As a landlord, renting a property to students is a rewarding venture; the demand for student accommodation is strong and you can achieve excellent rental returns. However, letting to students doesn’t come without its concerns, especially as students tend to have a reputation of being somewhat irresponsible. However, according to a survey by the broadband and utilities provider Glide, this stereotype couldn’t be further from the truth when it comes to this generation of students.
Payment is probably the first and foremost concern for many landlords. Students do not have a regular income and may not be used to the responsibility of regular payments. However, contrary to popular belief, students are probably one of the most reliable classes of tenant. This is largely down to the fact that most students will come with a guarantor or have financial help from their families, and they have a loan consistently paid to them every term that will cover rent.
These factors make students arguably more dependable than residential tenants because the confirmation of a student loan is more reliable than an employer reference. Someone is less likely to drop out of university than leave their job and, if tenants were to fall into arrears, landlords can demand payments from guarantors.
It’s no secret that students have a reputation for partying a lot and living a care-free lifestyle during university and, of course, this can make landlords worry about damages to their property and complaints from neighbours. However, for this generation of students, the idea that students like to party excessively is a huge misconception.
According to the Glide survey, 82% of students that responded said that they prefer to stay in and watch TV as opposed to going out or throwing house parties. We also need to consider that university is becoming increasingly more expensive, so students have less spending money. In addition, many are having to get part-time jobs which doesn’t leave much time for partying.
One of the more baffling myths about students is that they are perfectly happy to live in sub-standard conditions. This is simply not true; it would be more accurate to say that previous generations of students tolerated poor quality accommodation, but this generation certainly doesn’t. With rent rising rapidly for students and landlords in the spotlight for providing substandard accommodation, student tenants are becoming savvier to what they should expect from their rental properties.
At the very least, students want somewhere clean and comfortable to live in and an increasing number are looking for properties with extra amenities like games rooms and gymnasiums. Landlords should take the time to decorate their property to a high standard or invest in a property within a purpose-built student development where the maintenance is taken care of for them.
It would be foolish for landlords to believe these outdated misconceptions on student tenants when student accommodation is such a lucrative investment to make. Landlords just need to ensure that they take all the normal steps like running a thorough inventory and insisting on guarantors when tenants move in. With all those factors in place, your investment will certainly reap the rewards.
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