Newbie here seeking help
Living in Lismore currently brought a house two years ago for 90k and renovated. The bank now values it at 205k (worth more). Repayments to the bank are 140 p/w now renting for 220 p/w. brought and now living in IP with 5 bedrooms with flat under house (need to tidy it up) and was thinking of renting it out to uni students five minute walk from Southern Cross University when I move out and buy another IP. The IP cost 225k and the repayments to the bank are 370 pw it would rent for 500 p/w being conservative wondering what the pros and cons are in renting to uni students, and any ideas to make IP more appealing than other properties to students in the area. P/s has swimming pool what are your thoughts on that. thanksJust a couple of questions
Would you be renting this out on a room by room basis or a student holding the tenancy agreement? If on a room by room basis you may need to increase the rent to cover utilities.
One option to make it more appealing is to add cable internet to each room. Set it up on a unlimited download plan and include that price in the rent. An IP investor has done that with a similar style house in my area and doesn’t have any shortage of tenants. Students love “free” high speed internet connection.[thumbsupanim]
Gardening costs could also be included into the rent – either you or someone else does it. Students aren’t into gardening much.
One con with student accom is that the end of year break is quite long and many go home. One option for keeping tenants coming back is to offer half rent for that end of year break to save them having to move their stuff back home and then looking for a new place. Another IP investor does that. Better to get 50% of something than 100% of nothing.
Swimming pools are a lot of maintenance and could have some public liability issues eg student party and someone gets drunk and drowns in the pool.
Just some thoughts.
Thanks kevman for replying
I was going to rent it out on a per room basis at say 95 dollars a week, also there is a small flat under that I could rent for about $100 a week needs a little work done to it.
With the cable Internet is that a tax deduction and what’s your thoughts on cable TV?
I was thinking also of putting looks on individual bedrooms, I even thought about individual phone lines to each bedroom. Any other ideas?
With the pool it use to be, for a disabled person but well past it used by date was thinking of filling it in, and planting a low maintenance tropical garden with no lawns much easier to care for.
With the end of year break what does other investors do to cover there rent ideas please?
Thanks guy, this is a great forum
darlen, why don’t you contact Mortgage Hunter?
He rents to uni students by the room in Newcastle, and has them lined up waiting. He charges half rent to keep the room for the student for the next year, and I think most of them take him up on it.
As for individual locks – I think that’s a must!! Cable tv – not so important as internet for Uni students I think.
Cheers
MelDarlen,
Be careful. If you rent more than 3 bedrooms in a property, then you become a “rooming house”, under the residential tenancies act (victoria anyway) and a whole heap of extra rules.Also I know in some areas, that if you have more than 4 people living in the house than you come under a new set of council conditions called “prescribed accomodation” which can include things like requirements for health inspector checks and more.
And check insurance… i asked for an insurance quote on a share house and couldn’t get anything under $10,000 p.a. (no typo, thats $10,000). Good luck on claims if you don’t disclose this info and just get standard IP insurance.
I reccommend local legal advice, dangerous waters.If you go through, approach the local universities off-campus accomodation officer, develop a good relationship and be genuine, they don’t take too kindly to people that come across as trying to rip poor struggling students out of their measly pennies, as many have tried to before.
Good Luck.[daisy]
lifexperience
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