Tag Archives: apartment rentals

Liberal budget released: These are the housing related promises

Liberal budget released: These are the housing related promises

Cities and affordable housing providers will find themselves with $11.2 billion more to spend on new and existing units over the coming decade, as part of the federal government’s multi-pronged push to help people find homes.

Of that money, which comes from the government’s social infrastructure fund, $5 billion will be allotted to encourage housing providers to pool resources with private partners and to allow the Canada Mortgage and Housing Corp., to provide more direct loans to cities.

The funding falls short of the $12.6 billion the mayors of Canada’s biggest cities requested last year and Wednesday’s federal budget shows that the majority of the $11.2 billion isn’t slated to be spent until after 2022.

Over the next 11 years, the Liberals pledged $202 million to free up more federal land for affordable housing projects, $300 million for housing in the North and $225 million to support programs that provide units to indigenous peoples off reserve.

The money, coupled with $2.1 billion for homelessness initiatives over the next 11 years, sets the financial backbone for the Liberals’ promised national housing strategy that will be released in the coming months. The document will outline how the government plans to help people find affordable housing that meets their needs, and ensure a robust emergency shelter and transitional housing system for those who need it.

Finance Minister Bill Morneau told reporters the spending will make a difference for those who rely on social housing. He said the Liberals want to ensure cities can access funds as quickly as possible to make necessary investments in the country’s stock of aging affordable housing.

Liberal budget released: These are the housing related promises

The details are among many laid out in the budget, which outlines how the government plans to spend the $81 billion it is making available between now and 2028 to address future infrastructure needs and, the government hopes, boost the economy to create new jobs and government revenues.

It also gives $39.9 million over five years for Statistics Canada to create a national database of every property in Canada. This will include up-to-date information on sales, the degree of foreign ownership and homeowner demographics and finances to answer lingering questions about the skyrocketing cost of housing that may squeeze middle-class buyers out of the market.

The Liberals clearly see a need to attract private investors to help pay for infrastructure projects, including affordable housing, given the federal government’s tight fiscal position.

At the centre of that push is a proposed new infrastructure bank that would use public dollars to leverage private investment in three key areas: trade corridors, green infrastructure and public transit.

The government is setting aside $15 billion in cash for the bank, split evenly between each of the aforementioned funding streams, with spending set to start as early as the next fiscal year on projects based on budget projections.

Morneau said that the government wants to have the bank up and running this year, including having some projects that will be identified for investors.

But the budget document again projects that the majority of the bank’s spending won’t happen until after 2022. And in the case of trade corridor infrastructure, spending isn’t expected to start until 2020, even though some experts argue this stream would give the country the biggest economic bump.

The Liberals are also tweaking how much of the bill it will cover for municipal projects under the second phase of its infrastructure plan in order to nudge provinces to pony up more money for work and to prod cities to consider using the bank for projects that could generate revenue, like transit systems.

The government will cover up to 40 per cent of municipal projects under the upcoming phase of its infrastructure plan, 50 per cent for provincial projects and 75 per cent for indigenous projects.

Source:  The Canadian Press 22 Mar 2017

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Toronto explores laneway homes as a solution to the housing crunch

Laneway homes could be a solution to Toronto's housing crisis, advocates say. The city is holding public consultations about this.

Laneway homes could be a solution to Toronto’s housing crisis, advocates say. The city is holding public consultations about this. (CBC News)

The solution to Toronto’s housing affordability crisis could be found in your own backyard.

In response to skyrocketing home prices, the city’s looking to loosen the bylaws around developing one of its few sources of underused land: laneways.

A proposal went to public consultation Monday, exploring the possibility of letting homeowners build a secondary suite on the edge of a property leading into a laneway.

But don’t call your realtor just yet.

Those smaller homes wouldn’t be for sale, said Alex Sharpe, one of the co-founders of the policy groups co-ordinating the public discussion.

“It’s not going to create a whole new crop of cheap houses that people can buy,” said Sharpe, who lives in one of the city’s few legal laneway homes and runs a group called Lanescape.

Laneway Toronto house

Alex Sharpe lives in a laneway home in Toronto and is the co-founder of Lanescape, which looks at the development of laneways. (CBC News)

Instead, it would build on the idea of a basement apartment. A laneway home would have more natural light, but unlike a basement apartment there would be more privacy because the backyard acts as a buffer between the main home and secondary suite, Sharpe said.

In theory, the move could benefit both Toronto’s renters and homeowners.

