Rent to young students

My IP has been vacant for 7 weeks and now get an application from 3 young boys, friends together, 21 years old.

I have never rent out to such young boys and worry that house will become party animals. What are your opinion?

 

Unless deeply religious, which you are not even allowed to ask about (like SDA’s students who are going to bible school nearby for example), house will become party animals

 

When i was in uni we rented out 2 houses with 2-3 other mates and we did a damn good job maintaining the houses in better condition than families would. Yes we did have 1-2 parties every month and the weekly lan gaming session and backyard cricket match with the inflatable pool in the corner. But made sure the house was immaculate condition at all times. And paid the rent before due date every single month.

Both times we did get the whole bond back after the first inspection. Not everyone is a party animal and house wrecker as some people might think and I know quite alot of students that took care of rental properties real well.

Also I do have 1 IP rented out to 2 students for the last 12+months and I have not heard any issue and all inspections done by the PM have been excellent.

 

We were worried about a couple of young guys who had never rented before, when they moved into one of ours last year. Had the inspection on the weekend, they are keeping it well - it's clean and tidy.

They've also never asked for anything, & we've had no neighbour complaints (and they have a troublesome one on one side!) so we're pretty happy. They are too, and we are renewing them for another year.

Just checked - they were 21 when they moved in.

 

Do they have a rental history or are they all moving out of home for the first time? Given the vacancy scenario worth asking a few more questions.

- Luke

 

I love students,they’re like my own children: can be naive, filthy and all that but at the end the day, you need to know what’s important to YOU: money, cleanliness or something else...

I have developed a system with all my students and I think now they just treat me as their Auntie

 

My manager is doing background check. If everything is ok, then I will rent out to them.
From my past experience, with students,I do not to deal with professional renter's issues but sometimes rent is arrears.

 

Please explain

 

I was a student for a looooong time. Always shared. Sometimes we had parties. Nothing wild. We kept the place neat and tidy. Landlords loved us, they thought we were the best.

Bottom line? Just like any tenant, not all students are trouble makers or party animals.

 

A way forward for you?
If the parents of the three boys would go as Guarantors perhaps that would be a way forward for you?
Check that this is legal etc.

 

Do they have solid jobs & is it the sort of house that can cope with the extra wear and tear? Given its been 7 weeks I would definitely investigate further, and maybe add some special conditions to the lease - at least it might deter them from too many parties.

 

Conditions can't impact on the tenant's quiet enjoyment.

 

So disappointed is some responses, most of us were student at one point and young looking for a place to stay. Why do people have to stereotype and discriminate??

 

I recently rented a $750pw renovated house to 5 young students (the only way they could afford to live in the particular suburb in a nice place), so far so good. As above, although the stereotype does exist, can't paint them all with that brush by default. As a Lessor, you need to manage your risk with insurances and other control mechanisms, that's just the nature of investing.

 

Because they were students once. What they don't realize is the students of to-day are better than the people who where students 30 and 40 years ago and much more respectful . I prefer students. All my tenants are under 30. 3 boys could be a concern I would prefer to have a girl in the mix they seem to have a positive influence. I was disgusted with agents when my son tried to get a unit in Bundoora even though cost wasn't an issue, was prepared to pay and did pay $50/week above going rates. Most agents didn't even reply to applications and some units were vacant for many months after he applied some wouldn't even bother to arrange an inspection. I don't know what is wrong with some LL's who engage these lazy incompetent managers who are costing them thousands of $ a year.

 

I'd consider:
1) Can their parents go guarantor on their rent?
2) Whats the maximum bond allowable in the state?

 

From an investor pov I think its risk management, there's no issue with renting to students, some are fantastic and some are not so much. Similar to if I was renting to someone with pets, I would want to ensure there's coverage for additional cleaning and damage if needed. A condition doesn't have to impact someone's quiet enjoyment of a property - it may look at preventing situations where there are too many guests at a party or police get called more than once etc

 

Depending on the state- be aware, having a written guarantee can void your right to take a bond. If the rents $350pw or over (in Victoria anyway) ask for a 6 week bond.

 

I love young people as tenants- they're usually very impressionable and cooperative. They're also very black & white, it's easy to tell whether they're responsible or not- unlike some older adults who are Leopards who've learned to hide their spots...!

Do the background checks and make sure they can afford the place. If you do ask for guarantors- the only safe way to do so is to place the guarantor on the lease as a leaseholder, letters hold no real legal weight.

As far as parties- do you know the neighbours and are they likely to have problems with parties? I often tell my younger tenants whether they have cranky neighbours or not, so they're pre-warned to be conscientious. Sometimes the neighbours will just want to be invited- ha!