The Rentrapreneur Strategy
How to Get into the Property Market for as Little as $8,000 to $10,000
And enjoy a return of 100 Percent Cash in Your First Year
It’s no secret that property prices have soared over recent years, making it more and more difficult to gather funds for a deposit.
And given property is the vehicle many Australians use to create wealth, it’s left millions watching from the sidelines while those who are already in the property market are thriving financially. That’s why we created the Rentrapreneur Strategy…
|You Pay||$400 / Week Rent|
$250 / Week Rent
$250 / Week Rent
$250 / Week Rent
Total Rent Collected
$500 / Week
$250 / Week
That cash flow will put you in a position of being able to save for a deposit and increase your serviceability. Now some people ask…
Why Would Anyone Rent Their House to Someone Else if They Could Do the Same Strategy Themselves?
There are 6 Reasons
Reason #1: They don’t know how to do it.
And if they did try it without getting the education, it’s highly likely it would be set up illegally.
Reason #2: You are locking in a lease for a long term
The lease we normally ask for is a 1 x 1 x 1 which is a 3 year lease, giving us an option at the end of every year to extend for an additional year.
Many landlords are happy to have the fixed cash flow for the 3 year period because they know there will be no vacancy, and you are locked in to pay the rent every week, which leads us to…
Reason #3: You are likely to look after the property
Once the strategy is explained to them, the landlord or the agent will realise,
you will be looking after the property.
Think about it: for you to be able to attract other people to rent inside the separate area of the rentrapreneur property, you will need a well presented property.
Reason #4: The bond paid by you will be four times the weekly rent
As you will be collecting higher rent than what you’re paying to the landlord, you will also be collecting a security deposit or a bond, depending on which state you are in – which will be 4 to 8 weeks of the equivalent rent you are paying the landlord.
This gives the landlord the security of up to two to three times the normal bond amount that would be sitting over the property.
Reason #5: Insurance by the landlord will usually pay for landlord insurance
Sometimes there are other insurances that sit over the top of the property the landlord must pay.
However because you own the head lease over the rentrapreneur property, technically, you will become the landlord, which means you will need landlord insurance.
Our specific insurer insures against these properties and will be able to save the owner landlord a significant amount of money off their insurance – because you have doubled up on the insurance they already paid.
Reason #6: The landlord just wants to know their property is being looked after
Most real estate agents only inspect every six months, some of them every 3 months, however our approach is to inspect every six weeks.
In the rentrapreneur strategy we have access to the common living areas of the house at any time – and the landlord is therefore quite comfortable knowing we are inside, making sure the property is being looked after by the residents.
What Sort of Properties are Suitable for the Rentrapreneur Strategy?
The setup of the rentrapreneur strategy would generally be a house with three or more people, also known as a HMO. Or it could be rooming accommodation, depending on what state you live in.
For instance, in Western Australia, South Australia, Queensland, Gold Coast, parts of Tasmania and Victoria you will be able to set up rooming accommodation as a 1B compliant building using the rentrapreneur strategy.
Be Careful, You Must Know What You are Doing
The rentrapreneur strategy requires you to understand the policy and legislation around the country.
Don’t neglect this, if you set the property up illegally through ignorance there is the possibility of fines of up to $200,000 and 2 years jail time.
In a recent hand down in Queensland, a repeat offender was fined $250,000 for illegally renting rooms in a house.
Part of the education at Small Is The New Big is to ensure all our clients set their properties up correctly so you are completely protected.
Want to take advantage of the rentrapreneur strategy without the risks, get into the property market for as little as $8,000 – $10,000, and enjoy a return of 100 percent cash in the first year?
Then book in your seat for our upcoming events using one of the links below: