If you own a rental property near a college, it’s inevitable that you will have to rent to students. This is not an idea most landlords fancy. However, there are many perks to renting out to students that other tenant groups do not present. You might end up preferring to rent to students as opposed to other tenant bases. Here’s why:
- High Demand
One thing you can count on as a landlord is the high demand of housing around college towns. This is because most colleges and universities don’t offer the student housing for the four years. As such, the students have to venture outside the campus to secure accommodation during the time they can’t settle in college. Considering the fact that the campuses have thousands, and in some, tens of thousands, of students, you can see why the demand for rentals is going to be high. And the good thing is that the demand for rentals is cyclical. In every new school year, a new set of students will be looking for an apartment to live in.
- Higher Rents
When renting out to students, you are in a position to demand a higher rent compared to other rental bases. Why is this? One, students prefer to move in with roommates as opposed to living alone. This means that they split the rent payment. For this reason, you might be able to squeeze a few extra hundred dollars from them than if you were you dealing with the other rental population. The other reason why you might demand a higher rent is because housing is always in great demand. The students who study in learning institutions and can’t secure on-campus housing will have to look for an apartment to live in. Besides, it’s elementary that when demand for something is high, the price goes up.
- Payment by a Third Party
It is quite common for students to have their rent payments made by someone else. In most cases, it’s the student’s parents who meet the rent and will, therefore, serve as the co-signers of the lease. In other cases, students on a financial aid package will have their rent paid as part of their living expenses. Whichever the case, you can be assured of the rent every month. In fact, in some cases, the parents might even pay the rent for the whole semester in advance.
To be continued…