Student Rentals during COVID with Jared Henderson

What you’ll learn in just 17 minutes from today’s episode:

Learn how Jared’s investment strategy is keeping a steady cash flow going
Find out about an exit strategy, just in case the student population dries up
Find out where the sweet spot is, in single-family homes, so that it brings in steady cash flow and has manageable results

Resources/Links:

hatleyfunds.com

Summary:

Jared Henderson lives in Montreal and started investing in real estate in 2012. He now focuses on cash-flowing student rentals in Peterborough and only invests in Ontario.

In this episode, Jared shares about the cash flow opportunities in student rentals versus single-family rentals. The odds of a vacancy in student rental property are slim compared to a single-family rental property.

Topics Covered:

01:06 – What his primary investment strategy
01:41 – Why choose a small city in Ontario for his investments and not in his own city
04:50 – Why he continues to invest in Peterborough and not in Montreal
07:13 – Are his properties pre-existing student rentals or single-family homes converted as student rentals
09:04 – What is a sweet spot in terms of the number of rooms for cashflows
09:53 – How is his student rental set-up – co-ed or all-male or all-female
10:32 – What good property management can do with cleanliness and orderliness
11:41 – How long is the tenancy for student rentals
13:11 – Is he catering to international students and how advantageous is it in having them over local students
14:32 – How does he raise capital to buy properties
15:20 – How much does he get having the place as student rental versus renting it as a family home
16:43 – The advantage of having student rentals versus renting out the place as a family home

Key Takeaways:

“What really attracted me to the student rental model is that I have multiple leases in these houses. I would never be without any revenue altogether. Worst case scenario is these days I’m perhaps half full or four out of six students are there. I’m always receiving a steady flow of cash which provides my business stability.” – Jared Henderson

“The reason why I continued investing in southern Ontario instead of Montreal is because of the strong fundamentals in the GTA, through transportation development, job formation, and migration.” – Jared Henderson

“If the student population dries up. And there’s too much competition with investors like myself or concentrating on cash flow and filling up all these rooms, I can either do a single-family by just converting it to a nice new home, or I can duplex the building.” – Jared Henderson

“Six-beds is a sweet spot in terms of good cash flow and manageable results.” – Jared Henderson

“I aim for a year-long lease. Most of my students are at Fleming College where you’re having certain terms to be 1, 2, 3 years versus typical University, which would be four years. So, with these shorter periods of time, I do have a little bit more turnover.” – Jared Henderson

“I’ve had success filling out my homes in the summer they would be slightly less occupied. But we’re talking four to five rooms complete versus six over the summer.” – Jared Henderson

Connect with Jared Henderson:

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