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$1000 For A Bed Per Month!

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http://www.bloomberg.com/news/articles/2015-07-30/wharton-grad-s-got-a-tiny-illegal-solution-to-bay-area-housing

...

As always, what’s hardship for some is profit for others. New Avenue Inc., founded in 2009, sells project-management software for property owners who want to create what it calls accessory dwellings, and can hardly keep up with demand. One client spent about $100,000 to transform his one-car garage in Berkeley, adding French doors, wood floors, a kitchenette and bathroom, and rents it for $850 a month.

That’s relatively cheap. In Los Altos, Brandon Williams crams 14 tenants into a four-bedroom, two-bathroom house -- where monthly rates for a bed start at $1,000.

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He leases the bungalow from a Chinese venture capitalist for about $6,800, which he can more than double when all the beds are occupied. Google interns and low-budget startup entrepreneurs from Russia and Japan sleep like 19th-century sailors in rooms with as many as six bunks, sharing pizza dinners and video games in a living room decorated with photos of tech icons Steve Jobs, Steve Wozniak and Sergei Brin.

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In Los Altos, Brandon Williams, not seen, crams tenants into a four-bedroom, two-bathroom house -- where monthly rates for a bed start at $1,000. Photographer: John Gittelsohn/Bloomberg

“This is scalable,” said Williams, 28, a freelance electrical engineer. “I know a guy who has about 12 of these.”

Across the bay, Iseman collects $1,000 a month for each of the 11 structures parked in the 17,000-square-foot warehouse he rents for $9,100. Tenants include a Facebook Inc. engineer, a SolarCity Corp. programmer and a bicycle messenger.

Seems a little cramped to me!

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people living in expensive squalor is just the good news story only a total barstard would promote.

Wow, profits and smiles all the way.

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So what he's saying, is that one could rent out an empty warehouse in London, and cram it with ikea beds, stick some tables and toilets in there - and we'll be millionaires next year rodders! :wacko:

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Well it's bad news for BTLers as they are being under cut. The warehouse landlords will just shrug and say "we're only providing a needed service".

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It says thanks to the tech boom, people are moving into the San Fransisco area - people still need to go to the office, we won't be working from home (unless we are self employed running our own business).

Edited by 200p

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Tenants include a Facebook Inc. engineer, a SolarCity Corp. programmer and a bicycle messenger.

I'm not sure about the 'bicycle messenger',whatever one of them is but I would say the former 2 wouldn't spend much of their time 'at home' (which strangely makes it even worse/more of a rip off). I would also think that young people with these types of jobs are in a minority, or that the jobs are minority in themselves.

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A bicycle messenger is similar to a motorcycle dispatch rider. They usually operate where lots of lawyer type businesses are, so the journeys are short. One outfit in London was called 'Legal Eagles'. No idea if they're still going.

$1k per month is about £22 per day. London hostels are probably cheaper.

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