However, despite these legitimate concerns, investing in student housing can be extremely profitable and low-risk. Here is everything you need to know about this sector of the market.
Safety
Student housing is a modern, organized place that houses students during their university years. These communities typically feature apartment-style units, individual leases and roommate matching services.
Student housing communities often offer residence life programs that collaborate with the personal growth of young people. Safety measures are a top priority for student housing developers like David Adelman.
Many developers use technology to communicate with residents in an emergency. It allows them to share information quickly and effectively without compromising security.
Reminding students that their parent’s homeowners insurance does not cover off-campus rentals is also important. Please encourage your students to purchase renters insurance to protect their belongings. They should also remove anything from hallways and stairways that could block an exit in the event of a fire.
Location
When choosing student housing, consider location and proximity to campus. Some purpose-built student communities are located directly across from university campuses, providing students easy access to classrooms and social activities.
These student apartments may also offer unique resident life programs and roommate-matching services. Alternatively, on-campus dormitories offer students a more structured environment and can provide convenience through meal plans. This type of student housing can also be more cost-effective than renting an apartment since the costs are bundled into tuition fees.
Off-campus landlords often require students to sign a lease for the entire academic year. It can disadvantage students who plan to travel or work during the summer. If this concerns you, communicate with landlords to ensure the lease is flexible.
Leases
Student leases are typically shorter than conventional ones. It allows students to leave a property if they find it isn’t right for them without being financially responsible for the remaining lease term.
Students who live off-campus often want to experience the independence and freedom of being away from their universities and school grounds. It makes providing attractive off-campus housing important.
Many student tenants will require a guarantor to help them secure a rental agreement. It can be a parent or another family member, or there are now services available that can act as a guarantor for a fee.
The guarantor agrees to take responsibility for the rent should the tenant fail to pay. It is common for students who are not employed and need more income to spare.
Tenant Applications
As with any rental property, a detailed tenant application is a must. A standard application will ask tenants to provide income information, employment verification, personal references and a background check.
Tenant applications may also require that students obtain renters’ insurance, which will help cover stolen items and liability claims against the property owner. It is a smart move for student housing, as it helps to reduce the risk of long-term damage.
Another tip is to include a clause that states the landlord reserves the right to verify all of the information provided by the tenant. It will help to keep the landlord informed of any problems or issues that may arise.
In addition, it will remind the applicant that they can be denied if their credit report or background checks reveal any negative information.
other related articles of interest:
Simple, Essential Tips for First-Time Real Estate Investors
Methods for Improving Relationships Between You and Your Tenants
Maintenance
When it comes to maintenance, prevention is a lot easier and cheaper than fixing a problem after the fact. Keeping an eye out for small issues is essential in student housing to avoid expensive repairs down the road.
A dripping faucet isn’t just an annoyance: it can add to your utility bill and indicate bigger plumbing problems. Preventative measures such as regularly checking water usage and using energy-efficient appliances can keep your utilities low.
Different housing options offer varying facilities and amenities. Consider what’s important to your lifestyle, such as access to laundry facilities, study areas, and communal spaces.
It would help if you also looked for on-site maintenance services and a quick response time when reporting maintenance issues. Also, check if your landlord offers tenant insurance, which can help mitigate damages and other costs.
Image Credit: student housing by envato.com
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