Renting out your property to students can be a highly lucrative business. In cities that have colleges and universities, there will always be a huge demand for student accommodation as most students choose to rent privately with friends in their second and third years.
A three bedroom house can be rented to four students and generate significantly more income this way. Success as a student landlord is fairly easy and very profitable, so read on for our helpful hints.
If you build up a good reputation with students, the positive information about your style as a landlord will travel fast. You want to be known for fixing things quickly, for staying in touch with your tenants and for coming round as soon as you can if there’s a serious problem.
Landlords who refuse to do anything about mildew, stained mattresses, leaking faucets or faulty electrics are not going to be recommended and may well be taken to court for providing sub-standard living conditions.
Communication between you and your tenants is key so everyone knows what’s going on and there’s no confusion when it comes to moving in and moving out dates.
You will be much more successful as a student landlord if your property is in the right location. Student tenants need to be within walking distance or a short bus ride of university and local shops. City centre properties are always popular, as are those in areas that already have sizeable student populations as your tenants will want to be close to their friends.
–Treat Them Like Adults
The majority of students are bright and capable and will respond positively to being treated like adults. For many of them, it will be their first time living in privately rented accommodation, so make the ground rules very clear. As long as students are aware of what you expect from them and what they can expect from you, any problems should be sorted out quickly and easily.
Accidents do happen and things get broken, particularly if your tenants like to party. Make your students aware of the consequences of damage to the property and encourage them to inform you as soon as possible if something goes wrong.
First impressions are crucial when you are preparing your property for rent. Prospective tenants look out for all the signs that can possibly beat down the price or as an excuse to ignore you totally, sometimes without even communicating back about their interest.
Unlike professional renters, student tenants are often a lot more forgiving when it comes to quirky colours or mismatched furnishings. Many students will actually appreciate that purple bathroom and the comfy beanbag chairs in your living room.
As long as the flat is clean and the furnishings are good-quality, there shouldn’t be any complaints says David Philips. It’s your responsibility to give your tenants the best value for their money. Furnish your property in a way that suits your target tenants and you could increase the value of your property.
–Opportunities and pitfalls
Properties close to close colleges and universities are likely to attract a lot more student tenants. If your property has multiple rooms, you are likely to benefit more and by the nature of students, they will move on, so you are not committed to long-term contracts.
Maintenance bills will probably be higher than average, but then you don’t need to provide top-end furnishing. You could have a gap during summer vacations with no tenants. At the extreme, if your student tenants are noisy and misbehaves, you could face penalties from your local council.