Our office recieves many calls from investors regarding the pros and cons of student accommodation.
While student accommodation can provide a great income there are extra costs which you should take into account.
All residential landlords budget for water and land rates, however, unlike normal residential properties the water usage component can not be charged to the tenants.
Likewise, as there are multiple tenancies within the property we are unable to charge tenants for electricity, gas or water usage. All these costs must be factored into the landlord’s budget.
Experience has shown us that, during winter electricity costs can spiral. Consider providing oil filled electrical heaters in the tenant’s bedrooms, if the tenant is left to provide their own they will of course purchase a cheap fan forced heater which will cost a fortune to run as well as being a potential fire hazard if it is accidentally left off during the day.
Obtain advice on the cheapest option for hot water and install water saving taps and showerheads.
If your property has a garage, keep it locked for your own person storage. Unfortunately tenants will sometimes use your garage to store unwanted items and leave them at the end of the tenancy and as there are multiple tenants it can be very difficult to police which tenant has left the rubbish.
Our office conducts four routine inspections per year, (the maximum amount of times allowed under the residential tenancy act) this ensures that even messy tenants clean their every 10 weeks or so during the semester.
We also recommend engaging cleaners to regularly attend the property.