Sticking to a specific target market is a great way to simplify your business model, especially if you’re investing in real estate. Doing so narrows down your market reach while giving you a more reliable experience of dealing with tenants.
Having a property next to universities means you can have an exclusive market of renters. Since having closer living accommodations is generally a favorable financial strategy for college students, there will always be a demand for rental properties nearby schools. However, renting to college students comes with unique challenges you need to prepare for.
The Problem of Dealing with College Tenants
There are several perks to servicing college tenants as your target demographic. For one, they’ll rarely miss their dues since their parents are paying for them. Additionally, it’s not hard to find replacements to fill empty units during in-between semesters. While these benefits are valid, dealing with young adults will be a considerable obstacle on its own.
Before you open your units’ doors to college tenants, here are three things you should be wary of:
Lack of Financial History
While some students are funded by their parents, there’s still a considerable number of students paying for their utilities out of their own pocket. This becomes a risk for landlords since most college students have limited or no employment, credit, or rental history.
Since you don’t want to incur more risks than necessary, it’s important to revise your screening criteria for student tenants. Instead of the usual standards, you should focus on alternative references to give you a better estimate of their character.
Inexperience in Maintaining Living Spaces
For most college tenants, staying in your property will be the first time they’ve ever lived anywhere besides their home. This can mean that they’re inefficient in performing basic property upkeep, like taking out the trash or doing their laundry. Their inexperience is a major concern, especially if you’re renting spaces to non-students.
If you want to maintain discipline and order in your property, you need to have clear consequences in your rental contract. This means you should highlight specific clauses, like security deposits and tenant responsibilities. Being clear of the terms for penalty fees or potential eviction should minimize the damage your property receives from unruly tenants.
Noise Complaints and Security Needs
College student tenants are at the prime of their lives, so you should expect certain instances of unruly behavior around your property. Getting drunk, arriving home late at night, and making a ruckus inside their unit are things you should already anticipate. For these reasons, it’s your responsibility as a landlord to equip your property with certain improvements.
Although you can’t control these tenants’ behavior, you can reinforce your property for these events. For example, soundproofing your units is a great way to avoid getting noise complaints from neighbors. You can also set up security systems to maintain the protection of your drunk tenants in case they become vulnerable or a danger to themselves.
Conclusion
Keep in mind that the problems mentioned above are just some of the many troubles that come with getting college student tenants. Since student renters may require more guidance than typical tenants, you must be more hands-on to maintain order in your properties. Unfortunately, this will be difficult to observe if you’re managing several properties simultaneously. Thankfully, you can seek assistance from property managers to ease your burdens.
Passing your burdens to property managers is an excellent way to focus on your business model without personally handling inconveniences. This is why investors should get professional help from local experts. If you’re looking for a company that provides property management in Apopka, FL and nearby areas, contact us today!