- Posted by Member Services
- On September 24, 2021
- 0 Comments
Here are a few things you should think about?
Location is everything. If you are lucky enough to own a rental property already or are considering purchasing a property near a university or college campus this fall, then you have hit the jackpot!
Students need housing and property location and their primary concern.
But how is this beneficial for property managers?
There are multiple advantages of renting to students.
First, renting to students, especially now that multiple classes are back in person, would likely be a steady stream of new students every year, fewer vacancies.
Second: Competitive rents
Property near colleges can yield higher rents. There tends to be a more consistent demand for housing in a college town students are likely to pay competitive rates to be closer to where they need to be.
However, these two things may not alleviate the fears.
Fixing the fears.
Students tend to want to experience variety within their college years and grow to, on average, spend about four to five years in university. During the pandemic, they likely want a less static method of being able to move. We would advise you to keep in mind that college renters aren’t likely to sign leases more extended than a year because they may explore different housing options. Depending on which is most cost-efficient or what their friends/roommates are doing, they may change their housing plans each year or semester, try six-month rentals with discounts for those who renew.
Many property managers may fear the frequent turnover or property damage; what can you do to mitigate risks?
Student renters may not have the experience to take care of a property or know the property manager’s job, or what is acceptable such as having parties or the definition of the destruction of property. You may want to consider adding a cosigner to your lease. Many of the risks of renting to students can be mitigated by accepting a cosigner on the lease so that if something goes wrong, you have the sound mind of knowing someone else will also be responsible and willing to fix it.
Screen all live-in members.
Often, student renters need roommates to make the rent more affordable per person. If you have multiple tenants on the lease, it’s a good idea to run a background check on all applicants living on the property and have each of them sign the lease. Opting not to screen co-applicants could backfire if a co-applicant stop paying rent or moves out.
Since college students may want to travel or return home for the summer, you should address the issue of subletting in the lease.
You also have to understand that dealing with multiple people may come with various issues; this is something to keep in mind if you have numerous independent payees.
Periodic inspections allow you to respond quickly to tenant complaints or questions. It also allows you to keep an eye on your property and make necessary repairs before they become more significant problems
We advise you to conduct move-in inspections with all renters present so the landlord has a clear and documented view of the property’s condition before your tenants move in. That way, you can account for any deductions taken from their security deposit if they damage the property.
During a rental property inspection, landlords can assess the condition of the property with the tenant present to address any issues that would come out of their security deposit. Many landlords document these inspections on paper and have the tenant sign them. You can also conduct drive-by checks to view the property from the outside without giving any notice. You’ll need to provide information before conducting periodic reviews, although many landlords find these inspections helpful.