Most landlords rarely rent their high-end luxury apartments to students. This is because students have a bad reputation for binge drinking and throwing house parties that leave both the inside and outside of an apartment unclean or damaged. They are also associated with playing loud music at odd hours, and bad money management practices that lead to unpaid rent.
In fact, over 90% of landlords do not rent their property to students. However, alienating students can cut out a significant portion of renters and reduce the chances of landlords making a lot of profit. Recent statistics show that in the 2018/2019 academic year, over one million international students enrolled in US colleges and universities. Their total contribution to the US economy was over $45 billion.
While some of these students would stay in campus dormitories, a big portion would rather live off-campus in high-end luxury apartments. Besides, landlords who are open-minded or those who look past the misconceptions often find that students can be great tenants. Listed below are more reasons why you should consider renting to international students.
The Student Rental Market Continues to Thrive
With the number of international students increasing every year, the rental market for this demographic is also thriving. Students will always look for excellent off-campus accommodation.
Besides, just as international students would look at specific qualities when seeking help from a paper writer, they also expect unique amenities in a luxurious apartment. And while they can easily choose a proven writer by surfing essaysadvisor blog, it’s not that easy with student apartments. For instance, they would want a rooftop pool, sauna, gym, lounge area, basketball court, state of the art cinema, ensuite bedrooms, and outdoor hot tubs. As developers continue to outdo themselves to provide opulent amenities for students who want to live a more luxurious life, the off-campus rents are also being pushed up.
Since there will always be a demand for housing and you can rest easy knowing that your property is making a good investment. So if you have a property in a university town, you can reap huge rewards from student rentals.
Parents or Guardians That Act as Guarantors
International students from affluent families often have parents that want them to live a comfortable and private life. Such students will have ready cash to pay for high-end luxury apartments that are closer to their learning institution, and their parents will act as guarantors.
From a landlord’s perspective, having a guarantor protects you from the uncapped cost in case of damage. Besides, paying a deposit during the tenancy signing leaves the tenant liable when they leave with a short notice period. Such tenants are a low financial risk, which is advantageous to a landlord.
Offers Multiple Accommodation Options
Most international students share accommodation with their friends. As a result, a landlord can charge more per room for House in Multiple Occupation (HMO) than for a singlet while allowing students to afford luxurious off-campus apartments. Therefore, with a high-end HMO property, you shall generate high returns or more profit with tenants paying on time than you would with a single let.
You will also have less risk of void periods and not getting an income a specific month because it’s unlikely all the tenants will leave at the same time.
Rental Payment Security
Parents often pay for their kid’s accommodation for a full semester or per year. Some go as far as paying the first few months of rent upfront, which improves your cash flow while protecting you from any late payments. Besides, there is no limit on how many monthly advance payments you can ask for, so create a clear tenancy agreement that protects your best interests.
Deposit Acts as Leverage
Students who hope to collect their deposit at the end of their tenancy often do not damage the property. This is especially true when the parent is paying the rent. The student would not want to risk having to explain to the guardian why they had to forfeit the deposit.
Besides, tenants that wish to transfer their deposit into another apartment will also take all the necessary steps to ensure the money is not deducted. Opting to ask for a deposit may be the key to attracting quality student tenants who defy the stereotypes.
Over the past few years, the student housing market has become a big business for developers and landlords. This is thanks to the increase in the number of international students who prefer luxurious and private off-campus housing. Instead of alienating specific renters, landlords with properties near universities have much more to gain by listening to their demographic and seeing student accommodation as a lucrative market.