Pros of renting to students
- Students tend to be more forgiving when it comes to furnishings and provided appliances, as well as of interior décor. They may be less picky about fresh paint or attractive flooring—they’re more interested in price.
- You can ask for students’ parents to act as guarantors, giving you additional coverage in the event that they are unable to pay their rent on time.
- You may be able to make more per property by renting to more tenants than non-student renters would prefer. Students are accustomed to group housing and divided leases.
Cons of renting to students
- Students are harder on their flats, which can mean higher maintenance costs. Lifestyle differences as well as the shorter terms of their leases may influence their willingness or capability to be careful with furnishings, décor, and appliances.
- While the demand is consistent from year to year, it’s not always consistent year round. Holidays and gaps between semesters can leave you high and dry, at least temporarily. Bear in mind what this may mean if you have un-occupancy terms in your insurance policy.
- Typically, you will be able to offer lower cost options than local universities. However, there are other large student property providers and occasionally universities that may build accommodations intended for students that could be competitive.
- Noisy parties and late nights could lead to problems with the local council, and landlords are ultimately responsible for penalties in many places.
Preparation
If you do decide to let to students, you’ll want to do some preparation. Prepare information packets for new tenants that include information about the property, their responsibilities regarding it, and local transportation and amenities. You may also include student specific rules—no candles, no climbing on the roof, etc.
Ask for references, and actually follow up on them, particularly past landlords.
Prepare a detailed inventory of the flat prior to letting it. Include documentation of all present appliances and their conditions, any previous damage, and current decorations. Take photographs and a video of the property before students move in. Give them an opportunity to tell you of any damage or problems they note after a walkthrough.
Letting to students can be very profitable, but it does require more preparation than renting to professionals, and an understanding of students’ differing needs and lifestyles.
Tags: landlord tips, renting to students, letting to students, student living