The student market can be a lucrative business but landlords need to do their homeowork when selecting tenants as Tim Collins from Student Rental Investing explains.
When renting to a ‘typical’ tenant, the normal checks that I undertook were references, job credentials and a credit check. I could then take all that information and make an educated decision on whether to rent out to that particular individual. I'm also a big believer in trusting your gut so if your intuition is screaming something’s not right, well then it's probably worth listening to.
When it comes to students, things can be a bit trickier. Credit checks are irrelevant as students often have not had time to build credit check. As such, it may be necessary to do a credit check on the guarantor.
By having a fabulous advertisement with great pictures and offering utilities for a nice affordable monthly price, you're likely to attract more than just students. It's not good practise to mix students with non-students and so you need to be explicit that it's a student only house. Ideally, you will attract a group of students that already know each other, and they will all be sharing common areas and bathrooms so this makes things much easier.
7 tips for selecting great student tenants:
1. Ask for proof that they are a student - acceptance letter or student card.
2. Ask for a guarantor to sign the application form establishing that they have some financial backing.
3. Ask for a deposit before holding a room, many show interest but change their mind.
4. Establish start date and term of lease that they are looking for.
5. Get job and personal references.
6. Get details of most recent addresses for last three years.
7. Set expectations - No parties will be tolerated at this house.
Source: http://www.canadianrealestatemagazine.ca/expert-advice/item/2135-7-tips-for-selecting-great-students-for-your-rental
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