They are a few different ways that you can rent out your buy to let property. While most people put it on the rental market hoping that anyone will rent the property there are those who only opt for professionals, students, or serviced accommodation. Let’s take a look at the pros and cons of renting to these different types of tenants:
- The home is likely to suffer less wear and tear than student accommodation as professionals will be out working.
- Professionals are likely to be more mature than students and have a different outlook on life.
- Professionals can be quite responsible and likely to deal with any situation that arises without getting you involved.
- You can charge more rent from professional, and homes of multiple occupancies can result in great yields, especially if young professionals still want to live with other people.
- Professionals will expect a bit more from their home than they did when they were living in student accommodation. You may, therefore, need to ensure the home is fully equipped and decorated in a contemporary way.
- Those who are living in houses of multiple occupancies may not know the other tenants before they move in. This has the possibility to cause conflicts if they don’t get on. A dispute could result in someone moving out, perhaps even being forced to.
- Tenancy periods can follow employment contract patterns which could last from 3 to 12 month. This could mean you’ll see a high turnover.
- You can have 5 tenants, for example, that each has a guarantor to back-up the rent.
- You’re less likely to have a sitting tenant.
- Many students will live with their friends which means they’re more likely to get along.
- Mortgage lenders like the higher probability of occupation.
- Students can be happy with cheap accommodation as they’re unlikely to stay there very long.
- You don’t have to pay council tax.
- Higher competition from purpose-built student accommodation.
- Students can cause accidents or have unruly behaviour that results in more wear and tear.
- They might expect you to change a lightbulb as they don’t know how to do it themselves.
- The parents of students might be over-protective of them and refuse to believe they have damaged a part of your property.
- If the students party loudly you may have to deal with complaints from their neighbours.
- This type of accommodation is fully furnished and can include amenities such as a gym, laundry room and recreation room ready to move into so appealing to tenants, plus room service and cleaning.
- You can have different types of lets – weekends, short-term, long-term and variable length which can appeal to businesses with employees who need to relocate for a period of time.
- As this type of renting is attractive to some companies and you may get good money.
- You could have a long-term relationship with a company
- The property may sit empty from time to time
- You may have to deal with potential damage to furniture and have costs to replace it after wear and tear
While there are different ways to rent out a property they each have clear pros and cons. Working out which option to go for can be tricky but choose the right one and you could have a property that constantly brings in good returns.