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How do I verify Class 1b certification before I commit to a co-living investment?

· Yannick Ieko

Answering: How do I verify Class 1b certification before I commit to a co-living investment in Australia?

Estimated reading time: 10 min read

You verify Class 1b by sighting the permits that record it and confirming them with the building surveyor who issued them, before any deposit moves. If an operator cannot show you which document confirms the classification, or tells you certification will be sorted after settlement, walk away from the yield model until they can.

A spreadsheet can show nine rents on any building. Only the approvals decide whether the building can lawfully house the nine people paying them.

The Harmony Group confirms Class 1b certification on every property before a client commits. This checklist is the test we would want you to run on anyone, including us.

Key Insights

  • Ask which document confirms the Class 1b classification, then confirm it with the issuing building surveyor.
  • Check the operator licence on CAV’s public register and the council registration of the premises.
  • For an operating Victorian property, ask for the minimum-standards records the operator has had to keep since 13 October 2026.
  • “Certification after settlement” is a walk-away line.
  • Rent shown for rooms the building is not approved to house is a paper yield.

Table of Contents

The documents to sight, and how to check each one

Class 1b is a classification a building surveyor approves under the National Construction Code (NCC), and its occupant and floor-area ceilings are set out, in the code’s own words, in our guide to what Class 1b certification actually requires. In Victoria, where The Harmony Group builds, a building surveyor approves the building through the building permit and, where the permit requires it, an occupancy permit, which “confirms your building surveyor is satisfied the building is suitable for occupation”.

Here is what to ask for, and what to do with each document.

Document What it tells you How to check it
Building permit The approved building work and the surveyor responsible Note the surveyor’s name and registration; ask them to confirm the classification approved and the NCC edition used
Occupancy permit (where the building permit requires one) The surveyor is satisfied the building is suitable for occupation Confirm with the surveyor that it covers the use being sold to you
Essential safety measures report and maintenance records The fire and life-safety systems are maintained For an operating property, ask for the current report; CAV says inspectors are likely to request it
Planning permit, or the basis for the exemption The land can be used and built on this way Check it against Clause 52.23’s conditions, or the permit’s own conditions
Council registration of the premises The property is registered as prescribed accommodation Ask for the registration and confirm it with the council’s environmental health team
Operator licence The operator is licensed by the Business Licensing Authority Search CAV’s public register of licensed operators
Minimum-standards records The property meets the rooming-house minimum standards For an operating property, ask to see the file and when each item was last checked

Two of these depend on the stage. For a property still to be built, you are looking at the permits and the plans the surveyor approved. For a property already operating, all seven apply.

The NCC is a national code, but each state adopts its editions on its own timetable, with its own transition arrangements, so ask the surveyor which edition the building was assessed under. The licensing, registration and planning rules in the table are Victoria’s. If you are being offered a property in another state, ask which regulator in that state licenses and registers shared accommodation, and run the same test against their rules.

Red flags that should stop the conversation

Each of these has a plain explanation, and none should be waved through:

  • “Certification is in progress” or “we sort that out after settlement.” Classification is approved before occupation. Money that moves first is exposed to whatever the surveyor finds.
  • More rents than the approval supports. The NCC’s Class 1b limit is not more than 12 people. Victoria’s planning exemption allows no more than 9 bedrooms. A rent model above either line needs a different classification or a planning permit, and the documents to match.
  • A paper yield on rooms that cannot lawfully be let. The Harmony team calls out a practice it describes as the three-room appraisal trick: room-by-room income presented on paper for a property that is not approved or registered to operate that way. Test any appraisal against the approvals, not the floor plan.
  • An existing house let room by room, with no surveyor approval for the new use. Let to four or more people, it is regulated as a rooming house in Victoria, and the building approval has to match that use.
  • Nobody can name the licensed operator. Operating a Victorian rooming house without a licence can mean up to two years’ jail or a fine of 240 penalty units, approximately $50,184, for an individual, CAV says.
  • Yield figures with no independent rental data behind them. Ask where the rent came from, who produced it, and when.

None of these means the people involved are dishonest. Each means the investment is not ready to be assessed.

