This style of property has risen to popularity over the last couple of years and differs considerably to the old boarding house style of shared accommodation.
The boarding house concept, very popular during the depression and post war era, was generally run by a live in manager or proprietor, and provided both meals, cleaning and laundry services.
The modern co-living concept is a specifically designed house that, from the exterior, looks like every other house in the area. However, inside is a separate bathroom for each bedroom, separate linen presses and separate lock up pantries in the kitchen. They are fully furnished including appliances, crockery, cutlery and utensils.
Tenants are responsible for their own cooking, cleaning, laundry etc. Management is by way of external property managers. ENSURE THEY ARE EXPERIENCED IN THIS AREA, and have a reliable source of tenants.
We allow for higher maintenance and cleaning costs including mowing, when doing our due diligence as our experience in this area (I’ve been running shared accommodation for over 30 years) dictates it is the difference between quality tenants and tenants we don’t wish to deal with.
Rent returns are exceptional with very limited vacancy. The tenants are on fixed term leases the same as any other rental property.
Pros are Higher rental income. Multiple tenants lowering the risk of vacancy. Higher depreciation for taxation purposes.
Cons are Need specialised experienced property managers. Slightly higher maintenance and running costs which are more than offset by the higher incomes.
My vision is to help people on their financial security and freedom journey.
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