I’m new to real estate investment. Just checking out the marketplace. Is there any particular pitfalls with buying rental accommodation that are catered for students? Any issue with rental payment? Anyone has an idea what the vacancy rate would be for those type of accommodation?
Thanks.If the place is already renting to students, should be ok.
remember though if you are setting it up, there are a lot of traps depending on how you do it. Shared houses for instance have a whole booklet of extra rules and insurance can shoot through the roof.
Also students are short term, and may only need 9 months of the year, thats 3 months of vacancy.[toff]
lifexperience
Hi mc,
I remember that a few months ago there was an article on this type of investing in the Australian Property Investor magazine that covered all the pros and cons of student accom investing. Check out the back issues. I’m sure it was this year. Good luck.
Regards,
Gatsby!Thanks for the feedback : )
Hi MC,
As a student renter from overseas before, I have since settled in Perth to work. As far as rent is concern, it’s a matter of when we have the money is when the rent is paid. Sometimes, we need a breather too when our car etc breakdown and need that rainy day money. Basically, we want to have a relatively peaceful time too, without too much fuss from landlords.
As far as rent range is concern, we have rented in Bentley and surrounding suburbs… close to Curtin University. Rent range from $70-110 per room per week plus outgoings. At the $70 scale, it was just livable and not secure. At the top end, it was a brand new 2 year old units in a block of 6 with security gates etc.
There are two groups of student renters i guess, one is the stay put sort (incl holiday period during uni) and the other is the holidaying sort, that goes back home (oversea) or around Australia.
And LifeX rightly pointed out that student accomodations usually goes on for 9 months, but then having said that most students that goes back home for a holiday, are mostly not prepared to move all their belongings and would put up 1/2 rent to store their stuff during the holidays anyway, which I did.
As far as vacancy rate goes, it just depends on your policy… if you are a good landlord, words get around, there will be a queue to sign up with you. For example, we had a landlord that had students that were referred by us because of how she operated as a landlord. When we moved out, our friends moved in and she signed them up on a new lease. There was never a time that her properties were vacant.
This is all my experience so it might not be an accurate view of renting. [biggrin]
Hope this helps!
Vincent
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