For property owners, it translates into an extra unit to cover the mortgage and house adult children or relatives. But it’s also a way to cool down the long-term rental market, which has seen supply shrink alongside the rise of AirBNB, studies have found.

“We view laneways as an opportunity to expand the supply of units in existing residential neighbourhoods,” Sharpe said. “They have the services, [they] have the infrastructure, the transit and they’re well-connected.

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Toronto laneway home owner1:06

“We’ve had a shortage of housing in Toronto in the last number of years and it’s growing in intensity because we’ve run out of land.”

Tiny home fever

Laneway homes may be new to Toronto, but Vancouver’s city council gave landowners the green light to start building them in 2009. Regina and Ottawa have also followed suit.

In fact, Vancouver actually provides a how-to guide to residents that includes potential floor plans for the tiny homes.

Toronto city councillors Ana Bailao and Mary-Margaret McMahon say laneways could be critical to the future of the city’s development.

Laneway Toronto

Sharpe lives in a laneway home with two bedrooms and a streamlined design. (CBC News)

McMahon represents Ward 32, Beaches-East York, where she said there’s a concern about the effect that high-rises would have on streetscapes.

“So this is a very measured approach to density,” she said of the laneway discussions. “We have concerns about privacy creep and what-not so you’re not going to see the Taj Mahal of four-storey laneway home; it’s going to be in keeping with the character of the neighbourhoods.”

Laneways rejected before

Toronto city staff cited privacy concerns — that secondary homes might overlook their neighbour’s backyards or cast shadows — among their reasons in a 2006 report that recommended against allowing laneway housing.

Uncertainty about how to deliver public services like garbage pick-up, barriers to emergency access and the possibility that residential properties would be subdivided also killed the idea from going ahead at the time.

Ana Bailao

Coun. Ana Bailao says that laneway homes are no different than allowing a property owner to rent out a basement suite. (CBC News)

But the current plan at the public debate would see all public services delivered from the front of the property, in the same way that it’s done for rental suites, Coun. Bailao said.

“We already have basement apartments in the city of Toronto,” said the Ward 18, Davenport councillor. “All we’re saying is maybe we should allow it at the back of the houses as well.”

Consultations are also happening within the planning departments about those changes and there’s a push to name the city’s laneways so that first responders would be able to navigate them more easily, she said.

Province supports laneways

And, unlike in 2006, laneway advocates now have the support of Ontario law.

The province made changes to its Planning Act in 2011, when it introduced new legislation that requires municipalities to “establish official plan policies and zoning bylaw provisions” for secondary units — including those for laneways.

“The policy at the province level is disjointed from the local level,” Sharpe said, something he said he hopes the public consultations will change.

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What it’s like to live in women’s-only housing in NYC

You get a housekeeper, but you can’t bring boys over

Though apartment buildings designed for professional women—think the Barbizon Hotel on the Upper East Side, or the Martha Washington Hotel on Park Avenue—are largely a thing of the past, some of these women-only enclaves still exist in Manhattan. One of these is the Webster Apartments on West 34th Street, and the New York Times is ON IT.

Specifically, they recently ran a profile of a 24-year-old resident of the building who ticks basically all the boxes you’d expect from someone who lives in what is basically a glorified dorm. She’s a recent New York City transplant (check) who works in fashion (check) and doesn’t mind the living situation because she lived in sorority houses in college (check). Her room, which measures just 13 feet by 8 feet, is decorated with twinkly lights (check), a copy of The Devil Wears Prada (check check), and a poster of Audrey Hepburn in Breakfast at Tiffany’s (checkcheckcheck). “I had to live in Manhattan,” she told the Times. “I was so excited when I went to get my license and it said New York, New York.” (Oh, honey.)

But what’s really interesting to us, as professional real estate gawkers, are the specifics of this particular living arrangement, which isn’t so different from the ones offered at trendy “co-living” situations like WeLive or Common—but without the cool start-up factor, and with far more stringent rules.

Residents at the Webster Apartments get their own rooms, but have shared bathrooms—five or six to a floor, to accommodate 25 to 30 women (each room also has its own private sink). According to the Times, rents in the building go from $1,000 to $1,800, and are determined by a sliding scale “pegged to the resident’s income.” Residents must also be employed, “at least 35 hours a week or have an internship or fellowship of at least 28 hours a week,” with a yearly between $30,000 to $85,000.

