November 5, 2014

Renting Your Real Estate To Students – The Pros And Cons

So you've decided to rent your property to students! Some people may think you're mad and others may think that you'll make a great return on your investment. Its true that renting to students can be risky but there are also reasons why renting to students is a great idea. Working out what kind of tenants you would like is always a big decision, so we've examined the pros and cons of renting to students to help you out!

Renting Your Real Estate To Students – The Pros And Cons
Pros:

• There is great rental potential in filling your property with students. You can rent by the room and thus get more for your property than you would renting by the house. This will increase your bottom line considerably.

• You will be guaranteed tenants – there are often more students than there are rental properties, especially in university towns or near schools, so your property will never be empty for long.

• You don't need to finish your property to a high standard – doing so will add nothing to the return on your investment, and as long as everything is clean and fully functioning, your tenants will be happy with what they have. Putney tenancy cleaning company can help you with that.

• Parents will often be happy to co-sign a lease, which means the default rate on your property will be very low.

• You will also only need to deal with leases every 12 months or so because of the cycle of the school term. Students will be less likely to drop out before the 12 month period is over, so you'll experience less hassle in that department.

Cons:

• You may only need to get the lease re-signed every year, but you will also often be getting this lease re-signed by a new bunch of students every year. This can mean you have to go through a lot of applications and screening at the beginning of every new school year.

• If a student drops out during the 12 month period, it can often be difficult to find another student to rent the room because the majority of them will be settled in their own places.

• Students aren't always the most careful of tenants – whilst this does depend on the students, it can't be denied that most of the time students are less responsible tenants than other tenants would be.

• As a result of the high turnover and the neglect caused by the students, your property will require more maintenance.

• Students have often never lived in a property without parents before, so will require more attention. You may get called out for the simplest of tasks, such as changing a lightbulb or fixing tripped breakers, so you need to make sure you can spare the time to spend on these things, or that you know someone who can help out when you can't.

Basically, if you're willing to get really involved with your tenants and your property, student rentals can be a great way of earning money. You can get more money renting per room than you can for the full house and you will have a bigger pool of tenants to choose from. This can be perfect as long as you have the time to sort out small problems and are willing to continue to maintain the property.

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