Buying a boarding house
- Thread starter Elliotte
- Start date
Just read through the whole thread. What an inspiring story!
Just goes to show that with the right attitude anything is possible. I had to chuckle at an earlier post that jokingly said one day people will be telling you how lucky you have been.
With all that going on, thanks for keeping the forum updated. I'm sure there are many that follow but don't post.
Just goes to show that with the right attitude anything is possible. I had to chuckle at an earlier post that jokingly said one day people will be telling you how lucky you have been.
With all that going on, thanks for keeping the forum updated. I'm sure there are many that follow but don't post.
Funniest update ever - if you were with me from the start you'll recall the creepy guy on the phone constantly calling. Argh. Well he ended up in Tamworth, called, I recognised him and told him he couldn't have a room. Tried calling again with fake names when I had others answer phone for me. AND...just turned up at the door with a fake name. Told him he was a crazy old ******* then called him on his mobile after I shut the door (had the number stored under DO NOT ANSWER). Opened the door on him on his phone. Told him to get lost, I knew it was him and he wasn't to bother me. Then went and got a tattoo covered male guest just in case ha ha.
Anyway in other news the house is running well enough now with live in managers and staff my son and I are moving into a small rental now to get some down time back in our lives. House keeps going in interesting waves - Burmese refugees our latest learning curve, now a bunch of tradies working in town who are super easy to deal with..never can tell what each week brings. A quiet week now is around 19 guests bringing in about $2500 and a busy week is edging toward 4K with 30+ people. So far I'm still just pumping everything back into the house for upgrades and improvements and having some fun with it all- this week thinking of vending machines and old arcade games to add into our new lounge room with wood heater!
After promising I wouldn't go looking for another project just yet I can feel my eye starting to wander. Can't afford to buy anything else but leasing is no dramas...
Anyway in other news the house is running well enough now with live in managers and staff my son and I are moving into a small rental now to get some down time back in our lives. House keeps going in interesting waves - Burmese refugees our latest learning curve, now a bunch of tradies working in town who are super easy to deal with..never can tell what each week brings. A quiet week now is around 19 guests bringing in about $2500 and a busy week is edging toward 4K with 30+ people. So far I'm still just pumping everything back into the house for upgrades and improvements and having some fun with it all- this week thinking of vending machines and old arcade games to add into our new lounge room with wood heater!
After promising I wouldn't go looking for another project just yet I can feel my eye starting to wander. Can't afford to buy anything else but leasing is no dramas...
What is the occupancy rate up to now?
have you done anything with some of the worst rooms yet or are they still closed?
have you done anything with some of the worst rooms yet or are they still closed?
Usually occupancy is close to 100%. Has been for months. We have sudden dips - like when the Burmese left (10 of them) we went down for a week but now back to 90% or so. I don't aggressively try and fill rooms at the moment and am happy to always have a room or two free in case people urgently need something or a last minute booking I forgot about. But have had times this month when I've sold the managers quarters and gone off on a mini break to find somewhere else to sleep so about time we had our own space.
We've had all the rooms pretty much opened since the beginning and they are all looking pretty good. Last rooms inside were sanded just in time for Music Festival. Now it is winter we are just reorganising house a bit to bring some of the outside TV rooms etc into the main house to try and keep it warm! Big old place to work out heating in. Was in my kitchen in ski gear the other weekend just about zero and I was like "OKAY..so...fixing the fireplace is top priority now I guess"
Most feedback is that we need to reno the bathrooms and I agree it has just been a matter of all the fire safety and other cosmetic stuff in rooms first! 19 new solid core doors went on this week too so finally almost at the end of the list of council upgrades required. Bathrooms will be a bit of a pain - have to do one at a time so people still have use of three other bathrooms while we work.
I think for what we are charging and all the extras we offer than hotels don't we are doing super well. Rating well on my FB page I setup, and really well on booking.com and even on a slow week with no advertising will get five-ten new weekly bookings via word of mouth which keeps up almost full.
