I just wanted to pass on some suggestions with respect to rental properties targeting students near universities/college. Hopefully some of this helps as we have done some trial and error to get it right.....
1. If possible find a single home which can be converted into a duplex by renovating the basement. Instant equity increase when appraisal is complete after the work is done.
2. Rent each room individually instead of by "apartment"
3. Have an "apartment" manager.... Find the most responsible tenant on each floor and empower them by creating the manager position responsible for all activities in his apartment. Give him/her a $50.00 a month rent break, but they are now responsible to keep the other tenants in line. This has worked quite well so far
4. Split your tenant agreements 50/50. We have half of our tenants on a May to May agreement and the other half on a Sept to Sept agreement. This ensures you will have consistant cash flow the entire year, and not left sitting with 15 empty rooms.
5. Recruit your tenants to find you replacements when they are leaving school. We offer a $75.00 finders fee to the tenants who can replace themselves. This cuts into our bottom line however we do not have any vacancies.
6. Tenant selection - target students who are completing challenging courses, engineer etc. They will be limited on the time available for "partying" which could potentially damage your property.
DO NOT renovate based on what you would like to see for your family! We made this mistake and have absolutely learned from it. Save the hardwood and luxury renovations/products for when you are looking to sell off the property and want it to "pop" for families. Assume everything you put into the house will get destroyed.... kijiji is a great source for used items, kitchens/bathrooms/ fixtures etc...
Thought I would contribute my 2cents to the forum. Hope something here helps....
Mike
1. If possible find a single home which can be converted into a duplex by renovating the basement. Instant equity increase when appraisal is complete after the work is done.
2. Rent each room individually instead of by "apartment"
3. Have an "apartment" manager.... Find the most responsible tenant on each floor and empower them by creating the manager position responsible for all activities in his apartment. Give him/her a $50.00 a month rent break, but they are now responsible to keep the other tenants in line. This has worked quite well so far
4. Split your tenant agreements 50/50. We have half of our tenants on a May to May agreement and the other half on a Sept to Sept agreement. This ensures you will have consistant cash flow the entire year, and not left sitting with 15 empty rooms.
5. Recruit your tenants to find you replacements when they are leaving school. We offer a $75.00 finders fee to the tenants who can replace themselves. This cuts into our bottom line however we do not have any vacancies.
6. Tenant selection - target students who are completing challenging courses, engineer etc. They will be limited on the time available for "partying" which could potentially damage your property.
DO NOT renovate based on what you would like to see for your family! We made this mistake and have absolutely learned from it. Save the hardwood and luxury renovations/products for when you are looking to sell off the property and want it to "pop" for families. Assume everything you put into the house will get destroyed.... kijiji is a great source for used items, kitchens/bathrooms/ fixtures etc...
Thought I would contribute my 2cents to the forum. Hope something here helps....
Mike
