Landlords have the option to choose whichever tenants they feel would be the best fit to live in their property. And for properties near a school, college students are often a large portion of applicants. If landlords use a free tenant screening software and their best judgment, they can get some great student tenants. But sometimes, it doesn’t work out too well. So what are the pros and cons of renting to college students?
Pros of renting to college students
One of the biggest benefits of having a rental property near a college is that there’s always a high demand for housing. On-campus housing often fills up quickly, leaving students to look elsewhere. A high number of students looking for off-campus housing can mean landlords receive several applications and have few vacancies. Having a consistent and reliable demand for housing is something all property owners long for.
Another big benefit of renting to college students is that they don’t often have high standards for living. While they obviously need a safe place to live, they most likely aren’t looking for marble floors or high-end appliances. This means landlords don’t have to pour a ton of money into their property to attract potential tenants. College students are looking to live somewhere that offers a functional living space at a reasonable price, not a five-star property. So if a property is a little outdated, it’s nothing to worry about.
Lastly, rental properties that accept college students can see a higher profit. Student housing can often see more income than other housing options because students will pay higher amounts to avoid having to pay the drastically higher price for on-campus housing. A larger rental yield is a great benefit of renting to college students. Not only do landlords not have to put a lot of money into the property, but they’ll have a high and steady cash flow.
Cons of renting to college students
While renting to college students has many upsides, a few downsides and risks exist. One of the main things landlords have to be concerned about when renting to college students is the risk of property damage. College kids can get rambunctious and may fail to do basic upkeep to the house. Additionally, noise complaints are a common concern. But if landlords make their expectations clear, they should luck out with respectful tenants.
Another con of renting to college students could be the turnover rate. While there is certainly a high demand for housing near colleges, the turnover rate is often high when renting to college students. These tenants may be around for anywhere from one semester to the full four years, but there’s no guarantee. College students don’t usually live in the same housing for their full college experience, so landlords may find themselves continually filling vacancies. Offering the right kind of lease, such as a short-term lease or a discounted summer rate, could potentially minimize the risk of vacancies. And it’s always important for landlords to remember that when one tenant leaves, other college students in need of housing will likely fill that vacancy.
All in all, there are several pros and cons of renting housing to college students and ultimately, it’s up to landlords to decide whether they’re prepared to face the risks. While there is a high demand and the potential for a steady income, there is the risk of property damage and frequent vacancies. But if landlords screen their tenants properly and make their expectations clear, renting to college students can be a great opportunity.