All Topics / General Property / Boarding houses

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  • Profile photo of Pro investorPro investor
    Participant
    @pro-investor
    Join Date: 2003
    Post Count: 108
    November 23, 2004 - 10:44 am

    hi

    Could anyone tell me about buying boarding houses. If there was a on site manager and you buy it for a IP do you get a real estate agent to manage it or do most people get a on site manger

    Also if there are any pitfalls in buying boarding houses.

    Thanks Rob

    Profile photo of IbuycashflowIbuycashflow
    Participant
    @ibuycashflow
    Join Date: 2004
    Post Count: 274
    November 24, 2004 - 10:09 am

    Hi Robert,

    One of the major pitfalls of a boarding house is you get boarders. They tend to be more transient and less responsible with their money.

    On the positive side if you are of the mind set to handle the problems that go with boarding houses then you can make extremely good money.

    I presently own a pub with 40 rooms which is being run as a boarding house. We are converting it to tourist accommodation and will sell the lease off separately to be run as a motel. By doing this upgrade we effectively raise the room rate from $100 per week to about $75 per night.

    That’s one option for you to keep in mind.

    Regarding the on site management it would depend on the size of the boarding house. It would need to be cost effective to have a full time manager although it would always pay to have someone responsible enough to ensure the place remains secure.

    Cheers
    Jeff

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