student housing

[Tmacwhirter]

How does everyone feel about student housing? I was thinking in Hamilton, Ontario. I know there are many downfalls to it, but there are also upsides to it. How do you feel on this subject.



Thanks!

 

[CarrieKoch]

I will say that despite a huge wall of fear I overcame my fears this year.



I took on management of 4 student houses here in Barrie this August. (I had done all the September placement for the clients back in February and March). We also converted a dog duplex into a student house in Orillia and created a duplex in Orillia that houses all students.



I LOVE IT.



August - Sept 15 you could have asked me and I would have advised you to run away screaming. But the properties I took on were poorly managed and housed horrible, disrespectful tenants who had no respect for me. And it was impossible to get them to listen. Between 4 houses damages and garbage totalled $15,000. Ouch.



Now that the tenants I chose are in rent issues are non-existent. When we drive by the properties you can't tell they are even rentals. I have 35 doors and I get maybe 1 call a month. We inspect regularly and they are clean and maintained inside. I have great relationships with all of the students.



I find that parents are the biggest plus and minus in student rentals. If something goes wrong call Mom/Dad, but you better believe that Mom/Dad are wanting the very best for their son/daughter and they will hound you til they get it. Especially when it's their dime.



Cash generated is incredible. We often get paid early by students and post-dated cheques from those who don't. We got great insurance from Hub.



Lots of additional things to say....let me know if you have a specific question.

 

[orei]

Carrie has hit the nail on the head. Management is key to success with student rentals! You need to employ a bit of a different system then that with a 'classic' rental.



Parental co-signing on leases is essential. So are more frequent inspections.



Student tenants are generally all great - a few bad apples, but you need to be able to screen them out.



You also need to consider why Hamilton? Are there and political issues in Hamilton that makes student housing more difficult? Student liscencing? One of the experienced/knowledgeable REIN members will chime in on this I'm sure....

 

[GaryMcGowan]

We are buying in Hamilton but not Student Rentals. I know that when managed correctly it can be very rewarding.



If you wanted some more info on "Why Hamilton" you can download our eBook. Click on the link in the signature.

 

[housingrental]

I have lots of student rentals in Watelroo



As with everything it can depend on which property, at which price, managed by whom, etc..generally though properties rented to students offer an investor the highest sustainable net income.



Be cautious anywhere in Ontario currently with potential for future renal licensing.

 

[stevegwhite]

Student housing was my main reason for getting into real estate. I got inspired when I was at school and moved into a house in second year with friends. I was amazed how much the landlord made on a house he recently inherited from his parents.

We finally made the move this summer buying two townhome condos.

We're quite happy with the arrangement. For us getting parents involved is key. We walked them through showed them all the keyed licks on each door, the wired smoke alarms etc. We include all the extras - cable, Internet, hydro and a monthly visit from a cleaning lady to ensure things don't get too dirty very long. We charge extra for all this and find it's filtered out the early dropouts and partyers who were looking for the cheapest units possible.

 

[MrHamilton]

Hi TMacWhirter,



I'm a big fan of student rentals in Hamilton, Ontario both near Mac and Mohawk. There are pitfalls but the same is true with small multi-residential houses in Hamilton. I have REIN clients who invest in both student rentals and multis in Hamilton, both work great if you're alright with more doing more management and having to spend more on maintenance. That said, I've got student rentals on my radar for my next purchase.



If you're ever planning to be in Hamilton and want to chat drop me an email and we can setup a time (more notice the better



Best,

Erwin

 

[MrHamilton]

[quote user=orei]You also need to consider why Hamilton? Are there and political issues in Hamilton that makes student housing more difficult? Student liscencing? One of the experienced/knowledgeable REIN members will chime in on this I'm sure....



FYI - there is not student licensing at this time in Hamilton. The city basically has no appetite for student licensing because student housing runs rampant in the neighbourhoods adjacent to Mohawk and Mac. To give you an example, this home owner I was speaking to explained to me when she bought 13 years, there were 3-4 student rentals on her street. Today, there are three owner-occupied left (was four but we bought her house) and Mac continues to grow in student population with another 1,275 on the way made possible with the construction of a new liberal art/social studies building.



Zoning on the other hand only allows for three "lodgers": individuals who are not related to one another and share key facilities: kitchen, bathrooms. So keep that in mind if you do choose to invest.



Hope that helps!!

Erwin

 

[housingrental]

Hi Erwin



Rental licensing in time might come to Hamilton, and most other towns



Be very cautious