Student housing in Barrie (Georgian College)

[koffeedan]

Hi folks,Newly minted, just last month, my wife and I are looking in Barrie, ONT, and are particularly interested in student housing, near Georgian College.
Anybody on the forum has any experience in this area and any pointers to share? I would greatly appreciate it.
I`ve been researching the GEORGIAN COLLEGE NEIGHBOURHOOD STRATEGY document issued by the city of Barrie, and it seems pretty manageable.
I have already met with a local RE agent, who happens to be a REIN member and that goes a long way to reassure newbies. I would also like other opinions to further reassure my wife, who has endured a lot of different "ventures" from me.
This time, I think I have it right, and any opinions to strenghthen my position would be welcome.

PS Also have an interest in the Old Allandale area, which is developping very well

Thanks

Dan Herard

 

[ebolaman]

 

[housingrental]

ebolaman`s post should be viewed with little value.
Student housing has high occupancy and collection if managed well and a good product.
There`s almost never any major damage from tenants, and certainly less than residential renters over time.
Minor wear and cleaning costs are higher... but would I rather rent my house for $3700 / month to student with 100% occupancy and 100% collections and pay $300 to clean it on changeovers or would I prefer to rent it to a family for $1500 with less than 100% occupancy and collection and pay $130 for cleaners ?

Koffeedan - In many locations student housing is VERY location sensitive - an extra 10 minute WALK (WALK NOT COMMUTE) can sometimes be the difference between getting a place rented or not, or 25% rent rate. Be very cautious you understand the local market before pulling the trigger.

 

[koffeedan]

QUOTE (housingrental @ May 5 2009, 01:51 PM) ebolaman`s post should be viewed with little value.
Student housing has high occupancy and collection if managed well and a good product.
There`s almost never any major damage from tenants, and certainly less than residential renters over time.
Minor wear and cleaning costs are higher... but would I rather rent my house for $3700 / month to student with 100% occupancy and 100% collections and pay $300 to clean it on changeovers or would I prefer to rent it to a family for $1500 with less than 100% occupancy and collection and pay $130 for cleaners ?

Koffeedan - In many locations student housing is VERY location sensitive - an extra 10 minute WALK (WALK NOT COMMUTE) can sometimes be the difference between getting a place rented or not, or 25% rent rate. Be very cautious you understand the local market before pulling the trigger.

These detached 5 bedroom homes are located within 10 minutes walk from Georgian College. I was a college student myself not that long ago, and found that the majority of these kids are basically good, even if they don`t have the same lifestyle as we older folks have. It will be a matter of choosing the right ones, and have their parents back the leases.

Any practical tips from the board are very welcome and appreciated.

Thanks

 

[CarrieKoch]

I`ve dealt with a number of students as we have several rentals close to the colleges in Barrie and Orillia. Not all college students are bad...but there a couple tips i`ve received along the way:
Make sure you have a rock-solid lease. Require all students to get parent cosigners. It will help them stick to the lease and ensure you get paid. Be cautious of roomates in a 2 bedroom. I haven`t ever really seen this work out, especially if they haven`t lived together before. I`m not too familiar with rooming homes or houses where you rent by the room. We have a couple houses in Orillia that one student and their parent take full responsibility and then they rent by room to their friends. We also have one rental with 4 student friends and all of their parents are on the lease together. These both have worked out very well. We also request post-dated cheques to help them up their "score" on our system.

One thing that`s great about students is that they are smart. One day they are going to want to buy things...like cars and toys and houses. They need good credit and good references.

Barrie is very good...one thing I`ve noticed that is different between Barrie and Orillia is that Orillia seems to have more starting times between Lakehead and Georgian so that there are students flowing in at different times in the year whereas Barrie really just has the September start.

And most parents want their kids to be in safe, clean housing and will pay for it...even if it means they have to pay a couple extra months to hold it.

 

[TomRebstock]

Student rentals should produce more revenue (i.e. cash flow) than single family and yes also do require more time to support. In investing cashflow is king !

I echo the comments about having parents co-sign the lease. That`s huge. In my experience most parents of second year students want to pre-screen properties. That`s your chance to pre-screen them too.

Quality attracts quality. I buy what I would want any child of mine to live in. Clean and safe.

Most people are woried about damage. I hand over a CLEAN home and I expect them to maintain a resonable standard. I treat my students professionally, respectfully, and courteously. I generally get the same treatment. You get what you inspect meaning. If you close you eyes-I don`t like your chances. Simply monitor with your eyes and communicate your expectations.

I just had a change over. A 100% solid wood core door has a 16" crack ("roughousing?"). I told the student it was willful damge and that he had to pay, he agreed immediately.

details:
watch out for fire code issues
expect insurance rates around $ 1800 to 2300 yearly
make yourself aware of any occupancy by-laws (Waterloo, Guelph, Oshawa)

Apply what`s in don`s book and soon you have six (6) like I do.

