5 Benefits of Renting to Students

If you're renting to undergraduate students, it's a safe bet that the rent will get paid because many students rely on parents, grandparents or loans to cover the costs of accommodations. If someone else is paying the rent, you're likely to get it - possibly upfront.

Grad students are more mature, and likely have jobs to help pay the rent. Either way, renting to students is generally a safe bet when it comes to receiving rent payments on time.

Two habits make this even safer. Ask each student for a guarantor (co-signer), usually a parent, who signs the lease and is responsible if the rent is not paid. And when you rent a whole house to a group, use one joint lease that every tenant signs rather than separate room agreements: under a joint (joint-and-several) lease each tenant is on the hook for the full rent, so one roommate moving out does not leave you short.

Due to your proximity to campus, you'll never have to worry about finding renters. Each year there will be a new class of students looking for off-campus student housing. Turnover will be high, but you'll always have tenants.

Decide early whether you will offer a 12-month lease or an 8-month school-year term. A 12-month lease keeps rent coming in over the summer, while a school-year term is easier to fill but leaves a summer gap. Keep in mind that in Ontario the Residential Tenancies Act covers student rentals like any other tenancy, including its notice and eviction rules; the main exception is when the tenant shares a kitchen or bathroom with you or your immediate family living in the same home. Rules differ in other provinces, so check your provincial tenancy law.

While many students are inexperienced in renting, there are some positives associated with that. Because they've never rented before, they're unlikely to complain about the place. Obviously, you should be providing a clean and safe place for them to live, but students likely won't be upset over older appliances and outdated finishes.

Because the demand is high for student rentals in university and college towns, you can charge competitive rents based on how much the schools charge for on-campus housing. Many schools house only first-year students who live far away from home in residence, so upper-year students are always looking for student rentals near campus.

In addition to posting your listing online on sites such as Gottarent.com, list your student apartment with the university's or college's off-campus housing office. Most Canadian schools run their own off-campus listing service where landlords post units (some partner with a third-party student listing site), and student unions and student-run housing groups are another channel. Big universities have plenty of organizations to help students on and off campus.