Students VS Young Professionals
Posted on 3rd May 2018 at 15:24
Do you have a property that is ready to rent but you’re unsure who you want to rent too? Making the decision of whether you want to rent to students or professionals can often be quite a difficult decision to make so here are some pros and cons …
Pros of Renting to Students:
1. The majority of students will want to house with their friends. They may fall out every now and then, but it is unlikely that there’ll be a major disturbance to living arrangements.
2. If the whole property is rented to University or College students, then you do not have to pay council tax.
3. For the majority of students, this will be their first time living away from home and are excited of the fact they will have more freedom and so they’re usually happy with ‘cheap and cheerful’ and don’t expect too much.
Pros of Renting to Young Professionals:
1. Landlords can demand more rent from young professionals and an HMO strategy can have excellent yields. Young professionals are still attracted to the idea of communal living and are most likely still too young to afford their own property or rent on a house, and so HMOs are still successful.
2. Young professionals often have greater respect and a working day which in turn leads to less wear and tear to any furniture provided.
3. Young professionals often have a bigger budget and so they’re ore likely to go out to a bar/club than to have parties in the rented accommodation, which leads to less wear and tear and less complaints from neighbours.
Cons of Renting to Students:
1. The vacant letting period is swift and so if you miss it, you may find your property unoccupied for a long time.
2. If your tenants are loud or partying, you may have to deal with both informal and formal complaints from neighbours.
3. Your typical tenant referencing might need to be revaluated when you consider renting to students. Even if a student works part-time, their income is more than likely to be well below your minimum requirements. First time renters will not have landlord references to check and you could be dealing with a young student who hasn’t had the opportunity to build their credit. Without verifiable income, references or credit history it can be hard to determine if your student applicant will be a responsible tenant.
Cons of Renting to Young Professionals:
1. They will expect more from their home, especially if they’re paying more rent.
2. The house is open to a higher possibility of conflict.
3. Tenancy periods often follow the pattern of employment contracts and so can be anywhere from 3 months to 12 months. This results in a high turnover which can be good as it allows you to adjust rent or a bad thing as you are constantly having to find new tenants.
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