I know on the old Somersoft forums there were a few people with boarding houses. We are looking at building a 9 room boarding house as well as a 20 room boarding house. These are located with 7 kms of Sydney CBD As these are new builds they will be self contained with toilet kitchens in each and built to BCA and fire safety requirements such a fire check walls, wheelchair accessible rooms emergency lighting, signage etc etc. Questions I have: Who do you use for insurance, and why type of insurance is required? Do you offer fully furnished or do tenants prefer to bring their own furniture? What are the pitfalls of boarding houses? Do you self manage when a onsite manager is required? We live 5 mins away from the 20room house and won't be working so will easily be onsite daily. Are there companies that manage or do people hire a site manager and check up on them frequently? Any info would be much appreciated!
Insurance is a killer. Finance is 65% and expensive. I have a couple of clients doing this - best to speak to actual developers who have done this from the ground up.
We are good for finance to build luckily. Wondering why everyone says Insurance is high? Thanks for your reply. Looking forward to some more input.
If you have an onsite manager/caretaker, then you could 'easily' self-manage. Gone are the days of relying on the 'trustee' to collect cash every Friday and issue receipts. Most agencies will not touch boarding houses.
We are leaning that way to manage ourselves. We self manage about half of our properties now...only because we feel guilty taking them away from the leasing agent we used when we first started Investing. Once we have all the systems set up we will take them all over. I have seen some good property management program's to issue invoices and trust accounting, it looks promising!
Hi Jess, can we have a chat Ive got two boarding houses with a da about to go in for new gen new build. Thanks Neal
