Hi guys,
We’re looking at purchasing a student accomodation property in Melbourne Vic (actually its a 3 bed unit that we’re converting to student accom), just wondering whether anyone has had experience, good/bad with this? Specifically:
1. Maintainence – How much is involved?
2. Insurance – Is there any issue getting insurance on these properties? And who have you used to insurance your student accom properties?
3. Vacancy rates – What sorts of figures have you had?
4. Tenanting properties – Are there times of year where its hard to get new tenants? (assume when uni is in wind down, new tenants would be scarce).Just some of the things that I’ve thought of, look forward to your replys.
Cheers
Dave.
Having done my figures I reckon that 5 bedrooms is the minimum number I would use for student accm.
Any less and it is not worth the extra work that goes into it, the longer vacancies, the extra bills I have and the furnishing.
Less than five and I would rather have a normal 12 month lease with one tenant responsible for water, electricity and gardening as well as bringing their own furniture and whitegoods.
I run one place and am looking for another.
Cheers,
Simon Macks
Residential and Commercial Finance 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.
Cheers, actually its a duplex style place with one residence having 2 beds and the other 3, which makes it 5 beds in total.
What rent would each side get on it’s own if you leased it to a normal tenant?
What rent will a room get if leased to a student fully furnished with all outgoings paid? Mine pay $100 – 120 depending on room size. My house is 400m from the uni so commands a premium.
Simon Macks
Residential and Commercial Finance 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.
The 3 bedder would probably get 200, and the 2 bedder probably 170, they are about 100m from the uni so very close. The rooms can command about 120 per week, so the total for 5 rooms is around 600 per week for students vs 370 for normal tenants.
Originally posted by d_robb21:The 3 bedder would probably get 200, and the 2 bedder probably 170, they are about 100m from the uni so very close. The rooms can command about 120 per week, so the total for 5 rooms is around 600 per week for students vs 370 for normal tenants.
Factor in the electricity and water bills. Include the additional effort to manage 5 leases and the vacancy for three months of the year.
Then compare your figures again.
Cheers,
Simon Macks
Residential and Commercial Finance 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.
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