Howdi,
Recently I was talking to a women who has 2 IP’s who recently put in wireless and portable (if she sells her IP) house alarm systems into both properties (a device can go in each room).
She pays for the alarm and the monitoring she adds onto the weekly rent and apparantly the renters love knowing that their belongings are secure (because they are Uni students). She can change the PIN number when they move out without having to change locks etc.It’s amazing by just talking to some people about property (especially at a child birthing class [
]) will give you ideas on how to improve your game.
I met an RE agent (if I told you where I met him, I’d have to shoot you [] [])who said this was starting to become very popular, because if renters move out, the vendor can change the pin number and then no squatters can move in etc. It was also more common in the newer townhouses.I met a NZ couple, who’d just sold their house in NZ, and they had some very interesting information to impart. One of them is a town planner and it was interesting to hear things from that perspective.
Anyway, getting back to that women with the 2 IP’s, the houses are close to a Uni, so she rents them out for $30 a night and she has 4 people staying in each premises.
Numbers
IP 1
4 x $30 = $120 (per night)
$120 x 7 = $840Same numbers for IP 2,
So total weekly rent is 2x $840 = $1680I’m sure you’re all thinking what I was thinking… “What if there are any vacancies”. She said she hasn’t had any yet.
What do you think?
By the way, I don’t sell security systems, but I was trying to get that lady to post about her IP’s. I’ve given her the web address. Hopefully she’ll make an appearance.
Cheers
Sooshie []When a problem is created the solution is created simultaneously
G’day Sooshie…
You another nightowl too?
My sentiments exactly re the Rent-a-Room. As you may have gathered in some of my posts I am a little cautious(Not Negative) of the current R/E boom…this is Year Six. The ladies idea has huge merit and is just what I am looking to do in Armidale/Wagga/Richmiond ..NSW. I am considering offering Free Accom to a Single Mum in exchange for general housekeeping.
She will have the option of making a few extra Dollars in offering meals . My plan is for a 4Br Ensuite for her..and rent the other 3 rooms for $100 night (3x$33). The Housekeeper will be my live in Property Manager.
I got the idea after looking at a guest house and figured I could do the same, but with Five-Ten properties.And I thought I had that idea to myself[
!]G’night from me…
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Hi. Not night owls like you but an early riser! I have two properties right near the uni on the gold coast. One has 4 bedrooms at $80/week each with just a lock on each door, TV connection in each room and the house is secure.
The other home I live in. I have a granny flat downstairs rented at $150/week at the moment and I also have a homestay student. The homestay stuedent lives with us and pays $170/week for room and board. This increased my groceries by only $40/week max and I hardly notice she is there as they rarely venture out of their rooms. You can actually have two homestays at a time and it is income exempt from Tax as you are providing a non-profit service. She is under rules re water consumption (due to drought) but by doing this I cover my mortgage of $1100 per week for this home which is a big relief for a single mum. Interestingly I have just begun to notice for rent signs popping up along the ‘uni streets’ just in the last fortnight.
Quality houses near unis are a great idea and I havnt had a problem with a student since I began – about 4 years ago. Good luck to you.
Bill,
With my student rental I have a mature student in the largest room at reduced rent. He is my house nazi. He collects the rent and keeps the place running. I also plan to have a cleaner come through weekly doing just the common areas.
I think your idea has merit but you are sacrificing the highest renting room in the house.
People are motivated by different things and you may well find someone mature who relishes the responsibility in exchange for a cheaper rent!
Give me a call if you want to chat about how the student market is here. I also would be keen to find out more about the Armidale market!
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I thought about this option when my IP was vacant for 2 months but didn’t think it’s feasible. How do you arrange landlords insurance? This day, liability is a big concern.
Regards
Huey
Hey guys, very interesting reading regarding the single room rental situation. I have been using this system in my house since its purchase. I purchased the property for $90k, lived for 12 mths and am currently residing in London. I have a mate in the main bedroom, 2 proffessionals in the spare rooms upstairs, 2 brothers who are students in the self contained room downstairs and they all pay $50/each a week. Do the math, not much in repayments, and since the purchase of the property it has doubled in value.
From abroad, one of my previous Landlords in London is doing exactly this. He has 53 properties across London. All fully furnished, Tv and Frig in each room. For the smaller rooms he has 2 people in them and the larger rooms he has 3-4 people in them. Each tenant pays a minimum of £70/wk! They convert the Lounge room to another bedroom to maximise profits. In my house there were 9 people living there.
Im sure they wouldnt agree with this in Australia and the council would be on your back in no time, however it is a brilliant idea and is working very well for him.Hi there,
Wow! I opened another can of worms!!! [
]
Having students live-in and pay rent is not uncommon. In fact, my sister does it and so do some of my friends. I’ve thought about renting out my 4th bedroom as well. Like Sunshine mentioned, it’s called Homestay.
Usually they are overseas students who come and stay and basically they do what the family does (i.e. if you go to a party, they come with etc). There are agencies that organize this sort of deal. There are conditions, whereby you are usually within 1 paypoint (with regards to public transport) of the Uni/Tech etc. You provide food etc. They pay for phone usage. Some agencies have a different set up (so Sunshine’s homestay customers might have different expectations).
Then there are the rent per night/week, which that lady I mentioned in the 1st post does.
Locks on the rooms are okay, but for the cheap cost of a fully monitered alarm system that you can get the tenant to pay for seems more slick to me. The lady said it was called “Watch 24” monitered alarm systems. I guess you should find your own in the area if you are looking for this security device. Sometimes these mod-cons add to the rentability of the place.
I think it’s a great idea to get a renter-come-PM to collect rent from you for a cheaper rental fee. Good thinking 99 []Cheers
Sooshie []When a problem is created the solution is created simultaneously
Hi everyone, I too have been looking at buying a property near a uni and renting rooms out. Wondering how you guys find the tennants. Do you advertise at the uni?
Hi Motivated,
Using the ‘Bulletin Board’ at the Uni/Tech. Also putting up flyer in resturants local to the area, or favourite eateries close to your property. The Local paper is also okay.
Some actually go as far to advertise in overseas uni’s for exchange students, so it depends on what type of tenant you are looking for.
I’d still be doing my tenant check list.Cheers
Sooshie []When a problem is created the solution is created simultaneously
Hi Everybody, One of my businesses in Japan and Korea is sending students to do homestays and we always have a shortage of good quality places to send students. As some people have mentioned having an overseas homestay student can be an excellent source of additional income. BUT please remember most of these homestay students want to be a member of the family and not seen as just additional income. Responsibility is a lot higher than just having a tenant. There can also be major language difficulties and cultural barriers. I check potential homestay families out very carefully and on average accept less than 15% of the people who are recommended to me. It is often said on this forum to make every situation a win win for everyone concerned and if you intend to have home stay students please remember this.
C2
“Is it true the more you owe the more you grow until the bank steps in?”
I work at the University of Ballarat and was just wondering, you say you charge these students on a nightly basis, do you charge these students all year? Is there a contract? 6 mths, 12 mths?
In Ballarat, most students come from other regional towns in Victoria, and always go home for the holidays which are 26 weeks of the year.
So, for half a year, they are not in Ballarat.
Do they still have to pay even if they are not there, like normal or do you have the same set up as the University and they only have to pay for when they are there in the semesters?
]) will give you ideas on how to improve your game.
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