Hi everyone,
Just wandering if anyone out there has sub let a rental property and if so how did it go?
Did you furniture the property?
Until I have paid of my debt and cleared my credit rating, I want to try and get some cash behind me and I am prepared to take a risk,
I was planning to sub let a rental property with landlords permission of coarse.
I was going to furniture it eg 3 bedroom with a single bed, desk, also a lounge suite, table and chairs, fridge,washingmaching,
I was going to have the sub tenants buy there own sheets,doona, cutlery,china, toiletry’s, towels
The only thing I am having trouble working out is that I would like to have the sub tenants pay into an account but if I have 3 tenants how will I
know who has paid and who has not?
advise please???????
Come on
someone must have advise??
When they do the direct deposits either have 3 different bank accounts (a pain) or instruct them to put their name on the transfer so you can identify the payment (spin some story that you have several payments of that amount going into your account and you run the risk of crediting the wrong tenant).
Thanks Scott No Mates
Do you mean they put there name in the area that says reference or description?
Yes, otherwise you have no idea who put the money into your account.
big risk. if they damage the property you will be responsible. If you understand this, then good idea.
I know of people doing it in the inner city and making $200 approx per week per unit.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I have done that when I was a student 10 years ago.
Hi thanks for your comments,
Yes I realize a big risk if they do damage, however every sub-tenant will be putting a bond (4 weeks rent ) before they even go into the property.
Here is my plan:
Each sub- tenant will be putting 4 weeks rent as a bond ( which will be returned to them after vacating if no damage has occurred)
Each subby will be paying 2 weeks in advance into an nominated account
Each subby will have to sign a lease with me and make a note of damages eg: just if you were going to rent yourself you look at the
property in detail and make a note of any damages before you enter the property.
On the lease it will have that each subby will agree to provided there own linen,cutlery,china, toiletries, and pillow
On the lease it will say that included in the price is gas,water and sec.
I plan to provided single bed in each room, a desk in each room, a lounge suite, table and chairs,fridge, toaster, kettle, washing machine
some pots and pans. I will also have in the lease that if they become behind in the rent by 2 weeks they will lose there bond and be
vacated from the property. (bond will pay for the 2 weeks they have come behind and advertising for a new tenant).
I will also be looking at the property closely.
So there it is What do you think????
god_of_money
Did you sub-let to get other students to help pay for your rent or did you own a property and let it out?
Terryw
yes I know its a risk but I can either sit here and do nothing or get of my ??? and start doing something to try and get ahead in life.
What did the people you know do? did they rent out there house to students? how did they find it? did it work ok?
regards
Got to be careful of including utilities, especially when your not living in the building. Its amazing how many fan heaters, plasmas, computers, stereos, etc can be run at the same time in a 3 bedroom house. If you have international students coming from a "hot" country living in a cold state – fan heaters at $20 are a good option when they dont pay for the electricity.
Be careful of how you word the paragraph about falling 2 weeks behind. As soon as they are two weeks behind the bond is all gone – they probably wont care how much damage they do when moving out. They could also be very vindictive and move out as requested but also take all of your furniture and your landlords kitchen sink
I think you have guts and maybe it is worth a try if you have the time to put into it.
I am only familiar with the Residential Tenancy Act in The Northern Territory but you will need to do a search on the Act in your state and read it carefully would be my advice.
In the Territorry you have to issue a "Notice of intention to terminate for failure to remedy Breach" to the tenant after they are 14 days in arrears, then they have 7 days to remedy said Breach. After which you can apply to the court for an order for possesion after which they have 7 days to vacate. They can then apply for the Hardship clause. (but so can the Landlord)
As you can see it is not that easy to get rid of your Tenant if they wish to make it hard for you.
Insurance can also be a nightmare especially if there is damage in the common areas. You may have to put locks on all bedroom doors fr Insurance purposes.
There is also a good article in July " Your Investment Property" Magazine on p16 about tapping the student market.
Best of luck mate you are braver then me.
OBIE…
Hi Obie, thanks for your comments,
I will look into the residential act in Victoria, What I am trying to achieve is like the university’s with there student accommodation. Ideally I would
like it if the university’s where I am thinking to sub-letting, would say to the student (we are full however Dr.Spock we can highly
recommended). Through different people I have been talking too they have have indicated which type of student to pick for sub letting. If they
damage the furniture I know this sounds silly but I am not that concerned as I have looked on ebay and I can furniture a house for 150.00
I will look at the article you have suggested, thanks again.
regards
Watch out for damage in common areas – they will all blame each other.
The people that i know doing it are Thai and they rent out to other Thai students. pile them in. It was going so well in the place they lived at they rented another one up the road. But they can go there and check things out when they pick up the rent etc. I als knew one Japanese student who was living in a 2 bedroom unit with 9 people!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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