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Renting to college students can provide some benefits to property investors. If you have a rental property near a college campus, there will always be money because students are looking for a place to live. As long as there are students, the demand for rentals is high.
But there are also some drawbacks of renting your property to college students. Most college students are first-time renters and probably don’t have a credit history. They can also be unreliable when it comes to taking care of their living quarters.
Well, let’s learn from this blog article what you can expect from renting your property to college students.
Things College Students Want in a Rental Property
The first thing students want in a rental property is its nearness to the campus. They’re looking for living space from where they can bike or walk to class. Also, as long as it’s accessible to public transportation, that will be a good option for them.
It’s also a significant factor for students if the rental property or neighborhood is safe. The windows and doors of the rental property should have durable locks. Sufficient outdoor lighting is also a plus for college students looking for a safe place to live.
For landlords, it’s recommended to know more about the competition in the area. Find out the rental rates offered by other rental properties near you because students will consider affordability as one of the factors in choosing a rental property. Don't forget to set a competitive rate to make your rental property attractive to college students.
An onsite laundry can also entice students to rent your place since it can make their lives more convenient. Another thing to add is Free Wifi, which can be a big help to them for browsing the internet for educational purposes or opening social media to connect with family and friends.
Advantages of Renting to College Students
High Demand
Many college freshmen today live off campus. That means if you have a property close to the campus, you’ll get a high demand for your property. Every school year, new students are coming, which means reduced vacancies.
As a rental property owner, you should study the area so that you can set a competitive rental rate. Always remember that owning a rental property in a college town is all about competition.
Easy Marketing
Another advantage is that you won’t have to work hard on marketing when your rental property is near a college campus. Many colleges will do the marketing for you basically, as they create activities, shops, restaurants, and other features where students hang out.
Moreover, you can get 30% to 40% higher rents when your rental property is in a college town than a similar property further from the campus.
Not Heavy on Upgrades
The good thing about owning a rental property for college students is you can go with a few upgrades. Although fancy upgrades can surely attract more renters, most students won’t mind as long as the place is safe and comfortable to live in. After all, they don’t spend most of the day in your rental property.
Disadvantages of Renting to College Students
Limited Rental or Credit History
Many college students are just carving their way into adulthood. It’s probably their first time renting a property, and their credit history hasn’t yet been established. It can be problematic to landlords as they will make do with limited information during the screening process. You can consider expanding your screening criteria to ensure that you’re accepting qualified renters into your property.
Frequent Turnover
Not all of your renters will stay for four years on your property. Some of them may choose to live on campus or opt for other off-campus dormitories. Others will be influenced by friends or classmates to look for other places to live in according to their personal preferences. But it’s something not to worry much because there will be other freshmen and old students who will fill in the vacancy.
Maintenance Issues and Property Damage
Sometimes college students love to throw parties and make rash life choices that can damage your property. Also, since some renters tend to be less invested to take care of the property, maintenance issues can sometimes be neglected.
It’s recommended to have a text hotline or a maintenance request system where they can communicate to you anytime if there are maintenance issues that need to be addressed.
Takeaway
I hope you’ve learned something from our article. If you’re planning to invest in a rental property for college students, make sure to know the pros and cons of this business endeavor. Consider the proximity of your rental property to the campus, and know the things students look for in a rental property.
