How Landlords Can Manage Students Living in Their HMO Property Designs
This is a matter of serious debate whether an apartment be rented out to students or not. Being among the investors or landlords of HMO Property Designs, this matter becomes quite serious as to whom you should rent out your property. Can students be considered as good tenants or should an owner avoid to let his property to students? If you get some stubborn tenants will it be easy for you to get rent in time or vacate the building after the expiry of the deal? Such questions arise in the minds of the people and we must try to search for their satisfactory answers. You must see the both sides of the picture before making any decision.
The Definition of an HMO
Let us understand what an HMO Property is. It is, in fact, a house (H) of multiple (M) occupations (O), where three or more unrelated people live together at the same time. Every occupant is responsible for their separate rent. Why this trend of renting a building for living together has become so popular among investors? The reasons include higher cash flow, lower vogue periods, and a high yield of rents.
Renting out HMO To Students
As it has already been discussed, there are both benefits and losses of letting your property to students. Some important points are discussed below which you must consider before letting your property.
• A friendly atmosphere: There are fewer disputes among the students. Normally students are more friendly, more caring, and in many matters, they are less sensitive. They are relatively more cohesive than other people. They enjoy the company of young people and accommodate each other. Hence as people who live together, they make the best community.
• Less Problematic: For most of their time students are involved in their studies. If they are doing a job, then they are out of the residence for most of their time. Then they are in an age which is mostly carefree and they are least bothered about the hardships of life. This makes them the best customers. Seldom they look at the legal implications of the business deals. Their focus is on the completion of their education and getting degrees with good grades. Hence, for these reasons, they are the least problematic customers.
• Increasing Demand: Education is the sole interest of the youth. They are eager to get good degrees and then start their practical life. More colleges and universities are offering degree programs. There is an increased demand for rented buildings. It is more convenient to live in a rented apartment which is shared among the students. Living in such shared accommodations students share their responsibilities like cooking food, cleaning of residence, and washing of utensils and clothes.
• Higher-Yielding Rents: Most students do part-time jobs to make up for their financial obligations. This helps them in paying their rent in time. As there is an ever-increasing demand for rental accommodations in the student’s community this puts pressure on them to pay their rents on time.
• A good investment opportunity: It’s a proven fact that letting a property to students is a good deal, particularly in those cases where an HMO is near a college or university campus.
• Better Managerial Skills: Dealing with students is not an ordinary man’s task. It requires extraordinary professional skills. As an owner or investor is not available all the time, he must hire the services of professionals who will make his life easy. Hence a variety of services will be available which will facilitate the investors and owners.
• Damage to Property: Students are young, emotional, and immature. At times they may create a mess. Therefore, the chances of damage to property may be higher in case you let your HMO Property Designs to them.
• Higher Turnover Ratio: Students are mostly in search of better or cheaper accommodation. If they don’t like something then there are bright chances they will move out.
• Scrutiny and Screening Problems: Different people belong to different cities, whereas others may be out of their homes for the first time. It is not easy to know the background of every individual. Such individuals may make the lives of other people and owners miserable.
• Longer Summer Empty Time Periods: Due to long summer vacations, the demand for rental property reduces significantly among the students. They move to their homes and this leaves the rented buildings empty for a significant part of the year.
You must make a decision yourself. If you see that there is a high rental yield and HMO location is high in demand among students, you will definitely like to rent your property to them. However, for a long-term tenants, you must look towards the well-off professional tenants. They will be easy to handle and this will make your life comfortable.
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