If you live outside of a university town, you might not be aware of the incredible potential of student rentals within such towns.
With a guaranteed influx of students each year, investing in a rental property is a great way to generate some income and secure your future. Here are some of the things you need to know before you consider renting to students.
You’ll need to find a large property
Students typically like to live in groups, and you’ll stand your best chance of success by investing in a larger property with many bedrooms. It can be difficult to find large houses to rent but there are some online tools that could help you. Having more bedrooms also means you can boost your income, and it may not cost you as much as you think – especially if you get a property that needs a bit of work. A splash of paint and some good quality flooring could be all you need to create an attractive and desirable home for tenants.
Student properties are cheap to furnish
While some people may prefer to rent an unfurnished property, students typically like to look for those that come with furniture – especially beds, closets and so on. It might seem like it would be costly to furnish a property for students, but you can pick up some simple, basic pieces from places like IKEA at an affordable price. You’ll want to invest in furniture that is strong and neutral, leaving the rest of the decor to your tenants. If your budget is tight, you might also want to check out some of these overlooked places to find affordable furniture.
You’ll need insurance
It’s a good idea for landlords to get some insurance to cover you in case something should go wrong with your property. Think back to your own college days – were you as responsible as you are now? While most students will respect where they live, you never know what accidents might occur. You can even make it a clause in the contract that your tenants get contents insurance as a way to further safeguard your property, and yourself. Being out of pocket due to repairs and recompense isn’t an ideal situation for a landlord, so try to protect yourself against such costs by getting yourself covered.
You might want to consider hiring a cleaner
Having a cleaner is a bit of a luxury for most renters, but it can actually be a great investment for landlords. Knowing that your property is being regularly cleaned offers a lot of reassurance, making it easier to maintain in the long term as well as being something of a perk for prospective renters. You can include the cost of a cleaner in the rental agreement to help make it easier for you to recover the costs.
Be prepared for a high turnover of tenants
Part of the appeal of renting out a student property is that there will always be students looking for somewhere to live. However, the downside is that they’ll be unlikely to stick around past a year or two. Most students begin looking for their next home towards the end of the year, with many looking to start leasing agreements the following fall. You should be prepared for the fact that there might be some months during the year where you won’t be generating a rental income from your property. For this period, you might want to consider turning the property into an Airbnb, and there are some great tips available on how to run a successful Airbnb.
You’ll need to market your property well
To make sure you get tenants for your property, you’ll need to market it well. There are some great tips on what students look for in their student housing, which will serve you well when it comes to creating a listing. There are some great platforms you can market your property with including Rent.com and Apartments.com, or you could choose a local agency who can list the property on your behalf. Making some links within the student community is another good idea and could help make it easier for you to find suitable tenants.
Renting to students is a good way to generate some income on your investment property, particularly for large properties. Student accommodation is in demand in college areas, especially for those looking to enjoy a more grown-up, off-campus experience. With a bit of investment and making the most of the available opportunities, renting to students could be a great way for you to make some additional income from property investment.