Business Opportunity Renting Houses to Immigrants

[jambo]

With the reading I've been doing in the last few weeks, I can't help thinking this looks like a winner.

People who arrive in NZ want good, modern warm houses. From what I've been reading they're not easy to get.

When you arrive you've not got long to look for a house to rent so you might end up taking something you don't really want because your pushed for time.

So here's a business plan.

Buy or build a modern, warm, house or houses in an area people will like, good schools and such if they've got kids.

Rent it out in blocks of maybe 8 weeks. That gives people time to look for a really long term rental without being squeezed to rent somthing for months just because its available when they arrive.

Charge more than normal rent because its just a short term rental but high quality.

I think everyone wins from this. It's not something we can do but I thought someone might like to do this. We'd certainly be interested in renting from you.

[Super_BQ]

Location generally speaks more than what you can offer in any house. Why not just buy a house in the right location, renovate some improvements, then rent to long term tenants vs having to deal with the high turnover of dealing with renters.

[Manks]

During this 8-week period though most people don't have their belongings yet so are you also looking at furnishing the house? This is the only way it would work. And it would be extremely expensive to furnish a house here - unless you bought all second hand from TradeMe/op shops etc. But that would go against your quality message.

Speaking from experience, we wanted a low cost, central, low maintenance, fully furnished (down to pots and pans/crockery and utensils) apartment for those first 8-10 weeks, for many of the reasons you suggest. This then gave us time to figure out where we wanted to live longer term. So some of our drivers were exactly what you propose. But I didn't want to pay over the odds for those first few weeks.

What you are forgetting is that many people move out here without a job. For some couples one has a job and one doesn't. But none of us know what our spending power is going to be in those initial few weeks/months while we establish ourselves/find jobs/set ourselves up with cars etc. So we went with cost effective over quality. We rented a smaller apartment than we would have liked (studio vs 1-bed) but it was in the right price range and in the right place.

It's a nice idea, but with the high turnover of tenants, I'd be worried about maintaining the quality of the house overall.

[benandclare]

Agree with Manks and SBQ. I can see where you're coming from with the idea. When we arrived here, we'd got a job, shed load of cash for a house and were pretty determined to spend it wisely, paying over the odds for a rental would not be on the agenda. We actually ended up in a converted garage (for 6 weeks,waiting on house settlement) in a very cold Sept but loved it, all part of the adventure

Also how are you going to sell it to immigrants? Doubt you'd be full all year round. Jo100 on here has a flat that many of us have used as first base but she's never been full all year I think.

[hball]

We have exactly what you are looking for - and have had for the past six years! And we have never been empty either!! In fact we occasionally get emails from previous tenants asking if we have availability from others they know coming to NZ, and companies bringing in new employees and their families.

Our four bedroomed property was purchased specifically for this market, and carefully furnished with new product, including linen (an ongoing expense as we replace regularly, even going as far as ensuring the bedding in the children's rooms is age/gender specific for each tenant. Not a big deal until you are told that a very tired little one, after a long flight, fell in love with 'her' bedroom and settled down straight away for a sleep!!)

Location for this type of business is critical. We are one road away from a beach in Eastern Auckland, and in very good school zones. Quite a few of the families who have stayed in our property actually stay in the area after leaving us, either buying or moving on to rent an unfurnished property when their own goods arrive.

On the down side you will never be a millionaire operating this type of business!! Overheads are high if, like us, you are going to maintain the property and furnishings to a high standard, and a change in the law regarding owning rental properties has made it even less attractive to invest. We charge a fair market rent, one that is valid for a short term (min 8 weeks) fully furnished property, yet still (we believe) offer better value than hotels or motels - and of course more space!

[Beachcombers]

We have converted our sleepout into a fully self contained unit, which we rent out. Usually to couples coming into the area to work in the wine industry. We have furnished it to a high standard and provide some nice extras. In return we can get $300/week.

It's also a god send when the MIL wants to come and stay.