Rent by the Room?

[DaveW]

Its not uncommon to get a 6 month fixed term lease....the rent by the room that I look after the tenants are all middle aged and have been there for years and counting...but as mentioned, you put someone in that doesn't fit with the rest of the dynamics and things errupt

You can minimize that downside. The current occupants need to meet the new prospect. If any are not comfortable with the fit then it's not the right person.

If anyone steps out of line then just give notice to move out.

[Chnewbie]

Hi. I have been renting by the room for the last 5 years. I own a 6 bedroom 2 tb which I am now selling due to planning on shifting to stock market investment. By experience its quite lucrative. All 5 years have been positively geared and costs to leasing is low about an average of $ 300-500 a year. Its rather easy to get tenants from trademe and they are mostly visitors on working holidays and students which we prefer. We have 3-4 tenants staying more than 3 years and only leave due to changes in circumstances like job transfer to another city. Our biggest cost is a repaint of the unit which cost around $3k.

[sn1965]

Location is key.

If you’re in an area that’s fairly central nearby to universities, CBD, public transport etc - it could work out great with like minded students & professionals.

If you’re in the suburbs not so much, you’re going to be really working for the profit and losing out at times. I’ve seen friends who have tried this in West Auckland for example, absolute nightmare. Attracts low income & beneficiary tenants often with social and substance abuse issues causing fights, disagreements, damages, police call outs etc. One friend initially started out self managing, engaged two property managers who both cancelled management due to time and effort involved and ended up turning them back into normal rentals.

Keeping in mind no matter the location, you run the risk of vacancy around Xmas/New years etc especially and more so with students.