Which condo has higher rental value?

[Manhattan]

Considering a purchase between 2 rental properties - one in the NW near the university, the other is downtown within 10 min walk of the core. Prices and size for both properties are about the same. Although the NW property fits 2 bedrooms in the same space as the one bedroom downtown unit. Given these factors which unit would make a better rental unit? My priorities are pretty simple: rental income, vacancy rate, and ease of management. Thanks :thumbsup:

[Twin_Cam_Turbo]

I'd vote for the 2 bedroom near the University because there's always going to be students looking for a place to live near school. I was searching for a place around there with Jordan but I ended up buying a new townhome at Coventry Station, but my plan was to rent my spare room if I lived near the university to at least one student.

[ercchry]

students=trashed unit
DT mature professionals=well kept unit

[BananaFob]

Well... I'll just post this link here again because all the information you need is here. Keep in mind that CMHC is fairly conservative.

http://www.cmhc-schl.gc.ca/odpub/esub/64371/64371_2012_A01.pdf?fr=1357838539778

Zone 1 = Downtown
Zone 3 = Near university

Zone 1's average 1 Bedroom Rent is $1024, vacancy at 0.4%
Zone 3's average 2 Bedroom Rent is $1051, vacancy at 1.8%

I'd say that a one bedroom downtown is going to fetch you more of a stable, mature tenant rather than seasonal students in an area with higher vacancy.

[Manhattan]

Yeah it's definitely a trade off between renting to students vs professionals. I guess my main concern is whether the extra bedroom in the NW/University condo will fetch enough of a premium, if any, over the downtown unit to make it worth dealing with younger/less reliable renters.

[BananaFob]

Originally posted by Manhattan
Yeah it's definitely a trade off between renting to students vs professionals. I guess my main concern is whether the extra bedroom in the NW/University condo will fetch enough of a premium over the downtown unit to make it worth dealing with younger/less reliable renters.

Well according to the stats above, I don't think $30 a month more is worth it lol.

[CapnCrunch]

The University location is recession proof. Bitches love University.

[msommers]

Originally posted by ercchry
students=trashed unit
DT mature professionals=well kept unit

Bingo.

[Manhattan]

Originally posted by BananaFob


Well according to the stats above, I don't think $30 a month more is worth it lol.

Like you said, the CMHC numbers seem on the super conservative side. Also, the University location is prime. It's within a 10 min walk to UofC which should be really good for rental price. Suppose I'll have to be really picky about the renters. Don't have much experience in this area.

[ercchry]

Originally posted by Manhattan


Like you said, the CMHC numbers seem on the super conservative side. Also, the University location is prime. It's within a 10 min walk to UofC which should be really good for rental price. Suppose I'll have to be really picky about the renters. Don't have much experience in this area.

think back to student days...

no money, party, party, party, bitches, party, less money...

so every summer you will have to find new tenants, they will want month to month or a 8 month lease, cause, well chances are they dont want the added expense of holding a rental they dont need for 1/3rd of the year. they have no money, cause pot and booze is expensive! so that rent? yeah, it will be late... again. with such a prime location and two bedrooms (roommate situation) it WILL be party central... parties are fun... when you dont own the place!

condo board will get complaints... you'll get fines... why fucking bother?

[Manhattan]

That's assuming everyone in university parties. I didn't do much partying in my university days because of the lack of funds. Although I'm sure that building will be party central. Ideal renter for that place would be some nerdy foreign student with wealthy parents that'll rent for 4+ years. Or maybe a hot coed student that can't afford rent and has to consider alternative payment options...:rofl:

[HiTempguy1]

Originally posted by ercchry
students=trashed unit
DT mature professionals=well kept unit

This this this.

Also


Zone 3's average 2 Bedroom Rent is $1051

In Edmonton, there is no way you are renting a 2 bedroom apartment/condo for $1050 unless it is a 30+ year old shit hole. Even near NAIT!

Take the downtown. The thing with a rental is that the number one goal is to ALWAYS HAVE SOMEBODY RENTING. One months lost rent is basically money you'll never see again, and it's super hard to rely on college students (8 month leases, who do you rent to in the summer, etc).