What do you get for that price? Actually, quite a lot: Housekeeping, two meals a day, plenty of common spaces (including a TV room and a library), and per the Times, “social events, most with an educational or professional bent”—resume workshops, mixers, and the like. (The resident they profiled mentions a painting workshop, but there are also yoga classes and movie nights, among other things.)

When you compare the cost of living there to something like WeLive—where a studio will soon cost $3,050 (albeit with a private bathroom)—it may seem like a pretty decent deal, particularly if you’re new to the city or not inclined to live with strangers. There is still a rule that men aren’t allowed into rooms—and given that these sorts of boardinghouses came from a general fear of women’s well-being in early-20th-century New York City, it’s not surprising that it exists, though that doesn’t make it any less weird in modern-day New York City. (Though the building apparently has “beau rooms” that are “uniquely decorated recalling ‘Legends and Lotharios.’” where you can take a, well, beaus.)

But the Webster’s website notes that it’s been filled to capacity since it opened in 1923, so clearly there’s a demand for this sort of housing—even if the audience for it is limited. And the resident the Times spoke with, at least, is happy with her situation—especially considering it’s temporary, since the Webster has a five-year limit for residents. “Even when my mom came to visit me last month and stayed on a cot in my room, she was like, ‘I don’t want to go back home!’” Isn’t that sweet.

 

Source: Curbed New York – BY DEC 9, 2016

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The one market to target in Toronto?

It may be the one market many investors are now overlooking, but one industry veteran argues Toronto is still a great buy for potential landlords.

“Everyone is concerned about all the condos being built in Toronto but every year there are 81,000 new permanent residents coming to the city,” Andrew Adams, vice president of finance and investments for Capital Developments, told Canadian Real Estate Wealth. “Compare that to the 95,000 total new residents in Toronto; prices and rents are growing.”

Prices in Toronto jumped 14.9% year-over-year in February to $685,728. Condos, however, remain a more affordable option at an average of $403,392.

One neighbourhood Adams is bullish on is the Yonge and Eglinton area in mid-town Toronto.
“The Yonge and Eglinton area is one of the strongest markets for investors in Toronto,” Andrew Adams, vice president of finance and investments for Capital Developments, told Canadian Real Estate Wealth. “It’s got the Yonge line and the Eglinton LRT and it’s one of the strongest rental markets in the city.”

According to Adams, there are two types of condo buildings available in the neighbourhood; older, circa 1970 apartment-style condos and new-build condos that boast modern amenities and finishes.
The older condos often yield rents in the $2.60-$3.00 per square-foot range, while the newer units earn investors, on average $3.00-$3.50 per square-foot, Adams says.

“The Yonge and Eglinton neighbourhood has everything you need; the RioCan Centre has recently been updated, it has great access to public transit, and its surrounded by great amenities,” he said.

Source: Canadian Real Estate Wealth by Justin da Rosa 23 Mar 2016

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The 2 Biggest Mistakes Made in Calculating Rental Property Returns

Calculating Rental Property Returns

Not only should you avoid these mistakes when you run your own numbers on a property, but you should also be on the lookout for anyone else who is making these mistakes when they try to sell you a property that is supposedly a great investment.

For anyone newer out there who doesn’t understand what I mean when I say “the numbers,” I am referring to the numbers used in calculating the projected returns on an investment property.

You’ve probably heard the term “cap rate” and “cash-on-cash return” and likely some other ones. More or less, they are all measures of the return you will get, or are getting, on your investment. “The numbers” are what are used in calculating those returns. For a more detailed breakdown of these numbers and formulas, check out Rental Property Numbers So Easy You Can Calculate Them on a Napkin.

So what are the biggest mistakes people make when running numbers on an investment property? Are you ready?

1.) Using Estimates Instead of Actual Numbers

There are actually three different ways I see people using estimations when trying to project returns on an investment property.

a.) The 50% rule

I hate this rule. I don’t know why, but I just don’t like it. Actually, I do know why. I don’t like it because it can steer new investors (and even some experienced) along a path of believing it should be used for actual evaluation rather than be used as a guideline.

However, I know a lot of people advocate this “rule”, so I’ll leave my opinions about it at that and look at it factual. The 50% rule says that, in theory, 50% of the rent you collect from a property will go towards expenses.

People use that as a guideline for whether they want a particular property or not…does it meet the 50% rule?

Here’s what you need to understand about this rule. The term “rule” is a hugely misleading term. Technically the “rule” should have been labeled “the 50% guideline.” It should absolutely only be used as a guideline when you initially glance at a potential property.

