Renting to students can be a great opportunity for landlords to expand their pool of potential tenants, especially if your property is located near universities. But it also has benefits like steady demand, reliable rental cycles tied to academic calendars, and increasing the chances of keeping vacancy rates low. However, it comes with a unique set of challenges: From higher turnover and accelerated wear-and-tear to uncertainty around the tenants financial stability and behaviour, landlords need to weigh the pros and cons carefully before accepting rental applications from students. In this blog, we’ll walk through some important considerations to understand what makes students different as renters and how to prepare your property, your lease, and yourself for this market.
What to Know Before Renting Your Property to Students in Calgary
1 – Lease Structure and Terms
As we mentioned above, most students look for housing that aligns with the school calendar, which is why we recommend working with a fixed-term lease (for example September to April or September to August) provides predictability for both parties: Students know they won’t need to relocate mid-semester, and landlords have the peace of mind of having the property occupied for most the year.
However, some students, especially undergrads, may want to leave during the summer break and look for another rental next semester. To reduce the risk of having the property vacant, you should decide beforehand whether to allow short-term sublets, offer a reduced summer rent, or focus on attracting year-round tenants, like grad students and interns.
Unlike families, renting to students offers some flexibility regarding the way you choose to rent the property, including renting room-by-room, which can generate more revenue than a single group lease, since each room can be priced separately according to size and other individual amenities each room may have.
But room-by-room leases pose a new set of challenges: From more paperwork and management workload, to increased financial risk if one or more students don’t pay their rent on time. It’s also important to mention that despite the fact that shared accommodations are increasingly common in large cities like Calgary, this housing modality isn’t covered by the Residential Tenancies Act (RTA) and falls on a legal grey area that it’s still underdeveloped in Canada and may leave landlords vulnerable to legal issues, which is why opting for a single group lease under which all tenants share responsibility and its recognized by the RTA is the safest option when renting to students.
2 – Financial Stability
Students are higher-risk tenants because most of them don’t have a long employment history, credit score, or steady income, which is why you should take extra preventive measures to reduce the risk of not getting the rent payment on time or property damage that they can’t take responsibility for financially. The most common requirement to rent to students is requesting a guarantor, often a parent or guardian, to sign a legal agreement stating they are responsible for rent and any damages if the student defaults.
To make sure the guarantor would be able to honour their commitment if needed, always follow these good practices:
- Run a background and credit check, and request proof of income documentation.
- Clearly outline the guarantor’s responsibilities in the lease.
- Make sure the student and guarantor sign the documents to avoid loopholes.
Protecting yourself with guarantors creates a safety net while still keeping your property accessible to reliable student tenants.
3 – Property Wear and Tear
Most students who will be your potential tenants are living away from home for the first time, so they may not have developed habits around regular cleaning, property care, and may not know how to handle basic home issues, which often leads to faster deterioration of appliances and furniture.
To be on top of the property’s maintenance requirements and its condition, conduct inspections more frequently, every three to four months, to catch issues early. You can also provide your tenants with a maintenance guide for simple issues, with instructions on how to reset breakers, unclog drains, and the proper use of appliances to help them solve minor problems themselves, saving you time, money, after-hour calls, and emergency repairs. It’s also important that you encourage them to report small issues they can’t solve on their own quickly, as students often ignore problems until they become expensive repairs.
4 – Noise and Neighbour Relations
Renting to students and the potential of getting more frequent noise complaints go hand-in-hand due to late-night gatherings, music, and parties, all of which are part of the university experience, but can result in angry neighbours, straining community relations and result in bylaw fines or even escalate with police involvement.
If your property is a house, it’s also important to consider the type of neighbourhood it is in. Family-oriented neighbourhoods or quiet residential streets may be less tolerant of student rentals, leading to frequent complaints and conflicts. In the case of condos, some boards have restrictions on how properties can be rented out, including student housing. Make sure to review these rules carefully before signing a lease with students.
To protect yourself, include clear lease terms about acceptable behaviour, noise levels, and guest policies. Specify quiet hours if you’re renting a home, or highlight the importance of complying with the condo noise rules if you’re renting a unit, and outline the consequences for repeated disturbances, including warnings, fines, or eviction.
We also recommend that you make yourself approachable by sharing your contact information with neighbours so they can reach you before involving the authorities. Showing your goodwill to your neighbours will show them that you care about the community and will make them more patient and cooperative if problems arise in the future.
In Closing
Renting to students in Calgary isn’t for everyone because of the extra amount of stress it adds to the already stressful job of running a property, but it can be rewarding for landlords who choose to target this demographic. With careful planning and research, you can get the right balance between profitability and peace of mind, all while protecting your investment and fostering positive tenant and community relationships.
Do you want to rent to students, but are on the fence about the potential hassle? Hiring a property manager to do all the heavy lifting for you is the best option. Get in touch with us today and get a free quote.
