Anyone have experience with multi leasing? My wife and i are thinking of multi leasing our home to uni students as an i.p. We live close to a university and our home is 4 bedrooms with two living areas (one could be converted to another b'room) and two bathrooms. So it's set up well to lease out to students. I figure we could get around a $100 a b'room. With the house been 6 months old we would also get high depreciation so i'd expect it to be positive cashflow. We currently have I.P unit with wife's sister which she is going to buy our half shortly leaving us approx $20k plus some equity in our current PPR to use to buy another PPR. Anyone think this is a good idea to kickstart our portfolio?
i multi lease to 5 people mostly unemployed in old house,not for the faint hearted and very time consuming.they always at home so elec and water very high,about $20 per week per person. iknow most other places can be cheaper. main item 2 address is insurance as most insurance companies dont insure house if rented 2 more than 3 people who are unrelated.if u find someone who does for a reasonable price let me know……. u can make money on it but if a newer house maybe the time u spend doing it is not worth it cause u would probably would make close on the same amount renting the house wholewithout the associated bills and dramas…plus high wear and tear renting to lots of people
Yep, I think it's a great idea. If you furnish it you may be able to get even more per room. In NZ, we are getting $120+ for a furnished room for students and/or transient types that stay a month or so. Make sure you have broadband in all the rooms and supply them with a big screen telly in the lounge room
Old furniture is fine, definitely don't give them your nice leather lounger to put their feet upon! I would also have a cleaner come in once a week, especially if you're renting to uni students (kids barely out of nappies, probably wouldn't know a vacuum cleaner or cleaning cloth if it hit them in the face!!)It's a great way to create good cashflow, providing you don't mind the extra management, i.e. keeping an eye on the place. Maybe keep charge of mowing the lawns so you have an excuse to go there every couple of weeks.
Vicky
hi, guys. I have a multileasing investment property as well. Do you know any insurer will do multileasing insurance? Thanks.
Hi AndrewD
Am I right in assuming that this is the home you currently live in? If so and you intend to do as you have suggested and claim depreciation etc I'm sure you will have Capital Gains tax implications if you decide to sell. Just check with your tax adviser to ensure you are not setting yourself up for an unexpected ATO surprise.
Hi Andrew,
My parents currently do what you're suggesting. They sorted out the "empty nest:" syndrome by renting our the spare 3 bedrooms to students/international travellers.
Initially mum went through an agent who sourced the students in return for just one week's rent. She started this about 5 years ago and back then the rate was $100 per room, or $110 if internet included.
You shoudl be providing in each room:
* bed, plus linen + towels
* desk
* small bookshelf or drawers
* internet access (most int'l students these days will be expecting high speed wireless internet avaialble with no data download limits)then ensure each room has its own designated pantry shelf and fridge space, and bathroom drawer. Make sure you are familiar with nearby public transport routes and also aware of parking restrictions on your street in case the lodgers do have a car.
Mum's rates are now between $130-200 per room, depending on size. Of course her bills went up but the extra rental income easily covers these.
She no longer uses an agent, has secured a few long-term tenants and they tend to replace themselves when they leave and there's even a waiting list to get in to her place! the few times she has needed to find a tenant she has used http://www.gumtree.com.au
I am currently living in a multi-lease type house, due to very low rent, and purchasing IP#2 in a couple months which I was considering making it to be multi-leased student accommodation. I know it has high costs and time requirements, but feel I can do it to create a +CF property in an otherwise -CF market.
Old furniture is fine, definitely don't give them your nice leather lounger to put their feet upon! I would also have a cleaner come in once a week, especially if you're renting to uni students (kids barely out of nappies, probably wouldn't know a vacuum cleaner or cleaning cloth if it hit them in the face!!)
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