Blocks of Flats

From: Glenn Mott


There is currently a post in the Cavaet Emptor section about a block of flats for sale in Tassie.

If it is indeed the case that a pipeline will be constructed nearby, this would produce an opportunity for anyone nearby to extract strong yields for the duration of the project. Below is an explanation.

The companies that build pipelines employ people from all over Australia due to the need for workers with certain skills. To accommodate these workers, the company needs to either build a camp or pay a Living Away From Home Allowance, usually in the region of $300-$500 per week. Believe it or not, it is usually cheaper for the company to pay each worker the allowance. It also allows the company to distance itself from day to day issues that people have.

The typical working day for a pipeliner begins on the job at 6am and finishes anywhere between 5:30pm and 9pm, 7 days per week for 28 days at a time. After the 28 days, the company will fly the worker back to the point of engagement for 7 days R & R.

As you could imagine, after 12-16 hours of manual work, the last thing a guy or girl wants to do is come home, put on a load of washing, make their bed and pop into the kitchen to whip up a nutritious meal!

If I owned the block of flats that is advertised, I would immediately create some flyers and take them firstly to the site office for the pipeline company and then to all the pubs around town (especially the ones with skimpy barmaids/strippers) advising them that you had some furnished flats for rent that could accommodate the men. Included in their rent would be:

1. All washing and drying of work clothing (ironing available for an extra cost)

2. Floors swept/vacuumed every day

3. Reasonable amount of dishes washed every day

4. Home cooked dinner provided every day, waiting, cling wrapped in the microwave.

If you were feeling extremely entreprenurial, you could also make up a form that allowed the workers to choose what they would like for lunch for the following week from a set menu (make sure the servings allow for morning tea, large lunch and afternoon tea) and leave this in the fridge each day. You could also do things like run errands (customer service reasons) for things like posting letters, putting VB in fridges, keeping up the stocks of Winnie Blues.

For this service, I would find out the exact amount that the guys (some girls, mostly guys) are making for the allowance and charge them 75% of that figure plus whatever you think is a fair thing for any extras. Make them feel like they are getting some value out of the exchange and that they are not spending the whole amount and you will have 0% vacancy (apart from R&R breaks) for the length of the project.

Glenn
 
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Reply: 1.1
From: Mark Laszczuk


Jason,
You would obviously have to be a local or live in the surrounding area. No need to be so cynical. I reckon it's a terrific post - you never know when it may come in handy for you or someone you know that might be in a similar market. Thanks for the top tips, Glenn!

Mark
'no hat, some cattle'
 
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Reply: 1.1.1
From: Jason C


Mark,
Sorry if i appeared to be cynical....
How long does this construction go for? What do u do with the property then?
Jason
 
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