Pros and Cons To Renting to Students

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Renters Den

Could renting to students be too much trouble for the money? There are certainly more negatives than benefits to renting to this demographics of people, however with careful screening and background checks this can provide a healthy ROI (return on investment). Below is an outline of the advantages and disadvantages to renting your apartment, townhouse, basement or house to students.

PROS:

Renting to a group of students can be a lucrative investment proposition. One option would be to rent the space on a per room basis and advertise it as a furnished unit. For example, a typical two level, four bedroom house in Vancouver, BC can normally rent for $1500 to a family of four. Imagine if you rented each room fully furnished to a student for $800 per with a shared common living and kitchen area. That would yield a total monthly income of $3,200 which is more than double the original monthly income had you rented it to a family. To make the rental unit more appealing to students and compete with school dormitories, you will need to have it fully furnished with a desk, bed, and dresser for each student.

Picking a quiet and studious student can be a benefit as they will be too busy studying at the library or at home to be causing trouble in the house.

CONS:

Students can be rowdy sometimes, throwing crazy keg parties at home especially with a bunch of guys living under the same roof. For many students this can be their first time living on their own away from home. Due to their young age and inexperience living by themselves, they may not take care of your rental property as well as a more mature tenant. Use your judgment for good character and demand a security/damage deposit up front to cover any unforeseeable damage costs in the future. Another concern for renting to students is their ability to pay rent because many are going to school full time and may not be working. This issue can be exemplified when renting to a group of students. Because you are renting to each student individually, you will need to collect rent from them one by one and may require more than one trip or phone call to receive the full amount.

TIPS:

Renting to students or a group of students is not for all landlords. This group will require a bit more attention and work, however the rewards can potentially be a lot greater too. Here are a few tips that will hopefully make the renting experience to students better:

1. Make sure to get the parents of the students to co-sign the rental agreement so at least you can seek damages or unpaid rent from the parents.

2. Consider online banking as a method of payment for this young tech savvy generation. This will ensure prompt and punctual payments.

3. Offer a reliable student to be your representative and head housekeeper at a discounted rental rate. This is similar to the “don” role in University dormitories.

4. Rather than renting to a group of guys, consider a male/female mix to balance things out and keep the house in order.

5. As with all prospective tenants, do diligent background inquiries and reference checks.

6. Renting to a graduate student maybe a wiser choice than an undergraduate student as they tend to be more mature.

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Pros and Cons To Renting to Students

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