Landlords want a tenant with a good credit score who can pay their rental dues on time. Renting to college students can be very profitable if your rental property is located in a college town or near a university campus. Whether you already own a unit within walking distance of academic buildings or you’re looking for a great area to buy your next property, there are some benefits, drawbacks, and risks to consider when renting to college students.
In what case should a landlord deny renting to college students?
There’s no hard and fast rule to not rent a property to college students. However, in some cases, it can be considered discrimination. To avoid any type of stereotyping, landlords come up with constructing houses or hostels in Smart City Lahore, or any other area that is nearby to educational institutes with the intent to rent them to college students. Someone can deny the request for rent in case the property is not equipped to handle the college residents and especially if it caters to the bad reputation of the landlord.
Also if the student does not have specific means of paying rent or any other legal reason is a considerable factor, a landlord can refuse for renting property to college students.
Pros of Renting to College Students
High demand
Housing near a college or university campus is usually in high demand. Because there are new students every year, there is usually a steady demand for rentals, which could lead to fewer vacancies. Professors and staff may also be interested in renting with you.
Competitive market
Rental properties near campus are typically more expensive when compared to the cost of room and board. While you may be able to charge more in a college town than in another, remember to charge appropriately based on comparable units in your area. The rent should be high enough to cover expenses while remaining affordable for college students.
Save money and upgrades
Because most students are looking for a cheap, temporary place to live for a few semesters, they are less likely to seek out popular upgrades that would be a deal breaker for other tenants. Although routine maintenance and necessary renovations are necessary, you won’t have to worry about installing a chic kitchen backsplash and modern light fixtures just to stay competitive and attract tenants. It is in the landlord’s best interest to keep a separate property for renting to students and design it in a way so that it can be maintained easily and becomes a profitable business in the longrun.
Less marketing
Your rental property’s location will be a major selling point. Because college areas typically have abundant amenities that naturally attract college students and other renters, you won’t have to spend as much money on marketing. College towns are typically densely packed with restaurants, shops, bars, and special events, so if you’re close to these attractions, you’re likely to attract a large number of prospective tenants. Students will also tell their friends about good places to live nearby, and word-of-mouth advertising is one of the most effective ways to market a rental property.
Advance rent payment
Some student renters (or their parents and/or family members) will pay rent in advance for a semester or year, so you won’t have to worry about tenants paying late rent. In addition to rent paid by parents and family members, a student renter may use scholarship funds to cover that expense.
Cons of Renting to College Students
No rental history
Students are less likely to have a job, a place to live, or a credit history. It’s also likely that this is their first time renting and living on their own. This makes determining whether a student renter meets standard screening criteria more difficult.
Property damage
Students will likely lack maintenance experience because this will be their first time living independently. They may disregard or postpone addressing a maintenance issue, which could lead to a larger problem or property damage. Furthermore, even the most devout students enjoy college parties. Keep in mind that college parties can be dangerous.
Little retention
Although college students will be in school for a few years, this does not guarantee that they will renew each year. Because their housing plans may change from year to year based on what they can afford and their preferences, students are less likely to sign a lease for more than a year. To save money, a student may want to rent with new roommates or best friends, travel abroad, or live on campus as a resident assistant. It may also be more difficult to fill vacancies during the summer, when many students travel, return home, or begin internships.
It is in the landlord’s best interest to keep a separate property for renting to students and design it in a way so that it can be maintained easily and becomes a profitable business in the longrun.
In Conclusion
renting to college students can be a profitable business venture for landlords, especially in areas near college or university campuses. There are advantages such as high demand, a competitive market, and advance rent payment. However, there are also risks to consider such as no rental history, potential property damage, and little retention. To mitigate these risks, landlords should consider designing a separate property specifically for renting to students, ensuring that it is easy to maintain and profitable in the long run. Discrimination against college students should be avoided, and landlords should screen potential renters carefully to ensure they meet standard screening criteria. Ultimately, landlords should weigh the pros and cons of renting to college students before making a decision that is in their best interests. students will be in school for a few years, this does not guarantee that they will renew each year. Because their housing plans may change from year to year based on what they can afford and their preferences, students are less likely to sign a lease for more than a year. To save money, a student may want to rent with new roommates or best friends, travel abroad, or live on campus as a resident assistant.
