If you’ve invested in property and are looking for renters, you might want to think about renting to students.
A bit unsure?
Below are 6 reasons why you should consider student tenants:
1. Consistent and Growing Demand
The percentage of youths choosing to attend university rose to 29.4 percent last year, and has risen every year since 2008. The student market is very active, especially as most students don’t have a choice about where they can live. As such, there will always be demand, making student accommodation a safe investment.
2. Less Renovation Needed
Student renters tend to be happy with basic, clean accommodation (think hostels). They don’t need a new couch or new appliances. They are also unlikely to complain if the property isn’t perfectly maintained; they recognize it’s only temporary, and don’t expect perfection.
3. Make More Money
Instead of letting your property sit unused, renting it out to students can ensure that you’re making some income while you’re away. Student accommodation can make more money, because you can rent out separate rooms, and charge a higher price per room, as opposed to renting the entire property to one family or person.
You can also rent out more rooms in the property as students generally don’t mind using the living room as a bedroom. In addition, at the moment there is a higher demand than supply, meaning rising rents. This past year, average rent rose 4.5% in Spain.
4. Less Commitment
Students tend to move on after a year or two, meaning you aren’t committed to a long-term rent contract. You can rent out your flat for a couple of years and if you decide to sell, you don’t have to worry about complicated long-term rent laws or tenants leaving.
Alternatively, you can also rent out your flat for just the school year and use it yourself in the summer, or rent it out on AirBnB. With student renters, you have more flexibility with your options.
Not in the country? Consider using a property manager who takes a fixed fee per month and deals with all the normal work associated with taking on tenants. You can also consider using online platforms, which allows you to safely rent accommodation to students, entirely online
5. Rent Security
Students may seem like unreliable tenants, but actually, it’s usually the opposite. Most of the time, parents are the ones paying for the apartments, and in fact, there is the possibility that students may pay for a semester or even a year upfront. This is especially true of Erasmus students who tend to have much shorter stays and already know the exact date they will leave.
6. Less Work
Generally, flats are rented to students room by room. This means, that if one flatmate decides to leave, you can choose to let the other tenants find their new flatmate (something they will probably prefer). This means less work interviewing and showing people around the flat. Alternatively, as mentioned above, you can find a property manager who can take care of all the work for you, leaving you free to enjoy the extra income.