Consider yourself blessed if you own a rental property near a university or college. You have opportunities that other landlords of properties so far away from campus do not. Students will likely to rent from you, irrelevant of any ongoing economic difficulties.
Any of you might be worried about getting students as tenants. Any landlords may be suspicious of renting to students since they feel they are too young, reckless, and susceptible to drinking or wild party. However, the majority of them are serious about their studies and seek a peaceful, clean, and convenient place away from on-campus disruptions but not too far away for travel.
Most are dedicated to having good grades because of the mountains of debt they had to pay in order to attend school or the large commitment their offshore parents had to make in order to get them into a great school.
So, if you’re thinking about renting out to students, you’ll need more than luck to find the right student tenant and turn this venture into a successful enterprise. Certain facets of the property maintenance process require you to be vigilant as a landlord.
- The student rental market is one of the most predictable, always handy for landlords hoping to rest easy at night.
- There’s often more students living in a house than there would be in a regular tenancy.
- Some foreign students come from wealthier families and are more concerned with the rental facilities or location than with the monthly rental rate. They are able to pay more than the going rate.
- Students are also not picky and would have no need to renovate the house and make it “theirs.” They simply want a place to study and relax.
- Some parents can pay their child’s rent in advance.
- You could get lucky and secure a lease agreement for the whole four-year program.
- Students are less likely to attempt to game the tenancy scheme.
- They will have further financial security with an authorized loan or pledge from their parents.
- Students are more likely to be adaptable and welcoming when it comes to house sharing circumstances, helping you to rent out rooms in your home as a mortgage supplement.
- There’s no point investing in expensive furnishings. Head to Ikea and buy cheap.
- Students tend to rent for 12 month periods. No long term contract obligations.
- The beauty of renting to students is that your property doesn’t need to be perfect.
- Students by nature are intelligent (there are exceptions). This means any issues tend to be resolved relatively simply with open communication.
- You may contact the university housing department for assistance in filling the vacancies with eligible students.
- Students do not have a year-round commitment and may only lease for the 8-month period.
- Student lets are prone to sudden and dramatic damage. Yes, there is a possibility that you assign a reckless teen.
- Students do not yet have a stable credit background.
- If they are first-time tenants, students are less likely to have any prior landlord references.
- All students expect a fully furnished property which entails the upkeep and maintenance of white goods.
- Wear and tear – All student properties are more prone to wear and tear. Expect phone calls out of the blue about a broken sofa or bed.
- Repaint – We know plenty of student landlords that have to pay for a fresh lick of paint on the walls every year.
- Wannabee lawyer – Some students can get a bee in their bonnet about the contract. They’ll become adamant you’re trying to mess them over. The wannabee lawyer can be a particularly frustrating student to let to.
- Private halls – Private accommodation for second and third year students is on the rise. Usually students prefer the experience of living in a house with friends, but private halls are a real threat that’s worth your attention.
- Maintenance bills – Maintenance bills are usually more expensive than those in a regular tenancy.
- Screening – You can’t reference or credit check students, this can be worrying.
- Finance – Students are notoriously poor with money. Their finances can come from student loans, grants, part-time jobs and parents. This instability can be a little frightening to landlords.
Student Let Rental Action Plan
These rental action plans should improvise your experience on student let investment:
- You may get their parents to be guarantors even though they have no credit background, credentials, or job history.
- If renting to a student would trigger a cash flow deficit for two months, consider raising the rent to cover the gap and including furnishings or services in the rental price to add consumer value.
- Outline requirements and create inspection reports to reduce the possibility of disruption to the property. If the property is in a residential house, go through the by-laws with the occupant to escape fines.
Conclusion – Get Real Estate Negotiator’s Help.
In Malaysia, most landlords and tenants would expect “after-sales services” from realtors. It is not the realtor’s obligation to stay in the picture after the deal is sealed.
A Malaysia realtor’s position in the rental market is to match landlords and tenants. Nevertheless, many realtors have taken the extra mile to assist landlords and tenants with issues that arise after signing the tenancy agreements.
As landlord, you could get a real estate negotiator (REN) to help you with tenancy agreements. Since there is no foolproof strategy for weeding out bad tenants, engaging with a REN who is professional and willing to help would be a great relief to landlords.
Indeed, RENs play an important part in assisting inexperienced landlords and renters. It is necessary for a real estate negotiator/agent to manage the expectations of both landlords and tenants, and brief them about the terms of the agreement. This is to ensure that both parties are on the same page.
However, whether or not to answer the call depends on each REN. As it is not compulsory for them to always be there to assist, clients should ask the REN whether he or she is prepared to do this.
Head over to this inquiry form if you have inquiries about renting or selling property in Malaysia.