MLB CBD Increasing Rent through car parks

[Intrinsic_Value]

Been a long time since i posted about residential property on this forum.

Anyway a heads up for those that own apartments the CBD (could apply to Sydney just as to Melb).

Car parks in the CBD are becoming increasingly scarce.

To increase my rentals, i have started creating seperate leases for the car park and the apartments.

Just increased my effective rent on the first one by 10% by doing this.
Rent for a 2 bedroom fully furnished has jumped from $580 per week, to $570 per week for the apartment + $65 per week for the car park (seperately let).
Car park on a 6month lease.

Given i paid just $320k for this apartment 4 years ago, this is now showing a total gross return on purchase price of 10.3%.

 

[Aaron_C]

Nice work IV. Just be wary that lots of body corporates have, as part of the section 137 agreement, that car parks only be used by residents of the apartment building, and not non-residents. I know policy applies in my apartment block.

 

[Intrinsic_Value]

Nice work IV. Just be wary that lots of body corporates have, as part of the section 137 agreement, that car parks only be used by residents of the apartment building, and not non-residents. I know policy applies in my apartment block.

no idea about this, its handled by my property manager.
We discuss strategy, he implements the operational issues, thats what i pay him for. He has been my property manager for the last 10 years, more expensive than the average, but like everything, quality costs money.

 

[Intrinsic_Value]

Nice work IV. Just be wary that lots of body corporates have, as part of the section 137 agreement, that car parks only be used by residents of the apartment building, and not non-residents. I know policy applies in my apartment block.

one other thing i will comment on here, boby corporates have lots of rules, proof of application of those rules lies with the body corporate if you know what i mean.

 

[JASA]

I have just started to do this myself with apartments in North Adelaide.

 

[Melbournian]

they do it in most apartment blocks. my place in south melbourne has the 10 carparks being leased out to people who do not reside in the building being ANZ building next door.