Benefits of Renting Property to College Students

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Benefits of Renting Property to College Students
Benefits of Renting Property to College Students

If you know the answer to these questions you can make the best real estate investment decisions. Deciding to rent your rental unit to college students can make it profitable if you are interested in investing near college campuses, or college towns. Many landlords have their own doubts about having college students as tenants. The broken flooring, the stain on the carpet, leaky toilets, and such other problems may keep you away from having students as tenants.

Property management companies in Maryland states that having college student renters has its own disadvantages, but it has its own pros too. With higher risks comes great profitability. Knowing the advantages can help you make a wise real estate investment.

Check out some of the benefits of renting property to college students.

5 benefits of renting property to college students

High demand

If you have a property near any college or school, it would be best to rent your property to college students. As long as there are universities and schools, boarding can accommodate only a limited number of students. Having a property nearby could make it work for you. The demand will simply rise. If there are properties near the walking or biking distance to the property are preferred by the students.

In cities and college towns there is a shortage of hostels, the properties available nearby are in continuous and high demand. The students being a concentrated, large pool of potential renters can increase the demand for the property and drive up the rent. This makes property marketing a breeze.

Potential for higher rental income

When you opt for renting your property to college students, you can be benefited by creating the rental income structure differently. If you plan to make your property a rental unit for the students you can charge the rental according to the room rather than simply charging them monthly rent as a whole.

Like for instance, if you have 3 BHK property that would cost a $1000 rent per month. Instead, if you go on to rent rooms to the students and charge $400 a month, you would generate an extra income of $200. This is a reasonable rate for the students while sharing a house but beneficial for you. The landlord may have to ask each of their tenants to sign a lease agreement with rental divided among them. However, you may have to chase the students individually for the rent.

When you are getting the lease signed while renting property to students you can make one lease agreement for the whole house. This what the co-signers fall under numerous liability and joint. Now they are legally liable for the rent even if only one portion is paid.

Read: Best real estate investments for newly retired people

A less demanding attitude of the renters

Renters can be demanding and picky sometimes as they are paying for the home updates. College students are a different story altogether. If you are planning to rent the house to the students, you can be sure they won’t disturb you about the finishing touches or perfect style, or matching colors.

With college student, they only look for convenience and cost. As far as the cost is reasonable and at a convenient distance, the renter is happy about it. The shortcomings of the property are sometimes overlooked by the student tenants. Your regular renters may irritate you with little problems but not college students. They simply don’t have time to get into an argument. Walls that are not freshly painted, carpets with stains, outdated bathroom equipment, deferred maintenance, etc. won’t be minded by your college tenants.

This may be an advantage, but it would be bad to take it for granted. Even though the student renters may not expect the house to be perfect, but the condition should be good. Like for example, the water facility should work uninterrupted, and the electricity problem should not arise.

Rental payment assurance is high

When you are giving your house for rent to the college student one thing is assured, rent payment. Generally, students have parental support and loan. As a landlord, this will benefit you. How?

In the case of the adult tenant who doesn’t have money to pay the rent, you may have to chase after them. This may cost you more money and time than it’s worth. It may go up if you have to file the eviction. This is not the case with the students. They are backed by their parents for financial support or student loan. Most of the parents pay their kids’ rent. The parents have to sign as the co-signers on the lease agreement which gives you 100% assurance of the timely rent payment.

Some of the students with student loans tend to use it towards the housing cost. They try to make the entire lease payment up-front. This provides you with the guaranteed rent for the entire period. In both scenarios, you get extra security for the income generated by the renters, which makes it a potential advantage to rent property to the students.

Appreciation

This point has a lot to do with more with owning property near the university than renting property to college students. One of the benefits of owning rental property and renting it to collage students is long-term appreciation and real estate investors are one on the lookout for such properties. Properties near the college or universities are a safe bet as it increases over time.

Universities are an important contributor towards local economies. Even the government and local economies thrive on such colleges not just the property owners. The value of the property increases depending on the incentives for the businesses nearby, funding projects near the area and so on.

Just like the coin has two parts, renting rental units to students has its own pluses and minuses. To manage your property properly you can hire a property management company in Maryland to make it work for you. Rental property management can make things easier for you.

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