Maybe you own a rental property close to one of the many campuses here in Austin, Texas or you’re considering purchasing a property that could be considered student housing. You might be wondering to yourself:
Are students good tenants?
As a landlord, you always want the best tenant possible. Someone who pays rent on time will take care of your home like it’s their own and many more factors. In this post, we’ll go over the pros and cons of leasing your rental property to students!
Pros of Renting to Students
Increased Rent - Owning campus properties that consistently become occupied by tenants brings one great benefit - higher rent! The demand for your campus rental property lives outside of a typical rental home in Austin, Texas, and with that demand comes more earnings every month for you!
According to Yardi’s data, across the nation, campus properties are listed higher than the average home in the same area 67% of the time. Owning a rental property close to campus here in Austin, Texas can be a great way to increase your returns as a landlord!
No Tenant Shortage - Outside of the booming rental market and a plethora of tenants looking for homes currently, campus properties are some of the quickest leased homes once they hit the market. Though you may have lost a tenant due to graduation or school transfer, there are always more people enrolling into the school which brings more potential tenants to your home every year.
Low Maintenance - No, we don’t mean that you’ll be doing less maintenance on your home. You’ll be doing the same amount, if not more, honestly. Here we are talking about standards and the expectations your tenants will have while living in your home. As a landlord, you are less likely to hear from your tenants about smaller, non-emergency issues than you are from a family living in a rental home.
This could save you a phone call at 3 am for something small like a power outage you have no control over.
Cons of Renting Your Austin, TX Home to Students
Lack of History - Renting to students can be tough. They could be 18 years old and without any credit history. It’s a regular occurrence for students to have co-signers or guarantors for their lease so don’t be shy to require this for approval on your campus property should any applicants not have sufficient history.
More Risk Exposure - It goes without saying that supplying campus rentals to students exposes owners to risk. This could be having tenants who throw large parties or any other college-associated activity. These risks aren’t tied to students alone, you just have more of a chance of your home becoming a popular hangout spot when it’s a campus property.
Less Knowledgeable of Lease Terms - At a younger age, you’re less likely to read the fine print and just proceed with signing. This can cause problems as some may not take the time to fully understand their lease and the terms put forth by it. Tenants may disregard the terms of their lease and result in your receiving complaints about noise, etc. If taken too far this can give you issues down the road, but not the majority of the time.
Essentially, like all tenants, students have their pros and cons for living in your property and aren’t much different than any other tenant outside of a few specific factors.
Should you consider investing in campus properties and become a landlord for rental properties close to campus? The answer is really up to you and the goals you have in mind for your real estate investments. Campus housing has been a successful venture for many landlords in the past and could be for you as well!
Questions about renting your home to students or looking for help with your campus properties? Contact our Austin property management company today to learn more about the services we offer landlords in Austin, Texas.