If it meets the 50% rule, great, go ahead and pursue it. But at that point, drop the “rule” from you mind and actually calculate the real expenses and don’t assume they equal 50% of the rents. If you were to pull that on a FL property for example, you could be setting yourself up for a major loss when you find out how much the actual insurance and taxes are down there. So much for that 50% safety net!

Never decide on a property solely because it meets the 50% rule. Use it only as a guideline (or if you’re like me, don’t use it at all) and then drop it.

b.) Calculating expenses

Oh MAN does this one drive me crazy. I hear it more than I could ever imagine; someone is evaluating a property to buy and they share the numbers associated with that property and they say things like “insurance is usually around $300/year”, “the taxes should be about $179/month”, “I should be able to get $1100/month in rent”, “I think it will be about $8,000 for the rehab”…

You get my drift. Please stop doing this when you evaluate a rental property. Yes, there are some numbers that will require your best guesstimate but those numbers are few.

If you are looking to buy a rental property, you can expect to have the following monthly expenses once you own the property: taxes, insurance, property management fee (if applicable), homeowners’ association (if applicable), mortgage (if applicable), vacancy, and repairs. Of all of those numbers, the only ones you can’t know for sure are the vacancy and repairs.

You do have to estimate those. The rest of the numbers, however, you can absolutely get actuals for.

Ask the current owner what they pay in taxes or look it up on the county’s tax assessor website, get a quote from your insurance company, ask your property manager how much they charge, call the homeowners’ association and find out how much they charge, and get a quote from your lender on what your payment will be. Easy!

And for the rents, because people love to guess on these too, find out how much the current tenants are paying and if there are no current tenants, have a property manager or a real estate agent run comparables in the area and determine what they deem to be a viable rent for that property in that area.

Lastly, if you are rehabbing the property to any extent, don’t just get one quote for the rehab. Get two or more to be safe. I’m telling you, there are so many unknowns and estimates required in real estate investing, get actuals in every single place you can find them. Because trust me, the numbers that you are forced to estimate can end up stressing you out enough by themselves.

Never use an estimate when you can use an actual!

c.) Projecting and speculating

Planning on raising the rent on your rental property by 3% in the next year is crazy. Almost as crazy as projecting appreciation. Guess what, you don’t get to choose when you raise the rents.

That is a common misconception, which even I had when I started, that should be thrown away. Raising rent on a property is not done just because you want it to. It’s done when the market supports it.

You can try to raise the rents but if that puts your rent over market rent, who will want to rent your house? No one, because they can rent a different property for cheaper (market rent). Same with estimating appreciation.

You have no idea how much, if any, a property will appreciate in the next 1, 5, 10, 30 years. Ask anyone who bought solely for appreciation prior to the most recent crash. Do you realize how many speculators went under in this last crash? Too many to count.

Why did they go under? Because they bought assuming appreciation rather than buying on solid fundamentals (i.e. buying for cash flow and taking any appreciation as a bonus). You are more than welcome to run a separate side sheet and add in raising rents and appreciation to see what hot shot returns both of those will get you, but don’t use that sheet as your primary motive to buy. Use only today’s (actual) numbers to evaluate a property.

2.) Thinking Numbers are Everything

Guess what, they’re not. Yes, numbers are critical in evaluating a property and they are really the only non-negotiable of all the factors that go into what makes for a good rental property. They are not, however, everything. I’ve mentioned a couple times these other “factors”, well what are they?

Keep in mind these points have room for maneuvering.

  • Location. Is it in a growth market? Is the population there on the rise or declining? Is the area safe? How are the schools? What kind of tenants will want to live there?
  • Property condition. What is the age of the property? Does it need any rehabbing? If so, what? What kind of tenants will want to live there?
  • Property management. Is there access to a good property manager to manage the property? Even if that is you because you plan to landlord it yourself, are you available to handle it?

There may be others that can be added to this list. The most important question of those, in my opinion, is what kind of tenants will want to live there? (if you didn’t notice by my italics there).

It comes down to “quality” of a property. Quality of the market, quality of the property, quality of the management. If any of those are lacking, you may hit some trouble.

Not always, and a lot of people make serious bank by investing in bad areas or by buying old, ratty properties, but be aware of the implications of those things before you buy a property should they be applicable.

You will always see returns get higher and higher (on paper) the more you go into less desirable neighborhoods and older properties. Always! And the returns may show substantially higher than of nicer properties!

