Student Rentals: The Pros & Cons of Renting to Students
Education is one of the essential things in life. People need to read widely and travel to expand their horizons. Apart from domain knowledge in certain subjects, everyone needs to obtain some degree of education to appreciate art or understand civic politics or how the economy works.
Young students often face stigmas in housing because landlords fear they will turn the property into a party home. At the very least, it may be their first time living alone without their parents, and they may lack some practical skills and knowledge that help make older experienced more responsible.
Let’s take a closer look at the pros and cons of renting to students.
Pro: Student Housing Has No Shortage of Available Tenants
If you own an investment property near a university, you don’t need to fear that there could be a short supply of tenants. New crops of students need to find housing every year, so demand is constantly high.
This means reduced vacancies. Professional property managers also run a comprehensive tenant selection process to weed out problematic tenants and find you a reliable student renter who pays on time and will respect your home.
Because homeownership is increasingly too expensive not just for students but professors and staff, owning a unit near a university or college might mean you get a prof or a more mature adult tenant.
Pro: Owning a Home Near a University Helps Increase Rent
Homes near student housing tend to have higher rents for multiple reasons. Neighbourhoods in university or college towns often have hip coffee shops, restaurants, concert venues, and other things that create vibrant streets where people want to spend time. This increased demand helps to increase the price of rents.
Plus, because your investment home will be near these desirable things, there’s less time and money required to advertise the unit. Our rental property management services can help you advertise the property properly, but there’s a lesser need when it’s located near campus.
Pro: Upgrades Are Not a Priority
Of all the types of tenants you could rent to, students are perhaps the least discerning or fussy. Many spend their time in the library or about town, and they will only live there for a few semesters.
Landlords will feel less pressure to invest heavily in the home with upgrades, like stainless steel appliances or fancy backsplashes for the kitchen.
Cons: The Home Could Be Used for Big Parties
Any landlord who has seen the movie Animal House might fear that their investment home could be the location for rowdy parties that result in property damage. The tenant might be a responsible young adult, but sometimes their friends aren’t, or things get out of hand when strangers come to party.
Even if there isn’t a party, perhaps younger people are less experienced in handling the responsibilities of property upkeep and maintenance. Either way, professional property managers insulate landlords from these risks by offering 24/7 support and deep relationships with a Rolodex of professional contractors specializing in every aspect of home repair.
Should something in the property need to get fixed, tenants can tell Property Management Toronto, and we’ll present to the landlord three different options for repairs, each at different price levels. Students don’t need to be capable of fixing the damage themselves — or for that matter, neither does the landlord — they just need to raise the issue to us, and we’ll do all the heavy lifting.
Students are allowed to entertain their friends in their homes, just like any other renter. Our 24/7 maintenance availability will ease your mind and assuage any doubts you have, but you should also speak to your tenants and get a sense of who they are and what they’d like to do in your property.
Our selection process also helps nip property damage concerns in the bud at the outset before there’s time for an issue to arise.
Con: Students Don’t Have a Long Credit History
When you’re renting to an adult who has a long and proven track record of paying their bills and carrying reasonable debts, you can feel more confident that they’ll pay rent on time. University students are too young to have developed years of credit history.
This isn’t their fault! But it helps landlords feel more at ease when a professional property management company has determined they are a reliable tenant after conducting their tenant selection process. If you’re looking for Hamilton property management services because you own a home near McMaster University or another post-secondary school, contact Property Management Toronto today.
Our landlord property management services help you feel more comfortable renting to students by ensuring you get steady rent cheques at the start of every month.
Con: Less Experienced in Rental Matters
Having experienced tenants means they’ll know how standard procedures work because they’ve been there before. Young adults who are probably living on their own for the first time may not be as familiar with the protocol.
Do they know the laws surrounding noise at night? Penalties for late payments or providing landlords with an insufficient amount of time before terminating the lease? It’s possible they don’t.
Property Management Toronto writes leases with six pages of clauses to protect landlords, but we’ll also ensure that the tenant is familiar with their legal obligations. That’s only fair, and the best scenario is one where life proceeds smoothly for both sides.
While it’s best and even necessary to have legal recourse in the event things go south, ideally, your tenants will get caught up to speed quickly and behave according to the terms laid out in the lease.
The rental market includes all kinds of people, and they all have the right to rent a home. Renting to students offers landlords a certain number of perks, but, like anything, there could be potential drawbacks. If you need Mississauga property management to oversee an investment home in the GTA or anywhere else in Toronto, call us today to learn more.