I would be very interested to hear from people who have had any experience in renting an IP to uni students.
Briscon
Yes, loads of experience. We do this as part of our property management business. You can get information from my website or feel free to email me with anything specific. [biggrin]
Investment Property Management
http://www.adprop.com.auThanks I will check out your website
Briscon
Hi. I have place in Canberra where I rent the rooms separately. The rooms have beds in them, I have put a few sofas in the living area, a washing machine and fridge. I charge rent and also for the services such as electricity, gas and a phoneline. It has been reasonably successful. I chose students that are not in their first year, I was lucky I could chose this year. At the moment I have an empty room and I am not getting much of a response but I know in January it will get busy again. It also goes a bit crazy in June. One of the universities is opening a new student residence next year so I am not sure how that will affect the market so I will wait before buying another property for this market. The only problem I have is that when I first started it was making a positive return but the government put up the rates and land tax ; now I am on a very fine margin, so the empty room is giving me an negative return at the moment . The effort is greater than renting to a group or family through an agent but the return is 40-50% more.
all the best with your investments. Jamie2006Hi we are having some success with this rental option, we manage the property ourselves, we provide a cleaner plus utilities, locks on each bedroom door plus bar fridges in each room.
We now have a blend of students and fly in – fly out renters. It’s working well for us in Perth.
One thing which has made it easier though was in each rental we requested that the household nominate a single contact tenant who effectilvey acts as a the head of the house, I’m sure the tenants don’t term it that way, yet this arrangement works very well when one or two tenants leave and the contact tenant screens the new applicants in condsideration as to whom they would best get along with.
Working on more just this this. [hair2]
Hi,
I am new to PI and want to know few things as i want to start in PI when we rent out the property on as Student individual room basis isnt that a concern for the council dont we need permits etc [confused2]
You definately need to check with the council. In SA, you need to change land use to boarding house (from residential) for over 5 people residing in a property. Under 5 is OK, we keep all ours at 5 or less residents to comply with council legislation.
Investment Property Management
http://www.adprop.com.auI think that would be the case with all the states or something similar to that is there anyway we can find it out..[hmmm]
I know that in 2 suburbs in Melb. the rule is that over 9 constitutes a boarding house. I don’t actually know if this is a state rule or if each council has a different requirement..
Ringing up your local council would be the easiest way to find out, I think.
Happy new year [party]
ElkaHi guys;
HAPPY NEW YEAR TO ALL OF YOU!!!
I have been thinking about the same – accommodation for studnets. At this stage, I can not effort to get my own property, but I was thinking about renting unit under my name and use it as accomdation for students. Do you think, I would be in trouble, if my real estae finds out that acctually, I am acctually not livining in the unit just using the property as a rental place.
I am would appreciate your advices.
Thank you
DanikoThat depends on the wording in your contract. Go to the agents and ask for a copy of the contract to take home before you sign it. If unsure, consult with a professional (eg a lawyer).
And maybe the owner/REA does not care as long as the property stays in good condition.
That would be were your effort comes into it. Select good tenants, monitor the property regularly, fix up any damages as soon as you become aware of them.
If you do the right thing, it could be a win-win situation for all concerned.
I do not know what your rights are about receiving a bond when you are subletting. I would advise you to go out and check that out.
Hi Bridgebluff;
I appreciate your advices. I did some reasearch before, I was looking for unit, officially saying that I need accomodation for students. Unforatunatelly all landloards hearing word “studnets” they were fricking out, for them students meant “damages” and noise. I agree with you that if we keep the property clean and out of damages both sides will be happy.
Just thinking
cheersAnother thought. If you rented the place and had a room in it for yourself (even if you mainly live somewhere else) there should be no rule stopping you from subletting (subject to the contract). And once you can convince your landlord of what a good tenant you are, they may not mind if you move out of the room but still keep the rent going.
I’m looking at a property that I could potentially rent out to students on a room by room basis. Can anybody recommend a good property manager who has experience with renting out a property by rooms?
The area is Brisbane.
I have taken out leases on propertys to sub lease on a number of occasions to backpackers in st kilda, Some advise you may wish to take – Signed contracts, Taking a bond, holding ones passport as security(this eliminates runners), Less bedrooms the less hassle, 1 & 2 bedrooms were less hassle, 2 people per room, rent should include costs for electricity etc Telephone left to tenants, Flyers in internet cafes and backpackers ensured no empty beds, fully furnish with beds and basics from salvos or garage sales, short term min weekly accomodation,
Cheers
BrianRuroshin,
I think if you try to sublet and use a PM to do it you will be skating on waferthin ice.
My advise either do it yourself and keep complete control of the situation or leave your fingers away form it.
Gooc luck
Hello,
I have just settled on an 8 bedroom student accomodation investment property. The internet is paid by me and the electricicty is capped at $400 per quarter anything over and it is split between the students.
Each room has furniture bed ,table,etc .It has 2 self contained kitchens with all cutlery. The laundry has a washing machine and dryer. There are 2 bathrooms a large communal lounge and dinning room with lounge chairs tv, dvd,table and chairs supplied by me.
Each student is paying $110 per week per room. And the leases are 10 to 12 months long.
Hope this helps
Dom
[biggrin]Originally posted by bridgebuff:Ruroshin,
I think if you try to sublet and use a PM to do it you will be skating on waferthin ice.
My advise either do it yourself and keep complete control of the situation or leave your fingers away form it.
Gooc luck
thanks for the advice bridgebuff, can you elaborate why its bad use a PM in this situation other than it would cost a bit more?
I am pretty sure that the PM charges a fee of around $100 to put new tenants in the place. If you have 4-5 students turning over in 6-12 month period – it adds up.
Sean Mulligan
NE Sales Consultant
Otis Elevator Company Pty LtdMost PM’s will want a week’s rent to put someone into a property. This will add up if you have high turnover, however, managing the property yourself is going to take a fair it of your time.
I rent an IP to students most of the time as it is adjacent to a university, but as a ‘normal’ rental, not as a short term, by the room type. There’s nothing intrinsincally wrong with students. Like every ‘category’ of people, there are good one and bad ones. The PM’s in the area are used to dealing with students and have good ways of working out whether they can pay the rent, normally by either sighting Govt handouts or getting parents to sign either an income guarantee or the lease itself.
I’ve found some of the best to be the asian (singapore, HK, Malaysian) students here on full-fee paying degrees. They pay the rent and just quietly go about the business of getting their degrees. No parties, drugs, ‘undiscovered’ tenants. But there are always bad eggs in every batch of people. In fact, I’d have hated to have rented to either myself or anyone I went to university with! [blush2]
It might also pay to get chummy with anyone in the immediate vicinity of the property – perhaps a gratuity from time to time (movie tickets, bottle of wine?) – to keep an eye on things. They’ll soon let you know if there are problem tenants in the place. It doesn’t take long before a neighbourhood works out someone isn’t being a good neighbour.
I think the irony is that most universities are in districts that have become ‘desirable’ simply because they have a university in them – which drives up prices and excludes students from being able to afford anything. St Lucia in brisbane is a prime example, and I’m sure there are plenty of others. Still, that creates opportunities for people who want max yield from their place because there is pretty much unlimited demand for good quality by-the-room lets near universities.
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