this model we have found it is best handled by the property owners. Fully, though basically, furnished properties are best suited to this approach.
Request an appraisal
We'll desktop assess both approaches – expected net income on an ordinary single lease versus our multi-lease room by room approach – and provide the comparison with assumptions shown. No cost or obligation – make an informed decision.
Or complete the full property questionnaire →
Just four minutes. Gives us everything we need to appraise your property properly.