Advantages and Disadvantages of Renting a Property to Students
Students are a very profitable market in Edinburgh. Even the government is introducing schemes to facilitate them. Edinburgh has some of the finest educational institutions in the world. Student from around the globe visit Edinburgh to study as it provides them with promising futures. Due to this and several other reasons there are a number of people in the city who invest in student properties.
Why students make good tenants?
Firstly, renting out a flat to students mean that you can fit in more students. For example, if you have a two bedroom apartment, letting it to students mean that two rooms will be rented out to two people, hence it yields more rent. Renting the same property to a family or professionals will not yield this much.
Moreover students are not at all fussy about the place they live in. They will put up with anything as long as it’s accessible by bus. They don’t even bother about the dated bathroom fittings or the out of style furniture. Students are also very bright and helpful. Once you tell them that you need then to do something, they come very handy. Lastly the students or their parents are more likely to pay a three months advance and also tend to leave the property at the end of their tenancy.
Downsides of student letting
You must always find out the dropout rate of students in all the local institutions. You will not want to stick with an empty property just because the student was a dropout. You should also check the chances of letting the property in a particular area to students. As many private developers and universities are now building student residential halls. Hence if there is a nice flat/apartment at the doorstep of the university then you will definitely have problems finding student tenants for your property.
Having a number of students use the property will result in more wear and tear. You will have to replace carpets after every few years, kitchens and bathrooms will need regular maintenance. Hence it is likely that around ten percent of your annual rental income will go to maintenance. Moreover, you will have to keep a check on the property to prevent blocked gutters, dripping overflow pipes. Hence you to quite an extent you will have to babysit them to ensure that no harm is being done to your property.
Lastly, renting out your property to people from different families mean that it is a House in Multiple Occupation. Under these circumstances you are legally obliged to comply with the HMO regulation.
KateForbes - About Author:
Kate ForbeS is a marketing officer for Greenlet, property lettings website in Edinburgh. If you want more information on for rent edinburgh, please visit edinburgh student accommodation.
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