STUDENT RENTAL INSIGHTS: BENEFITS AND CHALLENGES

Renting property to students can be beneficial, but certain aspects should be considered before taking this step. Here are some advantages and disadvantages of this type of rental:

 

Advantages:

 

High Demand: Property located near universities and colleges often finds its tenants among students.

 

High Profit Potential: Owners can earn more through higher rents for students or by creating multi-unit housing. Studies show that students are willing to pay up to 25% more than other tenants.

 

Disadvantages

 

  • Irresponsible Behavior and Risk of Property Damage: Among the most common problems are students’ unwillingness to take responsibility for damage or careless handling of issues. This can lead to significant repair costs.

Our recommendation is to create a small guide describing these problems and how to address them if they arise. Demand property insurance to reduce damage in case of property damage.

 

  • Imperfect Financial Management: Many students have limited experience in financial management, which can lead to late rent and utility payments. Include a guarantor in the agreement who will pay the bills in case the main tenant fails to do so.

Often, young students find it difficult to connect utilities and ensure timely payment.

 

Our recommendation is to include utilities, internet, and communication in the rent.

 

  • Difficulty In Choosing Tenants: Lack of credit history and recommendations can complicate the process of selecting reliable tenants.

In addition to involving a guarantor, visiting social media pages can help form an impression of the candidate.

 

  • High Turnover: Students often change residences during their studies, which can lead to property vacancies and extra effort in finding new tenants. While student housing is in high demand, efforts should be made to increase the attractiveness of the property, such as location (proximity to educational institutions or popular student areas), high-speed internet, study spaces, furniture, and a washer-dryer.

 

  • Property Vacancy During Breaks: During vacations or breaks, students may be absent, leading to potential property vacancy and loss of income. Enter into a one-year lease agreement with subleasing rights to increase the attractiveness of your property to potential tenants. Also, remember to plan storage spaces for the belongings of departing tenants.

Before deciding to rent property to students, it’s important to consider all these aspects to make a balanced decision.

 

In our opinion, this strategy can be beneficial in several cases: when the rental market begins to stagnate and when the owner offers multi-unit accommodation. Our company is ready to assist you in evaluating your property. Our specialists will be able to develop the most advantageous plan for renting out, so that you can maximize your benefits. The construction department is prepared to carry out repairs or renovations according to your needs, and the rental department will conduct screening of potential tenants. Feel free to contact us for a free consultation.

 

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