Many students prefer to stay in rental units instead of college provided hostel facilities, which also are in limited supply. This presents an opportunity for the rental property owners and property management companies not only due to stable year-round rent payments but also due to limited impact due to changing economic variables. However, this does not mean that renting to a student renter is completely risk free!
Are you ready to rent your rental property in Calgary to student tenants? Well, you are in doubt, right? Typically, renting out to students is considered a higher risk proposition by many property owners and even some property management professionals. Therefore they prefer young families, matured couple or working professionals for stability in their tenancy.
So why are student tenants considered as greater risk or liability by rental property owners? Ask any property management company in Calgary, and they will list many. Some of them are;
1. Most of the students who have lived most of their lives with parents may not be ready to live independently as well as responsibly. Therefore, when they are by themselves, often they come short of meeting the expectations that rental property owners may have come to expect mostly from matured couples or working professional.
2. Their carefree lifestyle may result in damaging the rental property fixtures, furniture in the furnished rental property or let neighbors and homeowners feel disrespected. Sometimes many student tenants may also not realize the difference between a hotel stay during vacations and living in a rental apartment during their education days.
3. Often students have late night gathering either for academic or for friendly parties that may turn out to be too noisy or even nuisance for the neighborhood people.
4. Another reason why college students are considered a greater risk or liability is paying rent on time. Usually, many college students pool their money to pay the rental fee. But if anyone of them steps out, then the whole group may suffer. It incorporates the higher risk of cancellation as for rent the property owners depends on multiple people to cover the rental fees.
While renting to students comes with its own set of risks, it does not mean you need to avoid student tenants. Any property management company in Calgary would tell you that there are various benefits of having students as tenants. Some of these are:
1. Student housing is always in high demand. As we said, Calgary is seeing a huge influx of international students. So, there are always hundreds if not thousands of them looking for rental accommodation. Moreover, this demand is cyclical, which means, each new academic year, there is a new set of students looking for accommodation.
2. You may be able to ask a higher rent from students, because they often share the house with other roommates. When they are splitting rent among themselves, they may be able to pay a little more than what an individual might pay. Another reason you may be able to charge them higher rent is that there is always high demand for student housing, because not all students can be accommodated on-campus. Sue to high demand, you can command a higher price.
3. It is much easier to satisfy a student than a professional or a family. They will not seek the fanciest of finishes. They tend to complain less. This makes student tenants a good choice if you don’t want too many maintenance requests over small issues.
4. If you ask a property management company in Calgary about how easy or difficult it is to fill a student housing vacancy, they will tell you it is super easy as long as your property is close to schools or colleges, or easily connected with them.
Property management professional’s tips on giving your rental home to the college students;
1. Ensure that your rental home has clauses to address large gatherings and parties that do not create issues for you or the neighbors. Make sure you include consequences if things do get out of control. If your rental agreement is prepared by a property management professional or a rental management company, they will take care of these clauses in the rental agreement.
2. Make sure you have thorough move -in and move -out breakthroughs to record the condition of the rental property to assess any material damage to the property that may require you to hold portion or full amount of damage deposit as per the legally binding rental agreement.
3. All good rental property management companies will ensure not only the collection of timely rent payment without delays but can also enforce tenancy terms that include additional charges if rent is delayed beyond the stipulated date for the month as well serve tenant notices if there are complaints from other tenants in the building or neighbors.
4. Any good rental property management company in Calgary would offer rent guarantee as part of their property management service as well as tenant replacement should a tenant break the tenancy agreement and property is vacant while a new tenant is placed. This is especially good for landlords who have an assured income from their rental property.
Before you rent out your rental property to prospective student tenant you should consider several aspects to ensure the safety of your rental property as well as timely rent payment and the return on your investment. However, it is difficult for the busy or new property owners to address them as well as an experienced property management company in Calgary or property owner can do.
Should you really need to hire an experienced property rental management company to manage your rental property in Calgary that has a student tenant? Of course you don’t have to if you have the experience and time to manage the property maintenance and tenant affairs on your own. However if you a new rental property owner, are busy professional or do not want the hassle, a reputed property management company in Calgary is probably the best bet.