Student Accomodation Rentals?

[mitchnewy]

Hi,

I have been thinking about investing in student accommodation for a while...
I have 3 main questions on this area of the market:
1. Does the landlord typically pay for all costs? ie electricity/water/internet etc?
2. If each room is separately locked for different tenants are there extra council/government costs incurred?
3. Does each tenant have a separate tenancy agreement or is each tenant just included on one main agreement including all parties?

Are there any other factors to consider for this scenario in NSW?

Thanks,
Mitch.

 

[Simon]

Hi,

I have been thinking about investing in student accommodation for a while...
I have 3 main questions on this area of the market:
1. Does the landlord typically pay for all costs? ie electricity/water/internet etc? Yes - but I don't pay for internet or phone rental2. If each room is separately locked for different tenants are there extra council/government costs incurred? No
3. Does each tenant have a separate tenancy agreement or is each tenant just included on one main agreement including all parties? Seperate agreement but not a full lease. I class mine as boarders and have my own contract. Hard to enforce though and if there is a problem I just cop it sweet and move on.
Are there any other factors to consider for this scenario in NSW?

Thanks,
Mitch.

My place is just by the Newcastle Uni and I suspect you are thinking of something similar. Buy me a coffee on Darby St and I will answer all your questions. PM me.

Cheers,

 

[Xenia]

There is an information for investors brochure on our website which also explains this. It's written for SA but you might still be able to get some ideas. Email me if you can't find it

 

[handyandy]

Isn't it strange that when you start thinking about certain things than low and behold up pop exactly the information that you have been pondering.

I started thinking about single room accom (multi let) as a result of Peter Koulizos's presentation the other night.

Then I find out that one of our neighbors is now doing homestays for Chinese students at some crazy (profitable) rate.

I just happen to be doing up 2 x 2bedders these I could furnish and lease out by the room which was why all this sudden flood of info is relevant. The only problem with this idea is that these properties are no where near a uni / tafe but they are within a block of the station.

Some questions regarding the servicing of the room. Is this done at start and end of lease or is there a weekly/fortnightly aspect to it? Is all bedding (blackets/sheets) provided? What about towels? Bottom line what do you provide whats excluded?

Cheers

 

[Twitch]

Hi,

I have been thinking about investing in student accommodation for a while...
I have 3 main questions on this area of the market:
1. Does the landlord typically pay for all costs? ie electricity/water/internet etc?
2. If each room is separately locked for different tenants are there extra council/government costs incurred?
3. Does each tenant have a separate tenancy agreement or is each tenant just included on one main agreement including all parties?

Are there any other factors to consider for this scenario in NSW?

Thanks,
Mitch.

Here's answers applicable for my student house:
1. Yes all utilities incl internet but excluding phone
2. yes & yes (in Vic it's only if 6+ bedrooms, cost is ~$185)
3. yes separate, a normal resi lease agreement which is over their room only. No one has a lease over the common areas.

You need to consider that banks & insurance companies may view this as commercial, not residential. This has implications for what you tell the bank when you apply for the loan, how you get the place revalued as a comprehensive reval (as opposed to kerb-side) will alert the bank, and the landlord insurance is a lot more expensive (mine is ~$800/yr).

IMHO I wouldn't tell the bank what you are doing, but it would be stupid not to tell the insurance company.

good luck