How long it too long???

[Peta]

Dear brains trust,

I was wondering if someone could tell me at what stage I should become concerned about my property being vacant? This is a first IP for me and since dec 6th 2007 it is now with a second agent as the first was really bad. My plan is to rent to uni students in Bathust and I have heard they start back in mid Feb. I have had one inspection but no other enquiries. I have allowed for 2 months of mortgage but one has already passed.

The property is available as either a 4, 5 or 6 bedroom as the 5th and 6th bedrooms with the 3rd living area can be locked off - so the house can then be used as 4 beds with 2 living areas. The property has 2 bathrooms however many rooms are rented. A couple of choices there.

The property is fully furnished (all rooms are fully equipped) even down to cuttlery, crockery, fridge, microwave, clothes hangers, tvs, dvd, vcr etc etc and the agents have put on the following rents = $660/wk as a 6 bed, $550/wk as 5 bed and $450/wk as 4 bed. This works out at about $110 per/student/week which I personally think is reasonable as all they need are their undies and groceries! However, on the internet ads the only price is $660 - no indication of the rent wanted as a 4 or 5 bedder. I have requested this to be added.

However, I still have had no enquiries even though the agent has an ad on their website and also realestate.com and two large A3 coloured, glossy ads showing each room in the house (as it is huge) both inside their office and outside. The advertising is catered for but I am thinking that something is wrong if still no interest.

Any help much appreciated or I will have to sell it before I get it rented lol

 

[Perp]

I have a nearly-empty 16 bed student accommodation in Brisbane, so I feel your pain! The agents tell me that the bulk of students don't start looking until late Jan/early Feb, so give it a couple more weeks and hopefully things will be looking brighter.

Also, have you thought of advertising it as a share house for $110 per week and letting each room separately? It may be that nobody has 3 to 5 mates lined up to share with, and doesn't want to take on such a big lease without the security of roomies to share costs with.

 

[Peta]

haha! Its so ironic you mentioned that. In a previous post I was describing that renting by the room was exactly what I wanted to do and I figured it would be easier from their point of view. I bought such a big house becasue I was told that the students are usually lined up out the door and have to settle for accomodation 20 mins away becasue there isnt enough of it. So I bought the big house with this in mind and planned to get the only agent in the area that does the rent by the room format to manage it. I have since then had to move onto another agent as I ws not impressed with them.

I feel like my hands are tied what ever I do = no one to manage rent by room and difficulty in finding groups to rent as a whole.

How long have you had your place? Is this the first year with it for you? Are you renting by room?

 

[Perp]

Absolutely I'm renting by the room! Try getting a uni student to take on a $3300 per week lease

This is my first year and I'm also feeling a little anxious, but trying to be confident that it will all be sorted soon, just a couple of weeks' more patience... I'll keep my fingers crossed for you, too.

I think I'd be asking your current agent to reconsider, or thinking if your other agent was really that bad. I think that renting all in one or even two lots will be challenging.

 

[Firsthomelooker]

I wouldn't be too concerned about vacancies at this stage, uni doesn't start until mid February. The students most likely to need accommodation are the new starters... and they don't want to pay rent to move to Bathurst three weeks before they meet their first friend and have something to do (ie uni), especially not when they can stay at mum and dads for nothing and live it up as soon to be parted school friends.

I would also ensure you advertise as single rooms, I cannot think of a single student I know who would sign a $660pw lease. As a student it might be easy to find two friends to share a three bedroom house with, but it is much harder to find four friends you would share with.

If you can't find a decent PM, self manage.

 

[The Y-man]

I was told that the students are usually lined up out the door...

Was this from a reputable source? Are their other places advertising? Are they cheaper? (students are very price driven - don't care much for quality.... it's all the same after a few big parties anyway )

Check the notice boards at the uni(s) - you may be getting seriously undercut by other providers. You might want to put up an ad yourself on those noticeboards.

Whenever we did student room accomo's we always self managed... way too difficult for agents to deal with.... (and us too! we gave up...)

Cheers,

The Y-man

 

[Peta]

Thanks for all your replies.

Y Man - can you tell me what was so hard about it - is it worth getting into?

 

[The Y-man]

Thanks for all your replies.

Y Man - can you tell me what was so hard about it - is it worth getting into?

I guess it is like managing 6 properties in one go and managing the common areas as well... it can be worthwhile if it can be managed.

I am not sure about NSW, but in Victoria (under romming house regs), unless the rooms are metered separately, the utilities has to be paid by the owner. It's amazing how much gas, water and electricity the students can go through!

You'll need to maintain the garden as well.

Cheers,

The Y-man