If you’ve been wracking your brain, trying to figure out who your ideal tenant might be then we’re happy to say we can shed some light on your situation. Maybe you’ve recently invested in an HMO property in a student town or maybe you want to figure it all out before you put down your money. Either way, HMO marketing is a breeze when you know who you’re targeting. So, who should you rent your HMO property to; students or professionals?
Snapshot: Students vs Professionals: Who Should I Rent My HMO to?
Student Tenants: Are They Really That Bad?
Demand is Through the Roof
The Myth of the “Skint Student”
The “P” Word
Get to Know Your Prospective Student Tenant
Are Professionals the Perfect Tenants?
High Job Demands
Professionals Want to Feel at Home
Marketing Your HMO to Someone With Experience
Students vs Professionals: Pros and Cons
Student Tenants
Professional Tenants
It All Comes Down to the Individual
Student Tenants: Are They Really That Bad?
There’s no denying that students have a bad rap. Images of destroyed furniture and beer-stained carpets come to mind, right? But, arethey really that bad?
Demand is Through the Roof
Let’s be honest, demand for student housing is through the roof. If your HMO is in a student hotspot, marketing your property to the rowdy bunch probably seems like the fastest route to get your rooms filled. Well, you’re right! Students are forever searching for new homes. Plus, most University courses last for at least 3 years, so you could be looking at securing a long-term income.
The Myth of the “Skint Student”
You’re probably aware of the whole “skint student” narrative but, to be honest, it’s a bit of a myth. It’s not out of the ordinary to see twenty-something-year-olds counting coppers in the supermarket. However, in my experience, that’s just because they’d rather save on veg and spend on pints. Student loans guarantee cash flow every month and most students can still
rely on their parents for a little help. If you line up your rental demands with their loan payment, they will have the money available. Plus, you can always ask for a guarantor. That way you’ve got a plan B if the students can’t pay up.
The “P” Word
Yup, we’re all thinking it… What if they throw parties? Yup, that’s probably going to happen. I know, I know, the last thing you want is to refurnish your HMO every 6 months. However, you can sidestep this fear by adding a “no party” clause into your let agreement. It might not stop them but it may prolong the inevitable. Conducting regular inspections will also encourage them to at least pretend they follow the rules.
Get to Know Your Prospective Student Tenant
If you’re seriously thinking about marketing your HMO to students, it’s a good idea to get to know your prospective candidate personally. Students all get shoved into a bubble of bad press, but they’re not all party animals. Yes, you’ll probably run into some issues if you rent out your HMO to the University football team, but chess club tenants won’t exactly keep you awake at night. Look past the “student” exterior!
Are Professionals the Perfect Tenants?
HMO landlords usually prefer the idea of professional tenants. Is marketing your HMO property to professionals a good idea though?
High Job Demands
Professionals seem like the perfect tenants, right? To be honest, some of them are. They don’t spend as much time in the property as students do, meaning general wear and tear costs are pretty low. On the other hand, they tend to have pretty demanding jobs. Their busy lifestyles may not allow them to deal with simple maintenance issues. As a result, you may have to deal with issues that seem unnecessary. Plus, there’s no telling when their job might take them elsewhere.
Professionals Want to Feel at Home
When marketing your HMO to professionals, you’ll have to splash a little extra cash on good quality furniture. They’re looking for a home, not just somewhere to live. So, spending a little extra to make your HMO look more inviting is probably a good idea. Plus, the extra upfront cost will work out in your favour in the long run. After all, better furniture equals lower maintenance costs!
Marketing Your HMO to Someone With Experience
Unlike students, professionals will most likely have prior experience with landlords. They may expect to get more for their money(nicer furniture, back rubs, etc). Okay, maybe not backrubs. On the positive side, the whole process will probably be a lot quicker with professionals. They will most likely be ready with their references and deposits. So, it will be smooth sailing once you’ve chosen your tenant.
Students vs Professionals: Pros and Cons
Student Tenants
Pros: Student homes are in high demand They’ll see you as a figure of authority Asking for a guarantor gives you more income security They’ll usually stick around for a couple of yearsTechnically, they should be intelligent, so any issues will be solved quickly. You won’t have to spend as much money on furniture, Ikea will do Students usually apply in groups which is great if you’ve got a few rooms to fill
Cons: More general wear and tear Parties could result in complaints from neighbours/damage May expect to have desks in each room Long summer holidays could leave you with an empty property The rise of private student halls could open up more competition
Professional Tenants
Pros: Less general wear and tear A faster move-in process Higher wages Probably wouldn’t move unless their career demanded it Tend to just entertain friends and families rather than throw parties Usually don’t have kids
Cons: Their busy lifestyle means they may not be able to deal with simple maintenance issues themselves Their job may require them to move They’re looking for a home - you may have to spend more money on furniture initially
It All Comes Down to the Individual
Ultimately, professionals seem like they’d be the ideal tenants. Sure, if you fill your HMO with lawyers and doctors, you probably won’t run into any problems. On the other hand, if a bunch of bartenders and DJ’s rock up to your new property, it’s a whole different story! I don’t mean to feed the stereotypes, but you get where I’m coming from. At the end of the day, it all comes down to the individual. Get to know the person behind the category your prospective tenant fits into. That way, you’ll have more confidence in your HMO tenants and they’ll respect you more for making the effort!
Don’t have time to get to know your prospective tenants? That’s okay, we’ll do it for you! Check out how we can help you fill your HMO.
