RENTING PROPERTY TO STUDENT VS. PROFESSIONALS
It’s an age-old question which has plagued landlords for years – whether you are better off renting property to professionals, or if renting to students will bring you more income?
Let’s take a look at each group in turn, and look at the pros and cons.
Renting to Professionals
- Professionals have a steady income and have budgeted their rent into their living expenses.
- You can run a credit check on professional people to lower the risk of a tenant defaulting on their rent.
- They are more likely to treat your property with the respect it deserves.
- When you rent to professionals it will be on a long term (or rolling contract) basis.
- Busy professionals spend a lot of time at work or out socializing, minimizing wear and tear on your property.
- Young professionals, especially if they pay more in rent, will expect more from their home. With many having their first taste of a job, comfort will be crucial, so you need to consider making decoration chic and modern fully equipped and maintained.
- Lack of accountability in the communal areas.
Renting to professionals is a great strategy for new landlords wanting added security and less deterioration on your property.
Renting to Students
- If your property is in the right location, you have a regular and large group of people who will be willing to pay top dollar.
- You can ask students for a larger security deposit,as long as the yearly rent is over £50,000 – thus safeguarding yourself should the worst happen.
- Being as there isn’t a whole lot of point in running credit reports on people who have yet to build up credit, you can ask for a guarantee instead. This means a parent or responsible adult will sign for them as a guarantor, and you can run the credit report on them instead.
- Renting to students is highly likely to be more time consuming and stressful than renting to a professional (but not always – it’s not so good to generalize). However, historically, you are likely to have to deal with problems such as late-night parties which could even involve police involvement.
- It’s expected that this will be their first time living away from home. This can lead to them not treating your property with as much respect as you would like – hence the need for a larger proportionate deposit.
- If you are renting the property room by room, you may have to make more than one visit to collect rent from each of them.
- The student market is only in term time – they will more than likely return home during the long school holidays.
Bespoke Living’s Opinion
There are a lot more cons in renting to the student market as opposed to the professionals, this is why professionals are my preferred market. However, many investors will not pass over the difference in investment return involved in renting to the higher maintenance, but ultimately more lucrative, student crowd.
Renting to professionals is an ideal strategy for landlords wanting added security and less deterioration on your property.
A ‘Company Let Agreement’ should also be considered for the hands-off inclined landlord. This involves and Ltd Company such as Square Tiger taking control of your property, guaranteeing you a fixed rental rate for the duration of the term. We rent our rooms to busy professionals working locally or relocating to Bristol. Providing them with quality accommodation, to suit their busy lifestyles.