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Hello all, I have a couple questions for anyone with a student rental property

Myself and two partners just bought a student rental property in London, On near the college and so far the most difficult part is lining up insurance at a reasonable cost. (part of the problem appears to be that we our three unrelated parties)

Just wondered if any one currently has a student rental property and who you use for insurance?

Also do you normally get tenants to sign a house lease or lease by the room? (the house we are in the process of purchasing is 6 bedrooms, and currently is on individual room leases)

Any other advice or tips for a couple of first time investors is more than welcomed.


Thanks
 

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You are buying one of the most high maintenance type of rental on the market.

Whomever counselled you to buy such an investment next time you see them just kick them right in the nuts.

There are lots of investment properties that do not require the kind of attention that these ones do. You are now tasked with going there diligently and being on top of everything. There's a reason the insurance companies don't want your business.

My advice to you is if you don't want to be there all the time do your best to get the hell out of the deal. These properties are best for you if you want to live there and can supervise the goings on.
 

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I wouldn't be so harsh as the kick to the pants, but I do agree with Berubeland. We rent to students but only rooms in the house we live. The insurance doesn't go up when someone moves in, we just have to let the insurance company know we have someone besides our family in the home. Have you considering going through a property management company? Not that I advise them, but maybe they know some insurance companies.
 

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Re: Berubeland

I realize it's high maintenance, but I feel that there is a reason why nearly every house in walking distance to the school is a student rental -- and that is the cashflow of these homes, far outweigh other properties (I realise it will be a lot more hands on then other properties, but being 25 I feel it's worth it)

I only live 10-12 blocks away so it won't be too much of a hassle, if it requires frequent visits

Re: Addy

I as well rent out rooms in my own home and was told up to three rooms could be rented without it impacting my home insurance(so I rent out three of the rooms to students), that's why I initially didn't expect such hassle with a strictly student rental.

Thanks for the tip on seeing if property management companies have any sugestions. I figured if I start to get desperate I will just contact the other landlords in the neighbourhood and see who they use.
 

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Sounds like it would be more work to rent each room individually, then look for tenants and such.
 

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Its not that bad

I too have a Student Rental

It's insured broad form under Optimum insurance. It is steep 5 bedroom house, 1800sqft for $1500
Ensure as "Shared Accomodation" vs Boarding house

I sign them on individual room leases per year

Tips
I sign per 12 month basis.
I get the parent's credit as guarantor and or references
Proximity to school and amenities is VERY important
Non-smoking and students only
No cooking in rooms
Smoke alarm per room and Fire Extinguisher per kitchen
Fast and unlimited internet as bonus
Keypad doorlock (for convenience and possibly tracking)

I also do have other low maintenance properties. ROI on this properties is higher given the patience and time it is worth it. (it gives my daughter something to do). Not to mention appreciation on properties near the university does not seem to go down just up.

Good Luck
 

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Buying a student rental was in my opinion the best thing I ever did. Dont regret it for one minute. I do NOT do individual room leases. I have one lease for the whole house that indicates the total house rent due every month. I have all of them sign it. Therefore, if someone backs out they still need to cover the whole rent as per the lease. I use the university off campus housing website to list it. Take a look through it, it will give you a good sense of what you will need to do or write in your ad to stand out more than the others. I am a very attentive landlord though. And I am not afraid to treat them like kids (cause they are). I just texted them yesterday to admonish them about some garbage I saw on the porch and not only did I get an apology, but my husband did a drive by this morning and its been cleaned up. BUT we are also very good to them.....gift card to pizza pizza around exam time, etc.

Good luck!
 

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Hello all, I have a couple questions for anyone with a student rental property

Myself and two partners just bought a student rental property in London, On near the college and so far the most difficult part is lining up insurance at a reasonable cost. (part of the problem appears to be that we our three unrelated parties)

Just wondered if any one currently has a student rental property and who you use for insurance?

Also do you normally get tenants to sign a house lease or lease by the room? (the house we are in the process of purchasing is 6 bedrooms, and currently is on individual room leases)

Any other advice or tips for a couple of first time investors is more than welcomed.


Thanks
There's money to be made in student rentals but they do seem to be higher maintenance. I have a rental condo and a few students were interested but they seemed to be more into partying etc and likely would have been way louder than the tenants in there now.

Lots of potential in student housing but it does seem to be more maintenance

Whatever you do, get it in writing and clearly lay out the expectations beforehand
 

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I would recommend the whole house lease.

In university 5 of us rented a 6 room house and told the landlord we had a 6th lined up. Our 6th person backed out, the landlord was unable to find another 6 person group to take the place in time, so we took it and the landlord had to rent the final room out separately, which he only managed to do for 1 semester of the year.

He probably wasn't too happy with us. If it was a whole house lease he would have washed his hands of the problem and our group would have been responsible for finding another guy or ponying up the difference.
 

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Humberview Insurance Brokers.

Good luck with the rental, I know many people who started their real estate investment careers with student rentals and are now doing it full time.
 
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