As the back-to-school season kicks off, property managers and landlords find themselves facing a unique opportunity to rent to college students. Just like with any demographic, renting to college students comes with its pros and cons. It’s important to weigh the benefits and drawbacks before making a decision. This blog will explore various things to consider when renting to college students and how property management software can ensure a smooth and easy leasing process.
The Pros:
- High demand: With the school year approaching quickly, there is high demand for rentals. Housing located near colleges and universities experience a surge in demand at the beginning of every school year. This is especially true for college towns, and the closer your property is to the school, the more demand it faces (Enrile, 2012).
- Higher rents and reliable income: According to research done in the US, a property close to a campus can yield 30 to 40% more in rent (Collatz, 2018). As well, many students receive financial aid or support from their families which ensures timely rent payments. This gives landlords something to fall back on and provides them with a level of security in terms of consistent rental income. Another thing to acknowledge is that college students typically rent in groups, so there are multiple tenants. This often translates to higher rents as well as you can rent by room.
- It’s temporary: College semesters often run for 8-9 months with most students returning home for the summer. This gives landlords the opportunity to adjust rental terms and rates more frequently which can be advantageous to some.
- Fewer upgrades necessary: Students are known to be more flexible when it comes to their living experience and furnishings. Obviously they would like a livable space with basic amenities, but they aren’t looking for anything fancy which means costly upgrades won’t be all that common (Vijayakumar, 2022).
- Possibility of becoming long-term tenants: If the students have a good living experience they may consider renting the unit even after college. Some college students end up staying in the city they went to, giving you the opportunity to rent to them long-term, especially in a bustling city like Toronto.
The Cons:
- Turnover Frequency: Some college towns are very transient, with students frequently moving in and out due to semester breaks and graduation. This can lead to more time looking for new tenants and more administrative work.
- Maintenance wear and tear: Having multiple tenants can lead to more wear and tear in the property. This can lead to more time and money spent on upkeep.
- Noise concerns and violations: Student tenants may not abide by certain terms such as noise levels or smoking rules. They may bring friends over and host parties that can lead to damages (Vijayakumar, 2022).
How Payquad can help: Using Payquad can ease the process of renting to college students significantly.
- Efficient application process: Using Payquad you can manage all the lease applications in one spot and filter through them easily. This simplifies the process and ensures that all the necessary information is given over.
- Comprehensive screening: It is important to make sure you are renting to tenants that will respect your property and rules. Screening minimizes the risk of renting to unreliable tenants. On Payquad, you can run credit checks and require references allowing you to properly screen prospects.
- Online rent payments: Most students are computer savvy and will appreciate having an online option to manage their rent payments. This will allow them to make sure their rent is always paid on time and they can even create automatic payments to ensure this.
- Communication: Effective communication is key with all tenants. You can use post announcements for your tenants to see or message them privately if you ever need to reach them.
- Maintenance requests: Since having more tenants can lead to more maintenance, tenants can easily submit their maintenance requests online and managers can then assign these tasks to the appropriate vendor.
Overall, renting to college students has its fair share of pros and cons. One thing that’s for sure is that Payquad can make it a whole lot easier.
References:
Collatz, A. (2018, February 27). Pros and cons of renting to college students. SmartMove. https://www.mysmartmove.com/SmartMove/blog/pros-cons-renting-to-college-students.page
Enrile, J. (2012, January 13). Renting a room in Ontario’s University Towns. The Queen’s Journal. https://www.queensjournal.ca/renting-a-room-in-ontarios-university-towns/
Vijayakumar, M. (2022, March 1). Pros and cons of renting to students. TenantCube. https://www.tenantcube.com/blog/pros-and-cons-of-student-rentals
