Renting to Students
There is a perception that renting out to students will cause headaches and many Landlords steer clear of it, but the reality is there are thousands of local and international students in the market for rental properties particularly around the start of the University year, and they are an excellent source of income if managed properly.
The two key concerns when renting to students is their capacity to pay rent and keep the property clean and in a well-cared for condition. Concerns regarding capacity to pay rent can be overcome by ensuring that parents act as guarantors on the Tenancy Agreement and you may consider suggesting that the parents enlist a cleaning company to do a regular clean to protect their rental bond.
To be attractive to students, you need to ensure that your property is in commutable distance to a University or College campus and close to public transport.
One decision to make, depending on the size of the property, and your legislation, is whether to rent out individual rooms on separate tenancies or allow a group of friends on a shared tenancy. Either way, renting out a property to a number of tenants may help you achieve a higher rent than renting to a couple or family. If you are looking at a few students, the property should have a minimum of 3 bedrooms with large communal living spaces and a separate toilet/bathroom.
Enlisting the help of a professional property manager is key to protecting your property in these situations, from undertaking Tenant checks through to the signing of the Tenancy Agreement, Entry Condition Report, regular Routine Inspections and finally, the Exit Condition Report. A Property Manager will be able to keep the Tenancy on track and nip any issues in the bud before they have the potential to cause serious harm.
If you want to attract good students – think about what you could include in the property. Internet connection is crucial, and most students will not have white goods or furnishings. Some of the key items you may like to consider including in the rent are:
- Washing machine and Dryer
- Fridge/Freezer
- Microwave
- Wardrobes
- Desk and Chair
- Lounge furniture
Always ensure that a full inventory is undertaken that also notes serial numbers and provides photographic evidence of the condition of any goods or items that form part of the Tenancy.
Many Universities actively work with Landlords and local Real Estate Agencies to secure suitable premises and many employ a dedicated housing officer to assist the students. If you are having trouble renting out your property in the non-student market – this may be a helpful resource.
As with all Tenancies, ensuring that you have the correct type and level of Landlord Insurance is highly recommended and will safeguard you in the event that the Tenants don’t do the right thing.
