Anyone know a property manager for BOARDING houses ADELAIDE?

Discussion in 'Property Management' started by Erica, 4th Nov, 2016.

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  1. Erica

    Erica Well-Known Member

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    I've got a 4 bedroom 2 bathroom property near Flinders Uni/ Flinders Medical Centre/ 5 mins to Marion Shopping Centre/ 2 min walk to Train stop, and on a bus rout into the city, I'm thinking it would suit a boarding house (rent by the room to students), to make it cash flow neutral (presently very cash flow negative). Does anyone here know of a property manager in Adelaide who is happy to manage boarding house tenancies, I realize I'll probably pay a hefty management fee for the increased turn over of tennants, but I'm not interested in doing in myself (I manage 3 of my own, and don't have the time for more).
     
    Erica, 4th Nov, 2016
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  2. fullylucky

    fullylucky Well-Known Member

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    one option could be: second landlord (one tenant sublease to other tenants.) find someone reliable... agents not effective at managing on per room basis as they don't live there.
     
    fullylucky, 8th Nov, 2016
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  3. D.T.

    D.T. Specialist Property Manager Business Member

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    Hi Erica,

    I think once you take the above into account you'll probably be back down to what the house would rent for normally?

    I manage some in the area - eg 2 storey place converted into 4 units walking distance from the Uni, but these are separate and as a result command normal rents for each 4.

    I think you'd be able to put the house on the rental market for a bit higher than the average house (especially this time of year when students are starting to make plans for next year) with the understanding you're likely to get a group that wants to share. I'm not sure boarding places are worth the trouble unless you live there or nearby.
     
    D.T., 8th Nov, 2016
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  4. Simon Hampel

    Simon Hampel Founder Staff Member

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    How much are you currently renting it out for?

    How much do you think you can get per room in a boarding house arrangement?

    4BR houses are a bit tricky since if you want to have it as a shared house for students (under normal lease conditions), you'd want premium rents which probably aren't justified when four people looking to share can probably get two 2BR units for similar money (since they probably don't care about having a yard) ... or you just end up competing with 3BR places who will be cheaper (and $$ matter to students).

    If 2BR units in the area are renting for around $250-260pw ... you'd need to work out how much more than $125pw per room people are prepared to pay when services are taken into account and whether the price you'll have to ask will look too unattractive compared to them just renting a normal 2BR unit instead.

    I think you might need local management for boarding houses - either yourself or a local property manager who is located nearby, since they would want to be keeping a close eye on the place.

    I recall that renting by the room was a popular strategy discussed on Somersoft around 10 years ago - might be worth trawling through the archives there to see what other people had to share about their experiences.

    I started running the numbers back then and concluded it wasn't worth the effort and stayed with traditional letting.

    Either way I'd be very interested to hear what you find or decide.
     
    Simon Hampel, 8th Nov, 2016
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  5. Erica

    Erica Well-Known Member

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    Thanks for all your responses guys.

    I agree, it'd be heaps more work to self manage a boarding house, which frankly I can't be bothered with.

    The house is currently renting for $350 pw (but this is below market value- when it was first let I didn't have the driveway and turf installed, so it still looked like a construction site). $400 per week is the appraised market rent for it (real-estate agent recommendation).

    To let by the room separately I'd need to achieve $175pw x 3 and $200pw for the master with ensuite, to make it cash flow neutral (spent $580k on it to date).
     
    Erica, 10th Nov, 2016
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  6. Marg4000

    Marg4000 Well-Known Member

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    By your figures of $400 per week being appraised market rent, that equates to $100 per bedroom averaged out, maybe more for the biggest and less for the smallest.

    Do you really think you will find people prepared to pay $175+ each?

    Even if only 3 get together, your $400 rental figure works out at $133 each.

    Sadly what you have spent often has no bearing on what rental the market will support.
    Marg
     
    Marg4000, 10th Nov, 2016
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