I’m often asked by people about whether a dual occupancy house rents well, and the short answer is yes… very well. Like any property investment, it’s important to ensure that the fundamentals of demand and supply are in your favour. It’s important to focus on areas that don’t have high rental vacancies to start with, and as a good rule of thumb it’s also important to try and keep it under 3%.
Why Dual Occupancy House Rentals Are Good
When we look at packaging up a dual occupancy house investment for people, we always try and make sure that there aren’t too many new investment properties about to hit the rental market. We also try and look for smaller infill land subdivisions in well established areas where possible.
We’ve noticed that the auxiliary side of the dual occupancy house investments are renting exceptionally well, not taking long to find tenants, and achieving high rental yields. The auxiliary side of the dual occupancy house is the smaller side, generally a one or two bedroom. One of the key reasons for this is that in the areas where we package a dual occupancy house, there aren’t that many one and two bedroom properties to rent. In places like the CBD there are hundreds of one and two bedroom apartments available. However, in the key growth locations within the 30km of the CBD where we tend to focus, there aren’t large numbers of apartment or townhouse developments. This means that the one and two bedroom options are very popular for singles and couples and enable them not to have to rent out a house.
- Dual occupancy houses rent well, but you need a good property manager.
I cannot stress enough that it’s very important to have a good property manager. A good property manager can ensure that you achieve a better yield for your dual occupancy house, and also ensures that the regular checks and maintenance are taken care of. We’ll discuss this in more depth in a later blog.
If you’d like more information on a dual occupancy house, please enquire here.
