How to room rent

[wll6568]

I am trying lease out a four bedder now. It used to rent for $480 for the past four years and what I have found now is the condition of the house has turned old and people coming to see has been reluctant to pay tat amount.

So what I am thinking is to split rent by room basis. Does anyone do that? Most likely would be to rent to students... But just not sure how to deal with bills. How do you get them to split bills? Especially if one moves in later than the other or one only lives for 1.5 months while others stayed longer term?

 

[skater]

I am trying lease out a four bedder now. It used to rent for $480 for the past four years and what I have found now is the condition of the house has turned old and people coming to see has been reluctant to pay tat amount.

Are you sure it's due to the condition of the home, or is it market sentiment? A house doesn't 'turn old' in four years. Have you kept the place well maintained, or have you let it go to rot? I'ts amazing what a coat of paint and some new floor coverings can do for a place.

You do realise that it's close to Christmas, so some people are reluctant to move right now. You may get a better result in the new year, in the meantime, you could offer a week or two free rent to entice a new tenant.

So what I am thinking is to split rent by room basis. Does anyone do that? Most likely would be to rent to students... But just not sure how to deal with bills. How do you get them to split bills? Especially if one moves in later than the other or one only lives for 1.5 months while others stayed longer term?

You do realise that this takes a lot more work than a traditional rental, don't you? As for bills, usually the landlord pays for them. It's the only fair way.

 

[wll6568]

Yeah, it could be that it's not a good time to look for tenant at this time of the year. The house is about 50, 60 years old but it got renovated I think ten or so years ago, so when I bought it was still reasonable old. But I think because I rented it to a group of students for past three years, I found things got quite old. So not really sure what I can do to it to attract tenants.

 

[The Y-man]

So what I am thinking is to split rent by room basis. Does anyone do that? Most likely would be to rent to students... But just not sure how to deal with bills. How do you get them to split bills? Especially if one moves in later than the other or one only lives for 1.5 months while others stayed longer term?

Check the regulations in the state your property is in.

In Victoria, it is illegal to pass on the utility bills to the tenants without separate metering to the rooms.

There are also limits on the amount of rent you can collect, as well as differences in termination notice times etc.

We did for a while, but got undercut so badly by illegal operators that we gave up.

The Y-man

 

[D.T.]

I am trying lease out a four bedder now. It used to rent for $480 for the past four years and what I have found now is the condition of the house has turned old and people coming to see has been reluctant to pay tat amount.

So what I am thinking is to split rent by room basis. Does anyone do that? Most likely would be to rent to students... But just not sure how to deal with bills. How do you get them to split bills? Especially if one moves in later than the other or one only lives for 1.5 months while others stayed longer term?

Firstly, is the house in an area where people would want to rent by the room?

Secondly, it takes a bit of work to operate and may not be worth it. The bills are generally paid by the owner and its 'included' in the rents charged.

In SA (which is where i assume the property is because that's where you are), there are a few rules, assuming you want to do it legally:
- House rules must be printed and left in the house somewhere as well as given to each person individually
- Must provide locks on bedroom doors
- Must maintain the shared/central areas (not the tenants responsibility)

Theres other rules as well refer http://www.sa.gov.au/topics/housing-property-and-land/housing/renting-and-letting

 

[Scott No Mates]

Over 10 years since it has been refurbed.... sounds like it may need a lick of paint, floor polish/carpet, deep clean/regrout of bathroom & kitchen etc.

That might make it more attractive. Have you had any feedback from the pm? If not, get one in to make some recommendations (under the premise that you want to engage someone).

 

[skater]

Over 10 years since it has been refurbed.... sounds like it may need a lick of paint, floor polish/carpet, deep clean/regrout of bathroom & kitchen etc.

That might make it more attractive. Have you had any feedback from the pm? If not, get one in to make some recommendations (under the premise that you want to engage someone).

Exactly my thoughts!

 

[wll6568]

Exactly my thoughts!

I painted the kitchen walls last night, lol. Yeah, it's a very good location with 5 minutes walk to the interchange. That;s why I was able to rent to students at that price for the past four years.

I have a few enquiries and most came in and left with the impression that it;s too high for the wear and tear. I think because the students made the kitchen too dirty, oily. Thats why I painted it over, i think should be better now. Hopefully will get some real good applications.

 

[skater]

I have a few enquiries and most came in and left with the impression that it;s too high for the wear and tear. I think because the students made the kitchen too dirty, oily. Thats why I painted it over, i think should be better now. Hopefully will get some real good applications.

I do hope you cleaned it first.

BTW, paint the whole house! After 10 years, it needs it! Floor coverings too!

 

[MKP]

Landlord pays the bills and factored it in your rent; the trap is some tenants will think they entitle to us as much power or water so they waste them. Maintenance of the common areas can be an issue, even if you employ a cleaner, because no one will check the cleaner's job. Insurance cost can become expensive (you need a special type of insurance).
But I think it will work well if you live nearby and can do a aregular visit.

I am trying lease out a four bedder now. It used to rent for $480 for the past four years and what I have found now is the condition of the house has turned old and people coming to see has been reluctant to pay tat amount.

So what I am thinking is to split rent by room basis. Does anyone do that? Most likely would be to rent to students... But just not sure how to deal with bills. How do you get them to split bills? Especially if one moves in later than the other or one only lives for 1.5 months while others stayed longer term?

 

[MKP]

And there is social/emotional issues with sharing ... even the humble toilet paper can become a source of conflict.

Landlord pays the bills and factored it in your rent; the trap is some tenants will think they entitle to us as much power or water so they waste them. Maintenance of the common areas can be an issue, even if you employ a cleaner, because no one will check the cleaner's job. Insurance cost can become expensive (you need a special type of insurance).
But I think it will work well if you live nearby and can do a aregular visit.

 

[see_change]

we're contemplating doing something similar with our mosman unit ( s ) , but rather than us as the owner , letting rooms out on an individual basis , our daughter would " rent " the unit off us and then she would advertise the other rooms for people to share with her . She's get a discount on the rent

Cliff

 

[Scott No Mates]

She's get a discount on the rent

Cliff

and you get someone looking after your interests.

 

[see_change]

and you get someone looking after your interests.

Yes

Cliff

 

[MKP]

Will this affect your daughter's tax affair? Sorry to ask you this, but I am interested in the idea.
MKP

we're contemplating doing something similar with our mosman unit ( s ) , but rather than us as the owner , letting rooms out on an individual basis , our daughter would " rent " the unit off us and then she would advertise the other rooms for people to share with her . She's get a discount on the rent

Cliff

 

[see_change]

Will this affect your daughter's tax affair? Sorry to ask you this, but I am interested in the idea.
MKP

Can't see why it would . Same as a group of people renting a house , but only putting one name on lease , that collects the rent and passes it on to the land lord .

What makes it attractive in our situation is the two units are big for their size and have an interconnecting door . Combining them as one , means that the lounge of one unit can be utilized as a bedroom so being able to rent out two bedrooms individually rather than the unit as a one bedder would probably result in decent increase in the rent.

Cliff

 

[fokas]

I painted the kitchen walls last night, lol. Yeah, it's a very good location with 5 minutes walk to the interchange. That;s why I was able to rent to students at that price for the past four years.

I have a few enquiries and most came in and left with the impression that it;s too high for the wear and tear. I think because the students made the kitchen too dirty, oily. Thats why I painted it over, i think should be better now. Hopefully will get some real good applications.

Show us some photos of the place, and it's online listing.