Never bothered with a PM, one of the properties is next door, the other is at the end of my street...
7% rental return or above, is it possible?
- Thread starter Ozblonde
- Start date
Never bothered with a PM, one of the properties is next door, the other is at the end of my street...
Tim86 how does the insurance company view this? No issues with insuring?
No issues with insurance.
Banks don't like it if everyone has a seperate tenancy agreement. But as long as they are all on the one tenancy agreement there is no problem with anything. It's pretty much just the same as if 5 mates decide to rent a house together.
So what happens if one of the students leaves? You have to do a new agreement each time someone goes and another comes in?
How long do you make the agreements for usually? Do you extend this each time you need to do a new one?
Thanks!
6 month tenancy agreements usually, sometimes 12months. If one leaves they have to cover their rent until a replacement is found plus pay a fee. But they usually stay to the end of the agreement. Most stay a year or more.
If one goes off the tenancy agreement then it's just a matter of making the adjustment to the existing tenancy agreeement for the new person. No extension or other changes made to the tenancy agreement.
Hey Tim86,
Has there been a case where the student who left early refused to pay his portion of the rent? How did you deal with this?
I may be in a situation soon where I'll set up student accommodation in Sydney.
May PM you and discuss further if you wouldn't mind.
NHG
Yeah I think it's happened once in about 1.5 years. We have 10 tenants across two houses though, so once isn't bad. I think after bond we missed out on maybe 1 weeks rent before the replacement started paying.
There was a period there where the smallest room in one of the houses went without a tenant for about 4 weeks because the last person left at the end of the tenancy agreement at a bad time of year for finding replacements.
We have most of the tenancy agreements going until febuary now so that they end right at the peak time of year for students looking for accommodation. So it should be smooth sailing from here on out.
