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Thinking about renting to students? Student rental properties can offer a completely different experience from renting to families and employed people, with both pros and cons.
The main reasons as to why renting to students is a profitable advantage include the fact that there is a strong consistent demand for student housing. Also, student rental ensures quick turnarounds of tenants due to 12-month leases. Moreover, there is a continuous need for student housing accommodations, and students may have a lower standard than other traditional tenants.
In short, student rental properties provide landlords an opportunity as well as unique risks.
As a landlord you must take into consideration the disadvantages of maintaining a student rental. Properties could experience more wear and tear in comparison to properties you rent to other tenants.
As a result, you are likely to spend more on maintenance. Additionally, most students expect the property to be fully furnished. This means you must take into consideration the extra costs of furnishing and maintenance work.
Student Rental Properties
As a landlord, you may decide that your property is best suited for student tenants. These are some of the key elements that your property will need to attract students
- A minimum of three bedrooms
- A large kitchen and lounge area for communal spaces
- More than one bathroom
- Possibly a garden
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The location is extremely important, as well. Student rental housing must be within a 30-minute walk of the university campus.
Another important factor is furnishing the property. Students expect a fully furnished rental. The term “fully furnished” includes sofas, beds, wardrobes, carpets, curtains, refrigerator-freezer, cooker, outdoor trash bins, and a washing machine.
Another difference landlords experience with student tenants compared to other tenants is their means of finance. Most students have little to no source of income, other than their loans, grants, part-time jobs, and parents. The instability of student finances can be quite unnerving for landlords. However, this is what comes with student tenants. Consider this and it will help to inform your decision as to whether you will be a landlord of a student rental property.
There are many important aspects you need to consider when renting to students. Think about a quiet hours policy, as this will be an incentive for tenants to keep the noise levels to a minimum at certain times. This will help to reduce neighbor and noise complaints.
Another important element is a security deposit. Students are known for parties. Such behavior increases the chances of damage to your student rental property. By having a security deposit in place, you can use the deposit to pay for any damage that may occur. The maximum tenancy deposit is equal to five weeks’ rent. This deposit serves as insurance in the case of damage to the property.
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There are some differences between student tenants’ needs and those of other tenants. Affordability is an important factor for students, as they want to be getting the most they can for their money. Therefore, student housing usually becomes occupied by a group of students who split the monthly rent to keep costs down. They are also more likely to choose a moderately priced property rather than an expensive apartment.
Another aspect is the safety of the location. This is because both the student and their parents need assurances that they are safe in their home. Therefore, well-lit external areas and lower crime rates are desirable for student tenants.
Also, the cleanliness of the rental is of important to students. They don’t want to be living in a space infested with pests and rodents. Students also desire private areas so they can study and have their own space and time. As such, private bedrooms are a necessity, and a communal kitchen and living area is preferred.
Student Rental Properties
You should consider renting to students due to the market itself. The market for renting to students booming, despite uncertainties within the sector. For example, student housing development is up 25% in comparison to last year. This shows the resilience of the sector in uncertain times.
The student rental market saw a bit of a small drop in applications in 2012 after tuition rates rose. Yet the market saw a rise in applications even then, and there are no signs of change in the numbers of student heading to university.
The differences between student tenants and other tenants is considerable. You must prepare ahead of time in order to take on a student rental property. Set your expectations based on the information available.
Finally, remember that this is probably the first time your new tenants have moved away from home. They have a newfound independence they will want to explore. The only certainty with student rentals is they will definitely use the property to its full potential. Therefore, the market also has incredible potential in terms of profits.