Students can be good tenants to have on your property because you’re always sure that you will have tenants and they’re not very demanding people because all they require is proximity to the learning institutions and whether the area is safe. However, renting to students can be very tricky because they generally do not take very good care of premises and the turnover is usually very high. You also have to make sure that you get a parent or an adult to co-sign so that you have someone to follow up with, in case they’re not able to pay the rent.
So what are the disadvantages of renting to students?
They can damage your property.
Students may not have an appreciation for the property, they will not take care of it the way a more mature tenant would. Students are also not the cleanest people and will not bother with maintenance issues like reporting on things that need fixing.
They do not know how to handle money.
It is very possible that a student will not be able to pay you rent on time because they do not know how to manage their money. They also do not know how to prioritize things very well, for example, going out with friends may be more important than paying their bills, unfortunately, one of these bills could be rent and you may find yourself with a vacant house because you had to evict the student.
Students will normally sign short term leases and will only take the accommodation during the school semester. This means that during the holidays you will have a vacant house if the college does not have students during the holiday period.
This can be costly for you because every time the student leaves you have to do repairs to the property, this is why you need to insist on a deposit every time you get a new tenant. You can then use the deposit to fix any damage to the property.
If there are more rentals then there are students, you will find that there is a lot of competition with everyone trying to entice the available students to take up their spaces. The person with the lowest rent will, therefore, get their students, meaning everyone might need to rent at low rates thus low returns for you.
No background history on the students.
You may not have a reference for whether the student is a good tenant or not. It is very hard to screen a student because you really have to depend on what they tell you. This is why it is especially important to get an adult to co-sign in case of any problems.
Students may also not be very good at adhering to the clauses in the lease and enforcing some of them may be difficult for you. They will generally not take kindly to clauses on things like noise because college parties are normal for this age group. Other people may not want to stay around them because of the noise levels and the fact that they can be a bit disruptive.
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