Buy to share, the pros and cons
Although roommates have long been reserved for young students, they have been needed for a few years as the housing solution for all generations. Indeed, in the face of high real estate prices, the lack of available apartments in large cities and the difficulties to access private rental housing (guarantees, bonds, etc.), sharing the amount of rent and expenses is sometimes the only way to lodge. Also for homeowners, buying a property to offer it as a roommate can be wise, provided you are well protected against certain drifts.
The advantages of buying to rent a roommate
Sometimes it can be difficult to get the right price for a large apartment and these properties often remain very long vacant, before finding a taker. You may need to significantly lower the rental price to find a tenant. Offering a roommate property can have several solvent occupants who will be able to divide the rental price between them. You are therefore assured of obtaining the market price . It is estimated that the profitability of shared apartments is 6% on average, a return on investment difficult to obtain through a conventional rental. The payment guarantees also increase if you put in place a solidarity clause between the roommates: if one of them fails , the rest of the rent will be borne by the others . You will not have such security by renting your apartment to one family and you risk losing a significant amount each month. Secondly, roommate rooms usually have very little time left after one of the occupants leaves, and you will often never have to worry about finding a replacement. In fact, roommate groups use word-of-mouth to find another occupant, and prefer to make a "casting" themselves to applicants . So you will not have to worry about posting ads and visiting. If you are concerned about the social consequences of the shortage of cheap and available apartments, buying a property to share it with you is a good way to provide accessible housing for the greatest number of people . Finally, buying a home to share it can open the doors of banks and the ability to negotiate loans at reduced rates . Indeed, the possibility of obtaining a rent at the market price with a reduced vacancy, reassures banks on your ability to cope with a large loan. State facilities can also be granted to the owners, who wish to acquire a good to rent it in colocation, to inquire with the administration.
The disadvantages of buying to rent in colocation
They are less numerous than the benefits, but must nevertheless be taken into account so that the experience does not turn into a nightmare. First of all, when you buy to rent a flat share, you must offer a property with suitable equipment : several bedrooms, one or more bathrooms of large size, a living room and a kitchen of beautiful dimensions. This usually involves significant creation or renovation work before you can put your property on the market. You will therefore have to repay your loan without receiving rent for the duration of the work. In the same way, these large goods may be difficult to resell later because of their high purchase price . As a result, you may end up with housing on your hands and finally having to lower your selling price to attract buyers. Finally, you will have to pay attention when you share a flat to choose your tenants, because a large number of occupants can mean more damage . Also be sure to include a solidarity clause in the lease, so you do not end up paying rent for a departing occupant.
The purchase of a property by an owner to share it offers some definite advantages, provided you are careful about the choice of the apartment and the occupants. To reduce therisk of unpaid bills , beware of collateral and roommate profiles.