Guide to Becoming a Student Landlord – The Benefits and Things to Consider

Are you into real estate business, particularly landlord business? If so, then rent or lease out your property as a landlord/landlady is a good opportunity to explore. Indeed, as cash flow is king, owning properties that put money in your pocket is a sound financial and wealth building strategy.

There are many considerations when you decide to become a landlord, not least who or what type of person is to become your tenant. Families, couples or single businesspeople are just three options but there is a huge market out for student rentals, especially in cities with Universities.

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You might already own property in a student town or be looking to invest in this potentially lucrative area. It can be a good earner if done correctly but letting to students does have some differences that you need to consider before taking the plunge. There are both positives and negatives to take into account and even policies such as buildings or business insurance must be obtained.


  • Students are usually less fussy than the other type of tenant listed above. That is not to say as a landlord you can get away with renting out a property that is in squalor at an above-average rate but it means they will be more likely to accept a less-modern kitchen or unglamorous bathroom decoration if you cannot afford a renovation.
  • More income per room. When you rent to couples or single professionals there will usually be more rooms per person overall. However, with students each bedroom will be in use, with the rent coming in from each room let rather than the house as a whole. The students might pay you from one account but the theory is you rent per room which means the yield should be higher.
  • Large market for student housing. In every university town or city the students need to live somewhere. This means the market for their accommodation is huge and with the right set-up you should have no shortage of potential tenants.


  • Damage to the property. Students are well-known for their party antics and alcohol-fuelled parties. This often means that damage can occur to the property and furniture, which means you may end up having to fork out at the end of each year’s tenancies.
  • Increased competition. Depending on what town or city you are considering renting your property in, some areas already have a lot of accommodation available. If this is the case then you might struggle to rent out every room in the house. It is important to research your potential market thoroughly to find out if there is a need for more student housing. A call to the university in question should clear this up for you.
  • Needs a guarantor. Due to the often perilous financial situation students are in, with them having to live off adequate-at-best student loans and grants if they are lucky, they will usually have to get a parent to stand guarantor for them. While this shouldn’t be an issue it will increase the stress should one of the tenants be unable to keep up their payments.
  • Students can drop out of their course. A very real issue that naturally happens at every university is a student being unable or unwilling to complete the course they are on. This can happen at any time during any semester and if your agreement is set up as single tenancies then it can be a real issue as the vacant room will not be earning you any money.


Getting your assets to ‘work’ for you is indeed a great strategy. When your property generates positive cash flow, you are better than 80 percent of real estate ‘investors’ out there. Getting into the landlord business can give you just that.

Becoming a student landlord is lucrative due to the fact that the student market is huge. However, just like any other businesses, there are risks related to landlord business, which are typically coming from the tenancy arrangements.

Be sure you have the answers to the landlord-tenant relationships issues, and you can be sure that your landlord business becomes a real success. In order to do so, you need to read the right information and ask the right person.

Consult with the experts in wealth building and real estate investing (not real estate brokers!) to gain insights and access to the right action plan.

About the Author: This article is written by Amanda Fenton.