I need as much info as possible . Because my friend and I just bought a house that we want to convert into a rooming house and we no very little about them so your help would be great[drummer]
Whats a rooming house? A house where the rooms are rented separately?
I rented a room in a house like this while at uni, back then I didn’t know anything about real estate, but now when i think of it, the owner would have been making a fortune.
Some potential problems are sharing bills, electricity, phone (every one has mobiles these days so you don’t really need one), and cleaning. Maybe you can factor these into the rent, and get a cleaner in once a week?
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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Terry Thanks I have thought of doing it this way to avoid conflict.
Cheers Rick
[drummer]I have a 13 bedroom in house that I run as a student house where rooms are let individually. The biggest killer is the cost of insurance. Due to fires in hostels over the last couple of years insurance for this type of property has gone through the roof. For my place $560,000 building/contents and 5 million public liability costs almost $10,000 per year now. Also you will need to check with council regards fire regulations, etc
Cheers
from Ezy….
I have a friend who has a share house,
telestra put in a pay phone…and
the owner put in a coke machine…
as for the washing machine that was a pay as you go as well…
the cost of electricity was factored into the rent
hope this helps …EZY[buz2]Might be an idea to check with your local Council what their rules & regs are.
Some Councils require you to be licenced if you have over 7 rooms (NSW). To comply with the licence requirements can be very expensive. Fire regulations concern them the most of course, but also things like the no. of bathrooms per rooms, kitchen facilities, common areas etc.
Regards,Sharon
Shaztaz & Ezy
Thank you for your in put
Cheers Rick[drummer]
I have been trying to get more information about rooming houses as a friend of mine lived in one for a while. You need to be very careful of the type of people that you rent out to – there are many drug addicts, ex-cons etc..
However, as I have been attempting to do the sums, it’s sounding like a really good idea – esp. for positive cash flow. Would like to hear your thoughts on that.
I guess you just have to be careful with costs of electricity, gas, water etc.., set up firm house rules.
Would love to hear how you are doing.Patricia
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