Pros and Cons of Renting to Students
Pros and Cons of Renting to Students:
Homeowners can make money by renting to students.
However, it is important for your rental to be close to a college campus.
In this regard, renting to students has its pros and cons.
Therefore, learn about these pros and cons before renting to students.
Top 10 things students consider in a rental
- Closeness to a college campus: The most important consideration is closeness to campus. A student wants a rental that is not far from the college campus.
- Affordability: The cost of rental is another important consideration. Students may not be financially buoyant. However, they need somewhere to stay and enjoy good times with friends. Generally, most of them will go for moderately priced apartments. Furthermore, they have roommates to reduce rental costs.
- Closeness to amenities: Proximity to town is also important to most students. They prefer rentals that are close to shopping and entertainment centres.
- Access to public transportation system: Lots of college students do not own cars. Therefore, it is important for them to use public transport. The transport system can be taxis, buses, and trains.
- Safety: Safety is very paramount to students and their parents. Hence, they prefer areas with low crime rates. Also, they like homes with well-lit exteriors. If the unit has security equipment, college students will desire such a place.
- Laundry: On-site laundry is usually another desirable feature for most students.
- Private area: College students need to study, sleep, and cook without disturbances. Resultantly, they want apartments with private areas.
- Updates: Updates include newly tiled bathroom and home appliances. Many students are looking for apartments with such updates.
- Neighbours: A few students prefer homes where they can relate with other college students. Others may prefer living with people who are not college students. Whatever the case, having neighbours around is desirable.
- Cleanliness: Generally, students like units that are clean and habitable. Similarly, they like homes that do not harbour rodents and other pests.
Pros of renting to students
1. Demand is usually high
Several colleges and universities offer limited housing to students.
In other words, housing is not available for all four years of staying in school.
Consequently, students have to live off-campus at a time.
Typically, a college or university has thousands of students.
Therefore, rentals in such areas will need to cater for lots of students.
2. Rents are higher
Do you have a rental property in a student area?
If yes, it is possible for you to charge a higher rent.
Two reasons usually make this possible.
Foremost, students usually share apartments.
Therefore, you may charge a little more than you would if renting to non-students.
Another reason for charging higher is the regular high demand for rentals.
3. Third party payment is possible
Lots of college students are not paying their rents themselves.
More often than not, their parents are responsible for rent payments.
Sometimes, the financial aid package for the students may take care of the rents.
The parents or financial aid may find it difficult to deal with monthly payment.
As a result, full semester rent may be paid in such cases.
4. Referrals may help you deal with vacancies
If your rental is desirable for students, vacancies can never a problem.
Students usually communicate with each other seamlessly.
Therefore, if your rental is desirable, many students will know about it quickly.
Resultantly, you may have students vying to rent your unit before current renters leave.
Nevertheless, you need a thorough screening process in such a case.
This is to ensure that you do not rent out your property to troublesome students.
5. Students are usually satisfied with less
Basically, most students only need a habitable and safe unit to stay.
Usually, they are not finding apartments with top-notch finishes.
Also, many of them do not complain often like other tenants.
This is because they are mainly concerned about their academics and social lives.
So, having them in your rentals may be a great blessing.
Cons of renting to students
1. They are inexperienced with property maintenance
Most college students are young individuals.
In fact, most of them are living away from their parents for the first time.
Therefore, they are not usually experienced when it comes to property maintenance.
Dirty students may cause pest infestations in your rental.
Others may overlook and not report maintenance issues.
Resultantly, the minor issues may become something big that requires lots of money to repair.
Moreover, they may be negligent of many repairs in your property.
2. They are inexperienced with the management of funds
Living alone for the first time may affect their money management skills.
Many students spend money on unnecessary things.
Consequently, they may have issues with paying rent.
So, non-payment of rent may lead to eviction from time to time.
3. There may be competition
Most landlords know the high demand for rentals by students.
Therefore, neighbourhoods with a college campus often have many rentals.
Resultantly, there may be more rentals that the students who need them.
To cope, you may need to reduce your rent to attract student tenants.
4. You may need to deal with constant turnover
Students stay in the college campus for a limited time.
Therefore, yearly turnover is possible in student-dominated areas.
Factually, you need to offer them short-term leases.
So, you may have to repair your units and get new renters every year.
5. Students can breach the lease
Lots of students do not have regards for authorities and clauses.
Hence, they may violate your lease terms.
Perhaps you have any rules against hosting parties, loud music, and so on.
Or there is a number of people that should stay in the unit.
You can expect some of the students to violate these rules.
6. Students may have no employment or rental history
Conventionally, screening of renters involves checking employment or rental history.
Nevertheless, most students have never worked or rented before.
So, there is nothing to verify.
Also, their parents may be the co-signer.
Thus, the parents have to pay rent if the students do not pay.
7. Summer vacancies
Generally, summer is the time when students go home.
Hence, you may have vacancies during the summer months.
However, you can deal with this by offering a yearly lease.
Hence, the summer holiday will not affect your rent.
At Reneza, we provide assistance to landlords and renters.
Contact us today for consultation on how we can help you.