Are you into the rental property business? If not, are you planning to start one? If yes, then you will be surprised to know that there are a lot of options for you to venture into. You can make a successful investment in real estate and enjoy good returns while doing so. While you are still at it let’s discuss whether renting property to college students be a good idea or not. Renting the place to college students can be a profitable investment. Having a property near the college campus or in a college town can benefit you in many ways.
If you have a property near the colleges, then your rental property would do a good business in this field. You may have doubts filling up your mind and would not like to entertain college tenants as their tenants. The stained carpets, broken floors, leaky pipes, and such other problems are quite common but they come with perks as well.
According to property management companies in Baltimore, it is normal to see disadvantages of having college students as the tenants but they come with some benefits too. They say that having these tenants can help you grow in the returns and that too positive one. This deal may come with high risks but that gets accountable due to its profitability. Have a look at some of the advantages of renting the property to college students.
Advantages of Having College Students as Tenants
Having a property near the college or school today is seen as a great benefit by the property management companies. If you have one then you are seriously blessed. Renting the property to college students will help sell your commodity like hotcakes. Even if the college has a boarding facility, many students prefer to stay on their own. The property can be at a walkable or cycling distance and still be in very high demand.
Most of the time hostels near the colleges are limited and so students search for properties to share. If you have a property in such a place then you can bring it to the market for college students. Due to the increase in their demand, the properties in such locality never become vacant thus, giving you an advantage.
Higher Rental income
Opening the rental property for the college students is not beneficial just because of its high demand, but also because they come under completely different rental income structures. Basically, landlords charge students for the rental property according to the rooms. Most students do with just one room, or studio room. They can also manage in a basement room or a penthouse. So, the landlord can charge according to the room. This increases the rental two or three times approximately.
To understand this in a better way, just imagine if a person has 3BHK rental property which he may rent as $1000 per month. When you rent college students, room-wise, the same property at $400 per month, then you can calculate the profit yourself. When students share accommodation, for them this is a feasible rate and on the whole, it is beneficial for you. The landlord can get the lease agreement signed separately by all the renters or to a group.
Less Demanding attitude of the renters
Having a household renter can be demanding and may raise several issues. But having college students is very different. Giving your property to college students will ensure that you won’t have any issues on your plate. They won’t disturb you every single time there is a tap leakage or the wall painting doesn’t match their furniture.
The college students are basically on the lookout for the cost and pay attention to convenience more than the walls’ color. If there are any shortcomings that your regular customers may find faults in, the college students will skip them together. They won’t waste time in useless arguments. They will simply overlook the stained carpets, outdated bathroom accessories, deferred maintenance, etc. Here, it will be advantageous for the landlord but make sure that the conditions are bearable. Certain facilities should be uninterrupted such as electric and water facility.
High Rental Payment
College students are often making timely rental payments. This is an assured thing. There is a simple logic behind it. The students’ capital is either supported by the parents or a student loan. You can take the benefit of this and make it work for you. In case of non-payment from the regular customers, you may have to spend a lot of time and energy running after them. It can become worse with time and sometimes lead to eviction proceedings.
But when you have college students who are backed by their parents financially, you won’t have to worry about rentals. The parents sign the lease agreement as to the co-signers. This gives you 100% assurance and you can stop worrying about timely rental payments. Even if the student has their loan covering their rentals, you won’t have to worry about the rentals. Instead, they will pay the whole lease payment up-front. In such scenario, you can get extra security on the income generated by the college student renters. This is one of the best advantages that keep landlords on the profitable side.
The place near the colleges and schools will always be on the rise. The demand is, no doubt, very high and renters keep coming in. there is hardly any time when the property remains vacant. For such a property it is normal to witness long-term appreciation. The real estate people are always on the lookout for such places and pay a huge amount to get the property for themselves. These locations are safe bets and the value keeps increasing with time.
Colleges and universities are great contributors to local economy. From the eateries to properties, everyone benefits from having college students around. As the incentives and other facilities increase, the value of the property will also increase.
In case you are convinced by this part of the story, you can hire a property management company in Maryland. They will take care of the rental property management and that will make it profitable for you.