PROPERTY FEATURES
Asking price
€ 574.000
Rent P.A.
€ 35.520
Size
105 m2
Yield
6.2 %
OPTION

Sint-Jacobstraat 64, Rotterdam, The Netherlands

Property Description
Turn Key apartment with an area of 105 m² (according to BAG) in Rotterdam Centre. Light & spacious apartment 300m from Erasmus University College......very sought after by students of EUR, R'dam School of Management, Hogeschool Rotterdam and R'dam Business School.

The property has four bedrooms, two bathrooms, a very spacious living room, a dining area, a storage room and two balconies. Room rental permit on the property, for up to five residents. 100% occupancy annually since 2004. 

Regarding the footage & floor plan the following:
  • The video & photos date from before the construction of the (current) 2 bathroom. So it is not shown, but it is there. So the property has 2 bathrooms and 2 toilets. Very spacious for 4 to 5 students. 
  • Carpet in the living room is in Sept replaced for high quality laminate
  • The current rent is to 4 persons, for a basic rent of € 2.960 p.m. Rent to 5 persons is possible, however, the rental permit is based on 5. Also, the metrage allows for a 5th bedroom. See the 2nd floor plan.  Prognosis rental income after construction of 5th bedroom: € 39.000 p.a.
  • Provisions for the construction of the 5th bedroom are already taken, the only thing left is the erection of 2 walls and door frame.

Additional info: 
  • Turn Key: the apt is fully furnished, upholstered and equipped (kitchen, dishwasher, washing machine, vacuum cleaner, etc). Allows for a higher rental rate and minimizes moving-in issues, this is in everyone's best interest.
  • Landlord has deliberately chosen to rent to internationals. Unlike NL tenants, rental yield is maximum and tenant inconvenience minimal. Also, infinite rental stay is prevented, so landlord remains in charge. Demand for this type of housing in Rotterdam is much greater than supply and will remain so in the near future. As a result, concluding one-year leases is in many points very much in the landlord's interest. Inappropriate tenants can be said goodbye to, but pleasant tenants can be offered a new contract. 
  • This rental format is aimed at maximizing rental income per m2 and is in the form of 'flat group rental': a group of fellow students (flatmates) rent the entire apartment and therefore NO rooms. All names are on the lease, everyone signs and everyone is jointly and severally liable. Works extremely well: since 2004 vacancy & loss of rent due to rent arrears is less than 0.1%. The occupancy rate is 99.9%.
  • The lease runs very deliberately for 12 months from August 1 to July 31 and cannot be shortened. If an individual flatmate wishes to move out during the contract period, the others must provide succession. (This is considered a favor rather than an obligation)
  • Rent is based on bare rent (incl. water & internet) but excluding Gas & Electricity. For this, the apartment group has its own supply contract. M2 manages this for them.
  • Seller offers the buyer the services of the current operational manager M2 StudentHousing.nl free of charge. This up to 2 months after purchase. This is to ensure a smooth transition, no disruption in the lease, no nervousness among tenants occurs and the new landlord can quietly come into his role. This offer is a favor. Should not be, may be. Maybe after this period the buyer wants to continue with this manager M2. That is possible, but it is up to the buyer & M2 manager to come to that agreement.
  • Communication with tenants is done through 1 contact person and the rent can be paid monthly from 1 bank account in its entirety if there is a need. There is room for increase at next rent change in August 2022.
  • A 1-year contract is a deliberate choice of landlord and is an offer of strength, not weakness. 
  • Rental permits will no longer be licensed in 2022/2023, and the expectation for after that is very low. So this property is a unique & sound investment. Demand will be unabatedly high in the target market internationals (students & young professionals).
  • Highly sought after location for both sale and rental. Houses for sale in the area are in the market for € 4500 per m2. The m2 price in the asking price (€ 5200) is because of the rental permit & high return. For comparison, renting out a house without a rental permit allows for occupancy of only 2 tenants. This apt brings in double the rent. In addition, the expected increase in value of this property is for now not taken into account, but the buyer should certainly take this into account in the invest decision.


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Sint-Jacobstraat 64
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