Students, in general, are a reliable group when it comes to ensuring that rent is paid. Survey after survey has shown that they take their responsibilities seriously and do not rely too much on The Bank of Mum & Dad. That is not to say you won’t experience problems. Students are typically desperately short of cash and may sometimes pay their rent late or ask for deferment.
In order to reduce the number of rent arrears and stop headaches for the landlord and tenant alike, there are several things you can do to make it easy for your student tenants to pay.
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Digital Wallet Payment
Are you the sort of landlord who expects a cheque on the table or in the post every month? Could you benefit by using other methods of payment? Direct debit or standing order is often the chosen method of payment, but some students don’t like it as it falls on a certain day and if it happens to fall before they get their grant or wages, the bank will reject the payment. This causes problems for you and for them. Using digital wallets such as PayPal can permit them the flexibility that students sometimes crave.
Don’t Insist on a Single Payment Method
Talking of flexibility, with so many ways to settle bills these days, students will be au fait with most of them. If you give your student tenants the right to pay how they please, that will give them the financial flexibility they require. They may sometimes wish to pay by credit card or by digital wallet, another time cash. Sometimes the parents may send you a cheque or cash. The attitude here should be that payment of rent is payment of rent.
Be Open as a Landlord
Maintain a strict relationship; after all, these students are not your friends – you are engaged in a business transaction. However, there is no harm in being open to their problems. Impress upon them the need to pay their rent and on time, but be flexible towards their financial situation. It is understandable to be unhappy that you don’t get your rent on time – especially if you have a mortgage to pay, but being flexible towards student who are otherwise model tenants can work in your favour. Just make sure they don’t take advantage of your good nature.
Never Refuse a Payment
Refusing to accept these methods will make you look rigid and, should it come to a court case, a judge will not look favourably on your for refusing payment in another form because it’s not the usual method or because it is part payment. Any attempt to settle outstanding arrears on the part of the tenant should be accepted.