Remember though, those numbers are only what is written on paper. They are not a sure thing. As soon as you get in a position of having bad tenants (especially if on a consistent basis) and an older property needing repairs, those phenomenal returns you projected could easily end up being more realistically much lower than you projected, if not even negative.

Numbers themselves are non-negotiable, but once you find a property whose numbers work, you must assess the viability of those numbers. They are far from guaranteed, I promise.

Any stories of actual returns turning out to be so far from what you originally projected you could barely believe it?

 

Source: BiggerPockets.com By;  ON FEBRUARY 8, 2014

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Student housing 2.0: How developers are filling a niche for kids, parents and investors

Varsity Properties

Frat house … just whisper those two little words and watch the neighbours cringe. For many, the mere idea of having a group of university students sharing a home on their street conjures up images of John Belushi’s wild and crazy antics at Delta Tau Chi in the classic 1978 comedy Animal House.

But have no fear, condo developers are doing their best to put drunken toga parties on the back burner. Judging by the new offerings, student living has gone upscale as brand new mid-rise and high-rise buildings sprout up in university towns. Not only are the suites furnished but the amenity spaces boast fitness studios, outdoor lounges and catering kitchens on par with condo buildings typically built for these kids’ parents and grandparents. To boot, investors can snap up a suite or two and then hand them over to a management company that will secure the tenants and cater to their every need.

“It’s an opportunity to own a piece of real estate that is revenue-generating from Day One and we expect it will be occupied for all time,” says A.J. Keilty, president and CEO of Varsity Properties of purpose-built student housing. “Universities are a fairly permanent thing. They don’t really move around or close down that much. In fact, I don’t think I’ve ever seen one [do that]. So when you have well-located real estate — in this case directly abutting and touching campus — you are always at the doorstep of a willing audience and people who need your product.”

Keilty knows of what he speaks, having studied commerce at Queen’s University in Kingston, Ont. while living in a typical frat house: seven bedrooms, one bathroom and masses of garbage. The landlord lived three hours away and didn’t respond quickly when repairs were necessary, he recalls, and that awakened a business idea. For the past 12 years, Varsity Properties has been “building communities for students and providing hotel services,” with 1,333 beds in hundreds of suites currently being managed at purpose-built student condo projects in three Ontario cities.

Right now, Keilty’s team is gearing up for University Studios (universitystudios.ca), an eight-storey, 308-unit building set to rise steps from Oshawa’s Durham College and University of Ontario Institute of Technology (UOIT). The bachelor units, co-developed by Podium Developments and Building Capital, will have suites ranging from 274 to 376 square feet (hence their “SmartStudios” moniker) though each room promises a private bathroom, study area, bed-table combo, storage space plus shared kitchen and washer-dryer. There’s a lounge and kitchen area on each floor for entertaining company, plus ground-floor amenities with four meeting rooms, a fitness facility, outdoor lounge and barbecue area. Once sales launch, in early 2016, parents or investors can pick up units starting at $149,990 and with maintenance fees starting at $115 per month. It’s anticipated each suite will net an average monthly rent of $1,000. Occupancy is Summer 2018.

“So when you have well-located real estate … you are always
at the doorstep of a willing audience and people who need your product.”

With 10,000 undergraduate and graduate students at UOIT and many seeking accommodation nearby, administrators are pleased with the action. Says Murray Lapp, UOIT’s vice-president of human resources and services: “The private sector is providing housing options that meet a variety of UOIT students’ needs, choices that complement the residence options they have on campus. It would be also be prudent for developers to ensure the availability of grocery and other service outlets on the ground floor of new off-campus facilities, where students can work and shop.”

Interestingly, it’s proud Moms and Dads who are pushing developers to build new digs for their kids.

“As parents, if we’re going to invest in our children, we want to give them the best chance of succeeding by putting them in an environment that’s safe and has all the student life programs to make them do well,” says David Choo, owner of Ashcroft Homes, which is behind the 26-storey, 329-unit Capital Hall Condos (capitalhallcondos.com) project, managed by Envie, near Ottawa’s Carleton University. “We see Envie as the brand that takes them from … second-year right to graduation to grad school to young professionals. It’s condo-style living with a ton of amenities all geared to that young adult.”

