The pros and cons of different types of tenants.
Your role as a good real estate agent is to match people with properties. In the case of lettings, it is as important that the property works for the tenant as much as the tenant should be suitable for that property. Every tenant has its advantages and disadvantages which we have categorised below for your ease.
1. Single occupier
Pros: with just one person living in the property there will naturally be less wear and tear, which is attractive from a maintenance perspective plus there is only one point of contact to liaise with in relation to the property.
Cons: as a landlord one of your main concerns will be that you receive your rent in full in a timely fashion but with a single occupier there is only one income to rely on. Additionally some single tenants are more prone to changing their living habits more regularly whether that is to move countries or to move in with a new love interest.
2. Families
Pros: families seeks stability so are likely to want long term tenancies to avoid the upheaval of having to move the whole family, plus a possible joint income provides security for the landlord.
Cons: families equal more people which results in additional wear and tear on the property that result in higher maintenance costs during, and between tenancies. Family tenants will also seek larger properties so if you want to appeal specifically to this market a large investment will need to be made to buy a property suitable.
3. Students
Pros: whilst the thought of renting to students is not always that appealing, depending on your property and the type of student you are aiming for, they can make good tenants. If a student has paid vast sums of money to attend a university then it is likely that they are hardworking and take their studies seriously rather than the partying type. Often having to pay rent in advance or rent that is guaranteed by someone who is in full time employment is an attractive element in itself.
Cons: students tend to move often that most other tenants due to the length of their course, plus they are at home more which causes more wear and tear on the property.
4. Housemates
Pros: sharing with one or more other people is very common and tend to warrant higher rents that result in a higher yield. Sharing tenants does not necessarily mean just students as professionals often live together as well, either way there are more incomes to rely on.
Cons: with sharers there does tend to be a higher turnover of tenants so additional costs relating to the change of tenancies, however in some cases when only one person wants to leave, the remaining housemates actively source the new housemate which saves you having to.