Inner-city landlords should target international students, says Terri Scheer Insurance
Do you own an inner-city apartment that’s close to universities, public transport and amenities? If you answered “yes”, Terri Scheer Insurance says attracting international students as tenants could be a unique and lucrative investment opportunity.
Terri Scheer Insurance explained that by renting each room in the rental property to a student tenant you could make a considerable sum on your property each week. For example, if the property has four bedrooms and you rent each room out for $200, you’re looking at $800 in your pocket for one investment property.
“This can present a unique opportunity for property investors with international students driving demand for affordable student accommodation,” said Terri Scheer Insurance’s executive manager Carolyn Parrella.
While attracting international students as tenants can turn into a lucrative investment option for landlords, Parrella warned that it needed to be managed efficiently.
Parrella suggested furnishing the property with a study desk, good lighting, modern appliances and high speed internet connection.
“International students travel a long way from home to carry out their university studies and want somewhere to live that is equipped to suit their needs,” Parella said.
Apartments or properties with more than one bathroom or an ensuite attached to the bedrooms will also be a major drawcard explained Parella and are likely to appeal to a greater pool of potential tenants.
“Also, think about bedding with single beds generally the most practical choice for students.”
“Students tend not to have large budgets therefore décor and furnishings can be kept minimal.”
Parella said the rental agreement should clearly state all inclusions and set out how disputes relating to those inclusions will be resolved. For instance, if utilities such as water, gas and electricity bills are included as part of the agreed rental price, it should be outlined on the rental agreement.
Another consideration is any damage caused by the tenants, which can be costly for landlords if they do not have adequate insurance to cover replacement.
“A specifically designed landlord insurance policy could help to ensure you are not left out of pocket should these unforeseen events occur.”