Student accomodation

Am looking at a student accomodation property and have a few queries.
Firstly - Insurance. Does standard insurance cover this or do you need rental insurance for each room. Also what about common areas?
Management - can this be handled by RE agents? This will be a distant ownership so someone closer needs to look after it. Also if each room is rented, who is responsable for the common areas ie lounge, kitchen, grounds?
Hi cash flow, but is it high maintenance?
Is is more of a commecial type buy where rent sets the purchase price rather than comperable sales?
What state (QLD) and council (Brissy) laws apply? Is it classed as a boarding house? This property has 9 bedrooms, 4 bathrooms and 3 kitchens (love the dep write off!)
What are others experience with student accomodation, positive or negative.
 
in Brisbance City Council a building where more than 6 unrelated people live is not classed as a house. It is classed as a multiunit dweling - a boarding house.

>>> Firstly - Insurance. Does standard insurance cover this
NO. you will need insurance specific to this type of building. It could be quite expensive . I had a quote for a 10 room timber, general public ( not student) insurance quote = $9000


There are new fire regulations in Queensland, You need to check that the place conforms - smoke detectors , exit signs, fire extinguishers etc.

> who is responsable for the common areas ie lounge, kitchen, grounds?
You will need a cleaner/caretaker to check/clean common areas , mow lawns etc. Depending on whats involved this could be %50-$100 pw


Electricity and Gas will be a few $1000 per year

>>> purchase price
set by and/or/combination of land value/cashflow after expenses

Ask to see accountant certified extract (for boarding house) from last 2 years tax return .

Most students go home for 3 month xmas break , so u need to factor into ur rent.
 
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