We've had all the rooms pretty much opened since the beginning and they are all looking pretty good. Last rooms inside were sanded just in time for Music Festival. Now it is winter we are just reorganising house a bit to bring some of the outside TV rooms etc into the main house to try and keep it warm! Big old place to work out heating in. Was in my kitchen in ski gear the other weekend just about zero and I was like "OKAY..so...fixing the fireplace is top priority now I guess"
Most feedback is that we need to reno the bathrooms and I agree it has just been a matter of all the fire safety and other cosmetic stuff in rooms first! 19 new solid core doors went on this week too so finally almost at the end of the list of council upgrades required. Bathrooms will be a bit of a pain - have to do one at a time so people still have use of three other bathrooms while we work.
I think for what we are charging and all the extras we offer than hotels don't we are doing super well. Rating well on my FB page I setup, and really well on booking.com and even on a slow week with no advertising will get five-ten new weekly bookings via word of mouth which keeps up almost full.
If it is going to be quicker or more economical, consider getting a temporary builder's amenities block. Hook up to temp sewer connection and water and voil? 2 toilet and shower blocks.
The buildrrs can then rip into it without inconveniencing anyone and in half the time.
The buildrrs can then rip into it without inconveniencing anyone and in half the time.
After managing 3 van parks and surviving (just), I think sometimes the best way to clean up Dodge City is with a bulldozer. The only ones capable of effectively managing accommodation catering for the socio-economically challenged are those people themselves and who'd want to employ one. It's dangerous, stressful and risky. Been there.
Another way would be to close it so they re-settle elsewhere, renovate, then re-open with higher rates and clear guidelines requiring strong references and any other requirements they may find difficult to meet.
Good luck
cheers
crest133
Another way would be to close it so they re-settle elsewhere, renovate, then re-open with higher rates and clear guidelines requiring strong references and any other requirements they may find difficult to meet.
Good luck
cheers
crest133
one idea for stabilising your income
Hey Elliotte,
This kind of project is more than I would take on right now however... I friend of mine had a boarding house as his first project but what he did was get in with the local council and local government and found out that they needed more accommodation for mentally challenged people. These were people who could operate in the world but needed a lot of support... (it was kind of like a halfway house)
The cool thing was that the government paid the rent (so it was always on time) the tenants stayed for years and the Govt found new tenants as soon as someone moved out...
there are plenty of compliance issue's you'd need to check out but it would be well worth the time and effort to get into that area.
Hey Elliotte,
This kind of project is more than I would take on right now however... I friend of mine had a boarding house as his first project but what he did was get in with the local council and local government and found out that they needed more accommodation for mentally challenged people. These were people who could operate in the world but needed a lot of support... (it was kind of like a halfway house)
The cool thing was that the government paid the rent (so it was always on time) the tenants stayed for years and the Govt found new tenants as soon as someone moved out...
there are plenty of compliance issue's you'd need to check out but it would be well worth the time and effort to get into that area.
Wow. What a great read. Kudos.
Thanks for sharing. Hopefully I can share something with you - ATO precedent 85888. Happy reading!
Thanks for sharing. Hopefully I can share something with you - ATO precedent 85888. Happy reading!
I own a few boarding houses in Brisbane, bought my last one similar time as you Ell. Been good to read your story, mine didn't have quite the work yours did though!
Can't find anything on a google search Aaron. Got a link?
https://www.ato.gov.au/rba/content/?ffi=/misc/rba/content/85888.htm
kudos to coastymike (aka House of Wealth) for the find, as always.
kudos to coastymike (aka House of Wealth) for the find, as always.
Interesting stuff. I'm looking at selling a smaller BH and putting the money into a larger one, so may be able to work on the CGT.
Few differences for me though. They're on leases and not students! Is this a private ruling? I'll have to talk to my accountant!
Few differences for me though. They're on leases and not students! Is this a private ruling? I'll have to talk to my accountant!
Mush it Allows you to apply the CGT concessions for small business if you sell the business.
....along with the property.
http://www.realestate.com.au/property-unitblock-qld-ipswich-117226355?rsf=emailalert-propdetails
for those looking at boarding houses,
this one seems good!
good returns, probably could be better
for those looking at boarding houses,
this one seems good!
good returns, probably could be better
A great story and a great journey, Elliotte. Thanks for sharing.
Sounds close to the money, $2.5 mill. Banks should lend 70% as a going concern. It's a large building 870m, might be a fun weekends painting!
In comparison,Elliotte got a bargain!!!
That said,the effort Elliotte put in,i swear she was a man with balls of steel LOL.
Looking forward to your book Elliotte and or tell all
Cheers Spades.
