Are you looking for a source of passive income? If you have a substantial sum to invest, then you have a lot of options. One of them is to build a rental property such as a boarding house design and construction. If you do this right, then you can be set for life. You will have a monthly cash flow that can add to your income or even become your personal pension plan. This can cost a good deal of money, however, so you should plan it carefully. The following factors should be considered:
Location
Just like any piece of property, the biggest consideration for boarding houses is their location. If you are yet to buy land, then make sure that you pick something that is close to schools, offices, and other public places. These are where the jobs are. These are where people want to live because of their proximity to the vital areas. You are more likely to have full occupancy if you adhere to this principle. If you already have a lot, then consider its suitability given this criteria.
Capacity
You need to consider how many boarders you can accept in the boarding house. What are your financial goals for this investment? How much is your budget? These will determine how big you need to build. Rooms don’t have to be that big but you can make it spacious and charge higher rent. Know your target market to determine whether they prefer space or low rents. This house needs to have a common area and ample toilets for the residents. The kitchen should be big enough for them.
Safety
You cannot compromise on adherence to building codes and safety regulations. Doing so will put you in danger of closure. You will also endanger the lives of your tenants. For example, they should have an escape route in case of fire to avoid getting trapped in a raging inferno. You might also want to invest in security cameras and other equipment that will guard the property against thieves and vandals.
ROI
This is a business so you need to make decisions that make financial sense. This means allotting a budget that fits your capabilities and having goals that are realistic. If you were to implement your current plan, then how long would it take for you to break even? What kind of return on investment are you after? Have you considered the ongoing repairs and maintenance for the house?
Plan the boarding house design and construction well and enjoy the fruits of your investment.