Questions to ask any co-living operator before you proceed

Take these into every conversation, and ask for the answers in writing:

  1. Which document confirms the Class 1b classification, and can I see it before I commit?
  2. Who is the building surveyor, and may I contact them to confirm the classification?
  3. Does the property need a planning permit, or how does it meet Clause 52.23?
  4. Who will hold the rooming house operator licence, and is that person or company on CAV’s public register?
  5. Who will register the premises with council, and when?
  6. Who will keep the minimum-standards records, and can I see them?
  7. Where does the rent figure come from, and is there independent market data behind it?
  8. How are you paid, by whom, and does any party pay you more for steering me to a particular builder or property?
  9. If co-living is not suitable for me, will you tell me why?

An operator who answers all nine plainly has done the work. An operator who resists question 1 has told you what you need to know.

Why purpose-built changes the verification job

Verifying a building designed for Class 1b is a different job from verifying an existing house that has been adapted. With a purpose-built property, the classification is in the plans from the first drawing, so the documents exist before you are asked to commit. With an adapted house, you are often checking whether an approval for the new use was ever obtained.

That is a layered difference, not a verdict on every older building. Our comparisons of purpose-built co-living and HMO conversions and of purpose-built co-living and a rooming house set out the two paths.

For the licence, council registration and Class 1b approvals in turn, read our September guide to what a nine-bed owner needs. For what an operating property has to keep on file, read rooming-house operator duties and records since 13 October 2026.

How The Harmony Group answers the same checklist

We would rather you test us than trust us, so here is where our process sits against the questions above.

  • Classification. Every property has its Class 1b certification confirmed before a client commits.
  • The product. A high-end, purpose-built nine-bed on one title, single storey, with nine rooms and nine bathrooms.
  • The method. Every site is assessed through the 118-point method, and the team rejects about 85% of the opportunities it looks at.
  • The rent data. Each property comes with an SQM Research market report with verified rental data.
  • The fee. Clients pay $0. The builder pays the fee at settlement, at the same rate whichever panel builder is used, so there is no incentive to steer you.
  • The entry point. The minimum is $600,000 in cash, usable equity, or a combination of both.

The team brings 15+ years of specialist accommodation experience. We build in Melbourne. Our investors come from every state, and the process runs remotely.

Frequently asked questions about verifying Class 1b

Q: What document proves a building is Class 1b?

The building surveyor’s approvals: the building permit and, where the permit requires it, the occupancy permit, which confirms the surveyor is satisfied the building is suitable for occupation. Ask to see them, note the surveyor’s name, and ask the surveyor to confirm the classification approved. A brochure line or a builder’s statement is not the approval.

Q: Can I verify Class 1b before the property is built?

You can verify the approval path. Before construction, the building permit and the plans the surveyor assessed show what classification the building is being approved for. The occupancy permit comes at the end. Ask which document will confirm the classification at each stage and when you will see it.

Q: Is the check the same if the property is in another state?

The classification part is. The NCC is a national code, so Class 1b means the same thing everywhere, although each state adopts NCC editions on its own timetable. The licensing, registration and planning rules are state rules, so ask which regulator in that state licenses and registers shared accommodation, and check the property against those.

Q: How do I check whether a rooming house operator is licensed?

Consumer Affairs Victoria keeps an online public register of licensed rooming house operators. Search for the person or company named as the operator. If nobody can tell you who that will be, treat it as a red flag until they can.

Q: What should I do if the operator says certification will come after settlement?

Pause. Classification is approved by a building surveyor before occupation, and an operator who cannot show you the approval path now is asking you to carry that risk. Ask for the documents, or walk away from the offer until they exist.

Test the building, then decide

Every item on the checklist is a document that exists or does not. Asking for them costs little against a six-figure commitment, and the test works on any operator.

Before you put those questions to anyone, the free co-living education program gives you the groundwork: what a purpose-built nine-bed is, and how it is designed and run. Complete any nine modules and the program offers a booking for a one on one with a director. If co-living isn’t suitable for you, we’ll tell you why.

Citations

General information only. The Harmony Group provides general information about property and co-living investment, not personal financial, tax or legal advice, and does not hold an Australian Financial Services Licence (AFSL). It does not account for your objectives, financial situation or needs, so consider its appropriateness and seek advice from a licensed financial adviser, mortgage broker, accountant or the ATO before acting. Past performance is not a guide to future results and historical figures may not be repeated. The 2027 negative gearing reform was enacted on 26 June 2026 and applies from 1 July 2027. The definition of a new residential dwelling is still being settled after Treasury’s consultation, so whether a nine-bed is an eligible new build remains unsettled. Other tax or regulatory measures described are subject to change.