Are you considering investing in a condo in order to rent it out? Turning a spare room or the entire unit into a rental space can be a great opportunity to increase your income. And if you live close to a college or university campus, you can make even more money by renting it out to students. Contrary to popular belief, students make excellent tenants – that is if you find the right one, of course. Renting to a respectful student who is busy juggling their school work, part-time jobs and social life, usually means that they’ll be spending a good amount of time out and about – putting less wear and tear on your property. But those aren’t the only advantages! Read on to learn about all the benefits of renting to a student.
Higher Profit Margins
Neighbourhoods that are located close to post-secondary institutions tend to be in higher demand. And since most institutions do not have the capabilities to board all the students onsite, you can easily charge comparable rates by renting out your investment property offsite. To your benefit, student competition is fierce, which creates higher than average rental rates in “student-friendly” neighbourhoods.
Parents Cover Costs
When you rent to a student, it’s highly likely that their parents will be covering most – if not all – of the rental payments. This is great news for you because it gives you the opportunity to add their parents onto the legally binding contracts as guarantors and co-signers. This can provide you with an extra layer of protection if the tenant is unable to pay their rent on time or at all.
Flexible Payment Options
Most on-campus housing options require that students pay for the entire semester up front. Because students are familiar with this option, you may also be able to get them to pay each semester in advance. This can save you the hassle of having to track down late payments or worry that they might leave earlier than planned.
Students Are Less Fussy
Students are well aware of their “bad rep” in the rental market, so they’re often more reserved when it comes to making complaints compared to other tenants. They’re also less fussy when it comes to roommates and living close to others after spending time boarding on campus. So if you’re looking for a tenant that won’t call you over small concerns day and night, a student is your best bet.
The average student will attend school for three to four years, with post-graduate students averaging up to eight. So unless you rent to an exchange student, most students will be interested in finding a long-term rental that they can call home. Historical data also shows that if your place is in a good located, well-maintained, and affordable, students will stay as long as they possibly can. That means you won’t have to deal with finding a new tenant every couple of months, which can save you a lot of time and energy.
Save On Advertising Costs
Finding a new tenant takes a significant amount of time and money. To attract the right person, you need to spend hours on end uploading your rental details to different rental sites. However, university students tend to look in one place for rentals – the university room and board site. In Edmonton, the university sites direct students to www.rentingspaces.ca/ to find offsite boarding availability. So all you need to do is post there and you’ll have a number of inquiries in a matter of days to sort through.
Better Tenant Options
Finding quality student housing is hard to find. Most offsite options are in pretty rough shape because most tenants expect the students to trash the place. However, not all students are partiers. There are a number of respectable and well-behaved students out there who are looking for a nice space to call home while they’re in school. You’ll even find that many students are young professionals and adults engaging in continuing education that need a decent place to rent. So if you have a newer and attractive unit with lots of amenities onsite, you’re likely to have a long list of potential renters to sift through. That means you can carefully select who you want to rent to and you can even charge a higher rate to those who are willing to pay more for a quality space.
As you can see, there are a number of great benefits of renting to a student. So if you’ve been contemplating this decision, don’t be afraid to try it! Contact our team to learn how CX Lofts & Townhomes can help you benefit from renting to a student with an investment property.