The application is seeking permission to convert the upper floors of a former office in Fowler Street.
According to documents submitted to South Tyneside Council in December, the site was previously used as shop store rooms, but was converted to offices about 2005.
Tenants will be able to access the accommodation from Fowler Street and use a shared bin store behind, in Back Fowler Street.
The plans were accepted by the council just weeks after town hall chiefs agreed to launch an investigation into houses in multiple occupation (HMO) as part of a drive to improve housing standards and tenant safety.
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Last year, councillors were told that despite the number of private HMOs in the borough being relatively low, they could still have a large impact due to issues with quality and management.
While council planners cannot enforce a blanket ban on HMOs, permitted development rights can be withdrawn in certain areas to limit numbers.
The planned HMO commission plans to map HMO locations in the borough and provide more information on tenants and the private sector companies linked to them.
This will later be used for planned new policies to combat homelessness and other housing issues in South Tyneside.
The council will accept comments on the Fowler Street plans until March 22.
James Harrison
James Harrison , Local Democracy Reporting Service