THE owner of a former illegal Yarraville rooming house has been granted a planning permit to operate legally despite opposition from neighbours.

Property owner George Athanassopoulos sought a permit from Maribyrnong Council to use the double-storey residence on the corner of Bayview Road and Grace Street as a boarding house with eight lodging rooms.

At a council meeting last week, council officers confirmed that the property had previously been operating illegally. Twenty objections to the permit application were submitted to the council.

Neighbouring residents complained about potential for antisocial behaviour by boarders as well as extra rubbish and noise. They said that approving the boarding house would set a precedent allowing similar proposals to go ahead.

Councillors voted 6-1 in favour of the application on the condition that a logbook detailing current boarders be kept and that lodgers should not be permitted parking permits.

Cr Martin Zakharov said rejecting the application would likely have led the case being appealed and approved at the Victorian Civil and Administrative Tribunal.

"We can impose a number of stringent conditions which make [regulation] of this property easier for council and police," he said.

"It's not a perfect answer, but what it gives council and residents is more say in control of this property because VCAT will approve it and these types of conditions will not be imposed."

Mr Athanassopoulos said he had lived in the area since 1973 and that if neighbours had a problem they could talk to him directly.

According to the council, there are 63 registered rooming houses in the city and 125 rooming houses are yet to be investigated. Under rooming house laws passed this year, operators must ensure their property meets 11 minimum safety standards, including having fire-safe locks on bedroom doors, lockable main entrances, and kitchen facilities.