1. Double down on marketing efforts – minimal clean up (cheap option)
2. Start renovating property and cross your fingers (expensive option – long term value)
3. Sell property (property will be undervalued due to the house not being rented)
A. Double Down on Marketing Efforts and Minimal Clean Up
This option is what most Landlords prefer. They usually think they can rent out their houses on their own. Sometimes this doesn’t work out, and they scramble at the last minute to contact a student property rental service company in London, ON like us. Unfortunately, we usually end up going into these properties and realizing they are in poor condition, need a lot of cleaning and also to be marketed properly. If Landlords oblige to make the necessary repairs, cleaning, and other small upgrades the Landlord may have luck with a rental service company who can promote a good product that prospective tenants will sign a lease on right before school begins.
B. Start Renovating Your Property and Crossing Your Fingers
There are several reasons why student rental properties in London do not rent out (bad location, price too high, house is in disrepair, no marketing, etc.) but the #1 reason we have found is that the house needs to be upgraded. Routinely, many of the student rental properties need regular maintenance (service furnace, AC, upgrade roof, etc.) alongsidecosmetic upgrades. The largest improvements you can make in your rental property are paint and flooring, and next are kitchens and bathrooms in regards to renting out your house. The landlord may lose money in the short term (i.e. September) but if they take a few weeks to renovate there unit, and have enough burn through funds to pay the bills until January or May, the house is sure to rent out if it is marketed properly.
C. Sell Property
This option is for those Landlords who no longer want to be in this business anymore, who do not have the capital to invest money in the house, nor the funds to pay the bills for an extended period of time for the rent to kick in again. These landlords usually lose money on the sale price of their house because if it didn’t rent out before school started, as stated early, it probably needs money for cosmetic upgrades. If a student rental property goes up for sale right after the school year has started, needs money to bring it back up to par with other rentals, and is currently vacant, this will drive the price down. An opportunistic investor can apply the tip above (start renovating your property and cross your fingers) to buy a house, fix it up, hold onto it, and hire a company to get a lease that provides great value and top dollar out of your house.
If you are a Landlord who needs advice on purchasing a student rental, renting a student rental in London, Ontario or wants to know how much rent you can get out of your current rental, contact us.