Pros And Cons On Renting Out To Students
Buying a property near colleges and universities to rent out to students can deliver stable returns for landlords. However there are some things you need to consider before renting out to them. Here we will discuss the pros and cons of renting out your home to students.
By renting your property to students, you will only need to provide them with basic furnitures, utilities and Wi-fi. Unlike working adults or tenants who are more financially available – their requests for their stay in home may be higher compared to students. You do not have to provide them with super fancy decorations, just as long as their basic needs are provided and they are comfortable in your home because students tend to be less particular. This is an added advantage to you to save up more on the maintenance fees and other miscellaneous fees.
If you happen to own a house near to higher institutions and you want to lessen your mortgage burden, renting out to students might not be a bad idea after all. Many colleges and universities do not or have very limited campus spots to offer to students, especially governmental universities in Malaysia. Some students who live on campus require to take part and attend clubs in their universities in order to not get kicked out from their dorms by their universities. Living on campus too have sets of rules to follow and students may not like that. So remember, there are thousands of students looking for a place to live outside of campus.
Besides, words spread fast among students. If your location is ‘hot’ among students meaning, your location is near to any public transportations, has good restaurants around, has shopping malls with entertainment and grocery shops nearby, then it is considered a golden place for students to live.
If you have a property that students want, they will come knocking at your door in no time. You do not have to worry too much on vacancies as you will not have to spend time looking for tenants. However you will have to go through thoroughly if they are suitable to live in your home – will they be able to pay their rent on time or will they cause problems to you.
Although renting to students sounds promising, the first major challenge faced by landlords in renting out to students is late payment of rent. Money may be tight as most of them do not have a stable source of income like working adults. Prolonged issues like this may force you to evict students in the middle of their semester and it might lead you to more difficulties to find other students as the majority of them already have a place to stay for the year.
You might also face problematic tenants who move out of your house without notifying you. Many of the landlords also complained that their tenants ‘refurbish’ the unit without any permission. Then again, there are immature and irresponsible tenants in our society.
Another thing is that you are not the only landlord around that area. Students will be more selective about which unit they live, they will compare prices and amenities provided. In that case, you will have to lower your rent to attract students to live in your home.
If your tenants are college students, meaning it might be their first time living on their own. They may not have any experience in maintaining your unit and it could cost you as their landlord. You may also find different types of students renting your home. For instance, if they do not uphold clean hygiene, you may have problems with pests or rodents. As a landlord you have to consider details like these.
So there you have it, the pros and cons on renting out to students. To know more about property, feel free to contact us for any queries.