 

[ebolaman]

QUOTE (housingrental @ May 5 2009, 04:51 PM) ebolaman`s post should be viewed with little value.
Student housing has high occupancy and collection if managed well and a good product.
There`s almost never any major damage from tenants, and certainly less than residential renters over time.
Minor wear and cleaning costs are higher... but would I rather rent my house for $3700 / month to student with 100% occupancy and 100% collections and pay $300 to clean it on changeovers or would I prefer to rent it to a family for $1500 with less than 100% occupancy and collection and pay $130 for cleaners ?

Koffeedan - In many locations student housing is VERY location sensitive - an extra 10 minute WALK (WALK NOT COMMUTE) can sometimes be the difference between getting a place rented or not, or 25% rent rate. Be very cautious you understand the local market before pulling the trigger.
Two questions. Do you rent each room out separately to strangers and hope that they get along or do you generally get groups of people who know each other renting together? Second, do you run year long leases from September or late spring when school ends? I wasn`t trying to be an idjit in my last post, I only related my experience as a student.

 

[housingrental]

Sure ebolaman

Do you rent each room out separately to strangers and hope that they get along or do you generally get groups of people who know each other renting together? Most places I rent out to groups of friends - though many on individual not group leases even if renting as a group - I do have some places that I rent out rooms to random people that don`t know each other thought try to avoid this if possible (some places are large bed count, dormitory style - ie minimal living room - and don`t attract groups well)

Second, do you run year long leases from September or late spring when school ends? There`s a mix of May and September starts for year long terms. A few are on January starts and shorter term leases but this is rare.

I wasn`t trying to be an idjit in my last post, I only related my experience as a student. No problem... Just know that in many Ontario markets student housing actually performs better than non-student rentals. Because the rent amount is low and there`s a guarantor you can collect easier... because they start and stop at the same time you can go long periods of time without a month of vacancy... these are very rare charecteristics in residential rentals.



QUOTE (ebolaman @ May 6 2009, 11:46 AM) Two questions. Do you rent each room out separately to strangers and hope that they get along or do you generally get groups of people who know each other renting together? Second, do you run year long leases from September or late spring when school ends? I wasn`t trying to be an idjit in my last post, I only related my experience as a student.

 

[housingrental]

Tom Rebstock and Epmrentals posts bring a big smile to my face

 

[ebolaman]

QUOTE (housingrental @ May 6 2009, 09:40 PM) Sure ebolaman

Do you rent each room out separately to strangers and hope that they get along or do you generally get groups of people who know each other renting together? Most places I rent out to groups of friends - though many on individual not group leases even if renting as a group - I do have some places that I rent out rooms to random people that don`t know each other thought try to avoid this if possible (some places are large bed count, dormitory style - ie minimal living room - and don`t attract groups well)

Second, do you run year long leases from September or late spring when school ends? There`s a mix of May and September starts for year long terms. A few are on January starts and shorter term leases but this is rare.

I wasn`t trying to be an idjit in my last post, I only related my experience as a student. No problem... Just know that in many Ontario markets student housing actually performs better than non-student rentals. Because the rent amount is low and there`s a guarantor you can collect easier... because they start and stop at the same time you can go long periods of time without a month of vacancy... these are very rare charecteristics in residential rentals.

Thanks. After I was blasted I began to include student housing in my search for my first property. I found some dandy looking ones but it looks as if who ever owns it wasn`t in it for the money (ie. a well heeled parent) because the rents are super low and on lease until the end of the 2010 school year. The search goes on!

 

[housingrental]

There are some investment focused ones available in Waterloo currently... Give me an email if you want me to point you in the right direction for that.

 

[TorontoMike]

We own student/rooming houses near York U in Toronto. We pay around $3300 for insurance with AXA....does anyone know of any other broker/insurer that provides insurance at lower rates for this type of product?

Student housing is very profitable...just a little more management, definitely worth the extra work

 

[housingrental]

TorontoMike - Give Van Allen insurance a call. Email me if you want additional contacts / contact info.

 

[hjung]

QUOTE (TorontoMike @ May 7 2009, 11:01 PM) We own student/rooming houses near York U in Toronto. We pay around $3300 for insurance with AXA....does anyone know of any other broker/insurer that provides insurance at lower rates for this type of product?

Student housing is very profitable...just a little more management, definitely worth the extra work

TorontoMike give Phil Jarvie a call. here`s his info.
Philip G. Jarvie, B.Sc., CRM
Senior Account Executive
HUB International Ontario Limited
Direct Line: 905-582-7086
Toll Free: 800-263-2383
Fax: 905-847-6613

I have a bunch of student rentals in st. catharines and I`ve compared more insurance policies from different companies than I care to count; his company`s policies have been by far the best--broadest coverage and most inexpensive rates.


Good luck with your insurance search,

Howard