Choo is heavily invested in Ottawa, having topped off the 30th floor of a student rental building set to open in the spring. He’s now marketing Capital Hall next door, featuring furnished studios, one- and two-bedrooms ranging from 317 to 645 square feet and priced from $179,900 to $350,000 (its three- and four-bedroom units are rentals only). There will be 25,000 square feet of amenities including fitness, party and games rooms, courtyard, bicycle spaces, café, convenience store and a food market. Students will be able to walk, cycle or take the O-Train to school and access a social calendar of cooking classes, skating club and more. Occupancy is May 2018. Envie manages the building, which is 50 per cent sold.

“… If you invest in student condos,” says Choo, “you don’t have to worry how the economy is doing. There’s a steady stream of demand.”

Darryl Firsten, president of In8 Developments, is convinced that investing in student condos is a money-maker. His company has put up eight purpose-built student projects in Waterloo, Ont. Now In8 is touting a 20-storey, 223-unit project called The Capitol Condos (thecapitolcondos.com) near Queen’s, complete with gym, rooftop terrace, study lounge and restaurant. Suites range from 453 to 1,118 square feet and $239,900 to $449,900 with occupancy in September 2018. It’s 50 per cent sold and it’s managed by In8.

“[Investors] get a brand new condo, Tarion warranty, it’s managed, it’s fully rented and furnished,” Firsten says. “It’s a worry-free investment.”

This has Ali Naqvi intrigued. The Markham, Ont., resident, 43, owns several condos and uses a certain calculation to determine worthy investments. This one seems like a good buy, especially because it’s managed by an outside company. Though Naqvi admits he’s a tad wary of renting to students, “I have enough comfort to know that some of the lease agreements that we’re going to do will tie in students and their parents to be responsible for XYZ. So if they destroy the apartment, they’re going to be responsible for it. That’s how I’m going to structure it.”

Source: Suzanne Wintrob, Special to National Post | January 18, 2016

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Is your city a good place to invest in student rental properties?

Picking the right place in which to purchase a student rental can be a tricky process. There are a variety of considerations to think about, over and above single-family home considerations. Get it right and you could be in cash-flow heaven, but get it wrong and you could be in for a tumultuous time.

Here are my top five considerations when deciding if a particular city will work for the student rental market.

1. Financial

First things first – will it cash flow? Clearly, if it will not cover all your expenses, then it would not make a good buy-and-hold investment.

The traditional way to measure viability of real estate is the one per cent rule (the monthly rental price should equal one per cent of the purchase price of the house). So, if the property costs $300,000 then you’d need $3,000 a month in rent. Also, start your research on what the students pay for rent – check Kijiji and the off-campus housing site.

*Expert tip: If you see For Rent signs when looking in neighborhoods for houses, give them a call. You can ask about rental rates, how many rooms are available (vacancies) and, if you’re talking to the owner and want to be bold, ask if they’re interested in selling the house. The answers to these questions will give you great market intelligence.

2. City Regulations

Are student rentals licensed in your city of choice? If so, you’ll need to find out what the stipulations are around number of rooms/students, inspections and fire safety, among other things. Give the city a call and they’ll be able to let you know all the details.

The outcome of this will impact your financials as well. For example, if the maximum number of students is four then four multiplied by $500 per month in rent will give you $2,000 in revenue. If you can get five or six rooms, it changes financials significantly.

3. Demand

Again, looking at online ads and talking to off-campus housing will help here. You don’t want to buy a house and find it extremely hard to fill due to oversupply of student housing. How many students attend that university or college? Is there a lot of available land nearby to build purpose-built housing? (This could impact your purchase in the long term.)

*Expert tip – Put up a great Kijiji ad very similar to the type of house you’re looking to buy to test demand (obviously, don’t include exact addresses).

4. Area

Is it possible to buy houses in the area where students want to live? I like to buy houses within a 15 minute walk to the university or college (these houses are always in highest demand). If this isn’t possible then understand where the students want to live. Look for amenities, public transit and entertainment.

5. Property Type

There are a number of property types that aren’t ideal for students. It’s useful to look at the suitability of the available housing. Are these condos, townhouses, semis or detached? Start to look at room sizes and layouts which would work for student accommodation. In addition to bedrooms, there also needs to be common areas, kitchen and sufficient available bathrooms.

The age of the house will also impact what renovations may need to be done prior to renting it out. 

Lastly, whatever you decide, try to speak to some local experts, including property managers and Realtors – they will likely have lots of great local knowledge.

Tim Collins is a real estate investor who focuses on student rentals, building his portfolio with joint-venture partners while helping others with coaching, online courses and workshops.

 

Source: Canadian Real Estate Wealth – Tim Collins 24 Nov 2014

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