Do Students Make Good Tenants?
Advantages And Disadvantages Landlords Should Consider, Before They Rent To A Student
The stigma around landlords letting students still exists, leaving everyone questioning: do students make good tenants? For a student, renting can be significantly challenging. These challenges could be having a poor credit history, the cost to rent increases and even a lack of experience in the property market. Not to mention the far from the ideal reputation that students who rent have. These hurdles result in students finding property search a testing process due to some landlords unwilling to rent to students. Experts even report a staggering seven out of ten UK landlords refuse to rent to students.
Here at Clooper, we have your best interests at heart. We have devised the advantages and disadvantages of letting students, hopefully, refute any misplaced stereotypes and give you a full picture of whether or not students are reliable to rent to.
REPUTATION VS RELIABILITY
Many landlords may not be aware that renting to students can be smooth sailing! Firstly, students are easygoing. The majority of students’ main concerns when selecting a place to rent is that the WiFi is up to speed; paired with accessible transportation nearby. Also, possibly a communal area and local shopping venues, making students essentially low-maintenance tenants. Students tend not to be fussy about the overall aesthetic of the property. Or the type of furniture. So no need to overdo it with the latest furnished designs. As long as the property meets their requirements, stated above, the student will often be happy with the property. However, it is vital to note that students do expect the rental space to be fully furnished.
Here’s are some types of furniture you should have when letting students.
- Washing Machines
- Fridge and Freezer
Secondly, there is a profitable market in renting to students. Since the past year and a half, there has been an estimation of 2.3 million students studying in the UK. With the majority of students renting to private landlords at a whopping 39%. Students predominantly look to rent for a fixed term of 12 months minimum, optimizing the chances of you finding a new tenant after they leave as you will be more prepared with this rough estimate. Thirdly, contrary to ongoing stereotypes, students are responsible. They often make for responsible tenants because they are very self-sufficient and contentious. Not to mention that many students require a living space to study to get their degree, so they can not afford the luxury to become complacent tenants. Therefore making them reliable tenants.
On the contrary, students do have a certain reputation when it comes to renting. Notoriously known for throwing “wild” parties. Not to mention being negligible with property maintenance, due to a lack of interest in prioritizing cleanliness. This could result in landlords spending considerably more money than usual on wear and tear repair. While this can be a risk, there are steps to take to deal with this if it happens, and it is unrewarding for all parties to tar an entire group of young people with the same brush.
The youth of today are what makes us strong and brings us forward in life. We should uplift and support them any chance that we get. Plus, everyone deserves a home. Not housing someone because of a few stereotypes could put vulnerable young people at risk mentally, and even physically. Plus, you could miss out on a potential dream tenant just because they’re a student. Remember to properly screen all tenants and voice your concerns to them to get a better idea of who they are and how they’ll treat their property. This, instead of judging and turning away immediately, will work better for your business and the lives of the young people looking for homes in a crucial period of their life.
ADVANTAGES VS DISADVANTAGES
Renting to students can be financially rewarding for Landlords. Many landlords who rent to students form good relationships with them. There are many advantages to renting to students. Here is a list of the top benefits of letting students:
- Finding tenants is considerably easier, particularly if you are close to a university campus/heart of a town.
- Fantastic market regardless of financial and economical adversities, as students are always in need of a place to rent.
- No long term contract obligations as students rent is fixed 12 month minimum.
- Students are often willing to accept a tenancy, even if the property is not in pristine condition.
- Students tend to be more open to forming a healthy relationship with their landlord due to them being more social and extroverted.
- Guarantors – a lot of students rely on their parents to be guarantors so missing payments should not be a issue.
- Furnishing allowance can also be kept at an average as students are often willing to accept any furniture that comes with the property.
- High yields, due to there being more people living in the house as student tenants tend to flat share so you can charge each room.
Alternatively, there are always disadvantages to renting your property to students. Landlords must be aware of these disadvantages to avoid any surprises in the future. This is a list of the disadvantages of letting to students:
- Students can often not provide credit references mainly because they are coming from a family home so you must depend on the guarantor (usually a parent or guardian).
- Some students may have poor money management skills and a majority of them are dependant on student loans, part-time jobs, and even parents – which can feel like a big gamble letting students.
- Screening can be a worry seeing as you can’t reference or credit check students.
- Maintenance bills tend to be more expensive than those in a regular tenancy.
- Dealing with noise complaints can be a perpetual occurrence from neighbors or the council.
- Wear and tear – relatively, students are more prone to wear and tear than other tenants.
- Depending on the tenancy agreement, you may experience a property that is vacant during the summer.
- Repainting the property during the turnover might be a recurrence due to some student tenants being less careful than others.
- Students tend to choose rental properties that are fully furnished, therefore expect to always be up to date with fresh furniture.
In summary, the advantages and disadvantages can be relatively equal depending on the student. Ultimately as a landlord, you are always taking a risk with whoever you let. That is why preparation is substantial when it comes to renting to students, and understanding the cultural difference in letting youths. Relatively, there will always be students looking for rent so there is a huge guarantee that your business will be perpetually sky-rocketing with new tenants every year. Additionally, renting to a student, you know you’re doing your bit to support the youth of today.
So, do students make good tenants? No one is 100% a good tenant. Overall, every student has a unique way of managing their tenancy, just like any other tenant. In search of what makes a good tenant in general? Click here to learn more.