Fundamental Invest Founder & Director – Andrew Black talks to us about an emerging type of property that’s making more affordable accommodation available in a market that’s struggling with rising costs.
Co-living is a house design consisting of multiple bedrooms all with ensuites and some shared spaces such as kitchen, living and laundry.
Each tenant has a separate lockable pantry within the kitchen, separate lockable storage cupboards and separate air conditioning controller for each of the bedrooms. All bedrooms are secured separately for each of the individual tenants with each having their own private bathroom.
Homes are rented by leasing professionals who speacialise in co-living, some of them exclusively. This gives access to renters not wanting or needing a full house at a more affordable rate and protects both the tenants and landlord by having lease agreements specific to this type of occupancy.
Example:
A traditional 4×2 in the suburbs rents for $750pw.
A 3×3 Co-living home in the suburbs rents out each bedroom for $300pw which will net the landlord 3x$300pw = $900pw.
This higher yield encourages further investment and desperately needed supply to the market to help ease the tight vacancy rate and meets the higher demand of single applicants looking for appropriate accommodation.
Co-living is gaining in popularity across all the major capital cities as rents continue to rise. Whilst not suitable in all locations, it certainly have a place in the housing mix and represents a sound investment option for those wanting to take advantage of potentially higher yields.
The evolving nature of demographics in Australia coupled with rising housing costs has made this form of accommodation far more popular than in years gone by. It also means less homes ending up with empty rooms, a win win for both tenants & landlords.
Other common discrepancies from regular rentals are also catered for in this type of dwelling such as allowances for cleaner to gardens and common areas, fixed weekly utility bills to give surety to tenants.
If you like further information please get in touch [email protected].
Andrew Black
With over 15 years of experience in the property industry, Andrew Black has built a stellar reputation as a trusted leader and expert.