I am a 1st year uni student, wishing to sublet properties close to uni without living in it myself, with the aim of making a small profit each week through a difference in excess rents received, and the rent i have to pay to the landlord myself.
does anyone have any advice as to how i could go about doing it? such as advertising for share accommodation or how to try to get people to pre-apply before i rent a place etc.
Cheers
Put signs up at Uni – talk to the accomodation people, the students help office (or whatever it’s called) etc. etc.
Might be wise to secure a place first, and then advertise for students – as long as the demand is there, and it’s a good place etc.
Do a search for previous posts, there’s a few people on here who do the same sort of thing.
Cheers
Melthanks for the reply mel. i’ve actually got 2 students lined up after placing adverts in uni yesterday, but i’m a bit stuck as to what to do at the moment. i’ve talked to a few real-estate agents, and they don’t seem to like the idea.
sigh
Hi Calypso,
Be aware that the name on the lease (yours) is liable for any debts and expenses incurred – as such there are some ‘legal’ type issues that will need to be addressed in order that your interests are also protected.
The presence of the third party (you) is the reason behind the agents being a little reluctant to enter into such an arrangement on behalf of the landlord.
A question – why would a student pay a higher rent than the market rate if they sub-let from you?
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Well if there is a shortage of rental properties you may be able to ‘corner’ the market.
However what actual value are you adding?
You’re simply leeching in the middle.
Cheers,
Aceyducey
Actually, i was wondering whether i could make the sub-tenant sign on the same standard lease agreement as i would sign with the actual land lord, in that way, my risk can be somewhat mitigated by being able to claim damages from the sub-tennants, the damages the land lord would be able to claim from me.
I would’ve thought the agents and owners would be fine with the idea, as the owner can still claim damages from me.
actually, i am not leeching off them. i would be proving the service of finding uni students who all want to have share accommodation close to uni.
this service would especially appeal to international students who do not know the area well etc. in the 2 days since i’ve placed the adverts, i’ve received 5 calls from people all interested, and they were all international students. i’m sure the idea would have worked, but there are just problems which crop up.
it’s been unfortunate to turn respondents away. makes me feel bad, so i’ve recommended that they try the uni share accommodation service instead
Calypso, I would have thought that you would need to assume the entire lease, and what you would offer the students is a lease with you. I wouldn’t really be interested to sign up with you and be on the lease with the agency….
why don’t you find a property to start with, and move into it. Then rent out the other rooms while you are living there. At least that way you may have subsidised rent for yourself, and you will know how it all will work before you embark on a large scale process….
Cheers
MelDerek,
International students might pay a higher rate pof rent because they just arrive in Australia and have no clue as to the rental market. They’re often vulnerable to private landlords ripping them off. I see it every day in the work that I do. It affects their studies, and they often have to appeal subjects or fail because their accommodation has been so unstable. They’ll probably be open to anyone who demonstrates a “helping hand” to them when they come to Australia.
calypso, I think what you’re attempting to do is probably illegal, and if it’s not illegal, I think it’s wrong.
kay henry
AS the owner of the property I’d be against it. I let a place to you based on your representations then you go and let to someone else who I may never have wanted as a tenant.
I’d be very surprised if an agent would deal with you knowing your intentions.
The thing is, it’s not a misrepresentation, because in order to do this legally, permission must be sought from the land lord to sublet. yes i have talked to several real estate agents, and they do not like the idea, however, there was an agent i talked to, and she mentioned that she knew people doing the same thing in the area. That was an interesting insight. So i suppose it is possible, and not outside the realm of possibilities, however there are a lot of minor problems to overcome
The Real Estate Institute of Victoria deems it is illegal to collect rent for or sublet a property without a real estate agents licence for any other person. You might want to check NSW laws.
Share housing also requires that you have to individually meter gas/electricity for each student (Good luck!) or pay the bills yourself (international students will just run expensive fan heaters all day $$$$). Check NSW laws for Boarding House Arrangements.
Allow vacancies through those long uni summer holidays too.
oh… and check building insurance while disclosing that it is a shared house, this could be RE Agents concern. Imagine if you were liable in the event of a house fire.
[confused]lifexperience
Hi LifeX!
Do you know where the REIV gets that piece of info? Is it in the Residential Tenancies Act? I am asking as I am guessing that it can be side stepped if you’ve read the exact wording of it…
Cheers,
GregThe wording “any other person” is opened up to sidestepping in the case of a company/trust/partnership you own is collecting rents for you. But a straight cut sub-let, when you do not live in the house yourself, seems to me to be in clear breach.
It comes from Real Estate Act….I will hunt up the exact clause and wording. And see if anyone can come up with legalese that could circumvent it.[cowboy2]
lifexperience
OK..From the Real Estate Agents Act 1980. definitions Part 1. Introduction, Act no.9428/1980,
s.4.“estate agent” or “agent” means any person (whether or not he carries on any other business) who exercises or carries on or advertises or notifies or states that he exercises or carries on or that he is willing to exercise or carry on or in any way holds himself out to the public as ready to undertake the business of—
(a) selling buying exchanging letting or taking on lease of or otherwise dealing with or disposing of;
(b) negotiating for the sale purchase exchange letting or taking on lease of or any other dealing with or disposition of;
(c) collecting rents for—
* * * * *
any real estate or business on behalf of any other person;“letting” includes every form of leasing or letting of or granting a licence to use real estate and the function or business of “letting” includes the collection or receipt of rents by an agent on behalf of his principal whether the agent has or has not let the real estate in question;PART III—LICENCES
12. Estate agents to be licensed
S. 12(1) amended by No. 86/1994 s. 6(1).
(1) Subject to this Act an individual shall not either by himself or as a member of a partnership—
(a) exercise or carry on or advertise notify or state that he exercises or carries on or is willing to exercise or carry on the business of an estate agent; or
s. 12
(b) act as an estate agent; or
(c) in any way hold himself out to the public as ready to undertake for payment or other remuneration (whether monetary or otherwise) any of the functions of an estate agent—
unless he is a licensed estate agent.
Penalty: 500 penalty units or imprisonment for 12 months.
S. 12(2) amended by No. 86/1994 s. 6(2).
(2) Subject to this Act a corporation shall not—
(a) exercise or carry on or advertise notify or state that it exercises or carries on or is willing to exercise or carry on the business of an estate agent; or
(b) act as an estate agent; or
(c) in any way hold itself out to the public as ready to undertake for payment or other remuneration (whether monetary or otherwise) any of the functions of an estate agent—
unless it is a licensed estate agent.
Penalty: 1000 penalty units.Download document and check it out guys, see if you can interpret it to allow subletting without licence.
http://www.dms.dpc.vic.gov.au/Domino/Web_Notes/LDMS/PubLawToday.nsf/a12f6f60fbd56800ca256de500201e54/8d9723cd028e2b9cca256e7d00260931?OpenDocumentlifexperience
Hi LifeX!
What a speedy reply and it has left me totally confused… I hate legal mumbo jumbo…
I can only suggest that a chat with a half decent solicitor and you would find some way around all this… I personally have no ideas – but you can clearly let out properties that you own – so there must be some latitude in there somewhere… maybe if you sign a JV with the owner you could argue you have an interest in the property and you are not in a partnership…
As mentioned already people are doing this so there must be a way… If anyone knows what it is or can add anything constructive please let us all know
Cheers,
Greg
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