8 reasons why renting to student tenants is quite ideal for landlords
Let’s be blunt: students have a terrible reputation as tenants. Many Singapore landlords refuse to consider renting to international students. They assume the students will be noisy, messy, and late with rent. (Remember what you were like with money when you were a student?))
However, more open-minded landlords have found many of these ideas false. In many ways, students may be better tenants than other types. So consider these plus points before turning the next student tenant away:
- Most student tenants have their rent paid by someone else
From our experience, most foreign student tenants in Singapore don’t pay their rent. Instead, a parent or guardian pays their rent. They wouldn’t want the student kicked out. Some landlords find that parents, in particular, may be willing to pay a more significant upfront sum. They may pay for the whole semester. They see it as more efficient.
2. Many student tenants are worried about explaining a forfeited security deposit.
This also relates to Point 1. When a parent or guardian has paid the security deposit, student tenants are often more nervous. They worry about losing it, not about it less. Only some people want to explain to their parents how they wrecked the washing machine or trashed the sofa. They know a nagging lecture comes with it. Even worse, they’d have to start paying their rent. Or, they’d have to find a place to stay that’s cheaper and less nice than yours.
3. Student tenants are much less fussy.
Students aren’t as picky as families as far as tenants go. Little things put off other tenants, such as a squeaking door hinge or a dining table that’s a bit too small, but students often ignore them.
Students tend to see the house as a place to sleep and keep their stuff. They live for activities with their friends, so they’re out longer and later than most other tenants. This has occasional drawbacks, such as if it bothers you that they come back at 4 in the morning. But it also means a very forgiving tenant about property maintenance.
Students are also easier to please. You don’t need to renovate and install beautiful cabinetry. Just throw in a free game console. Or help stock the fridge now and then. The cost isn’t high, but they’re very appreciative.
For many student tenants, it’s PlayStation over parties.
4. You can get a higher rental income.
Students tend to split the rent with their parents (or vice versa). This means you can get a little more out of your rental rates. For example, if you rent a 3-bedroom condo to a single family, you might get $3,200 per month. But if you rent it to four students (two in the main bedroom), you might get $3,600 in rent. This assumes each student pays an average of $900 a month.
There is a drawback here: you must collect rental from from the tenant separately. But do consider the tradeoff for that bit of extra work. An additional $400 monthly is a big rental boost over a year. You can also consider assigning a student tenant you trust as a master tenant. They will be responsible for collecting rent and ensuring the other tenants follow the house rules. I suggest giving the student tenant slightly cheaper rent for this task.)
5. It’s usually easier to find student tenants.
University dorms in Singapore are crowded. Many international students need help getting on-campus rooms or want to avoid dealing with the cumbersome system. As such, they opt to rent and live outside campus. The properties are within 15-20 minutes of the nearest tertiary institution, and landlords can easily find foreign student tenants there.
Also, new tenants come every year. Singapore is a great place to study. Sometimes, a quick note with a student committee or council is enough to send dozens of prospective tenants to your door.
6. You get to keep a closer eye on your apartment.
Also, student tenants probably wouldn’t mind if you put a wireless security camera in your apartment. For example, you could put one in the living room facing the entrance. But expats, couples, and family tenants might be up in arms if you did that. As their landlord and senior, students are happier if you sometimes drop by to see if they need help.
Students who are tenants often recommend your place to their juniors. They also tell their friends from their home country who are coming to study. Over time, this sets up a chain of referrals. The next tenant could be at your door, negotiating before the current one has left.
7. Student tenants need to be more adept at twisting their landlord’s arm.
Students are often first-time renters. They need to be entirely familiar with all the landlord-tenant rules. At their age, they’re also less inexperienced overall. We’re not suggesting you take advantage of them, but we are suggesting they’re less likely to take advantage of you.
More experienced tenants, on the other hand, know how to worm extras out of their landlord. They persuade you to reword Tenancy Agreements. These put all repair liability on you. Or they exploit loopholes to break leases. To avoid this, stick to using a property agent.
Veteran tenants can easily outperform inexperienced landlords. However, it’s rare for students to be this tenant.
8. Student tenants may do less damage to your property.
Many landlords believe that student tenants are whirlwinds of destruction. Like a feral cat, they think the students will rip up all their furnishings. This sometimes happens (you may have heard horror stories). A few rotten eggs aren’t like the whole. After all, there are pros and cons with every type of tenant.
Student tenants may do less damage. That’s because student tenants don’t have children or pets. Those are two familiar sources of property damage. They also do most of their activities outside the house. For example, they go out clubbing or play football with friends. If you’re worried about them throwing wild parties at your place, you can ban them from the Agreement. (And if they throw wild parties (see Point 5), it’s not usually as hard to kick them out).
Inside the house, student renters tend to be nonchalant about their surroundings. Compare this to families. Their ideal home activity might be to drill a few holes in the hall to hang a painting or shelf, paint the bedroom bright green, or remove their chandelier. You get the drift. Students spend time indoors passively. They prefer to play console games or watch Netflix.
Conclusion: 8 reasons why renting to student tenants is quite ideal for landlords
The above Eight plus points show one thing. Landlords (and their agents) shouldn’t be too quick to reject student tenants. Before you rent, check with the BUYCONDO Team. If your property is near a university, check the room rates of university halls. Doing so can get you a lot of tenants by slightly undercutting the hall accommodation rates. You can also use the data as a reference for your rates.
2024.06.24_BT_Real estate players home in on student housing to cushion their portfolios
