Short-term rental property management is not just a popular choice for vacation homes. It is common in student housing too. The type of property can affect how the student rental properties are managed. This is why it is important to distinguish between long-term and short-term rentals.
So, how does short-term rental management differ from long-term rentals and what do these differences mean for property management? We examine the answers to these questions and much more, in this guide to short-term rental property management in student accommodation.
Rental property management is the handling of tasks related to leasing out properties on behalf of the property owners. Short-term rental property management includes managing vacation homes or student properties.
So, what tasks do property managers have to perform when they manage short-term rentals? It varies, depending on the needs of the property and the wishes of the property owner.
That said, the most common duties a property manager must perform relate to tenant screening and placement, rent collection, and property maintenance.
Note that property management fees will also depend on how many duties the property manager is assigned.
The short answer is, it can be both. Let’s explain.
Student housing arrangements can be short or long-term. For example, on-campus university student housing may offer students who are taking dedicated degrees long-term rentals. This is helpful for students studying abroad or who attend universities far from their hometowns.
Long-term rental students usually have to commit to a formal lease.
Student housing can also be considered a short-term rental arrangement, providing temporary accommodation for a few weeks or up to six months. This is ideal for students engaged in internships, student exchange programs, or shorter courses.
Students renting in the short term don’t have to commit to a long-term lease. However, they may have to pay higher monthly rates or a higher security deposit.
Short-term rentals are often preferable to long-term ones. Indeed, short-term student rentals mitigate issues prevalent in long-term student rentals. But what is the difference between long and short-term rental property management?
A long-term rental is usually suited to tenants staying for 12 months or more. However, 6-month student housing leases can sometimes be considered long-term rentals. Short-term rentals have a short duration, typically under 6 months.
Even if long-term tenants with 12-month leases do not renew their lease, the property will have a new tenant only once a year. However, with short-term rentals of 6 months or less, tenant turnover happens twice or more a year.
This is why short-term student property rentals often incur a higher security deposit. With more students moving in and out more frequently, the risk of damage to the property rises.
As for the higher rates, this is often just a way of making up for the inconvenience of having to continually find new students to rent the property.
Long-term rental tenants typically pay more affordable rates but they often have more responsibilities than short-term renters. A good example of this is utilities. Long-term student renters are often responsible for utility bills, whereas that is seldom the case for short-term arrangements, especially very short ones.
Both long and short-term rentals require a consistent cleaning and maintenance schedule. Repairs will also need to be done from time to time. And you’ll need to schedule an inspection before and after the tenants move in/out to determine the condition of the property.
However, all of these tasks need to be attended to more frequently with short-term rentals. With the higher tenant turnover, there’s more chance of damages leading to a higher demand for repairs. Fortunately, proper tenant screening and clear communication about property rules can mitigate this issue.
Property managers handle everything from property marketing and rent calculation to applicant screening, lease signing, and rent collection. They also oversee maintenance and repairs and any other tasks associated with the property.
In short-term rental property management, these tasks are mostly the same. However, because there is a higher turnover of tenants in short-term properties, applicant screening and lease admin happen more frequently.
Short-term rentals offer significant upside. They represent a $5.7 billion opportunity in student housing and therefore stand out as a rewarding investment property opportunity. However, student property rentals, like any other property rentals, can bring their fair share of hassles.
As mentioned throughout this article, these issues occur even more frequently in short-term rentals. Therefore, it is wise to let a professional property manager handle all the day-to-day tasks of the rental process.
A professional rental manager relieves property owners/landlords of the admin, legal, and other tasks that come with renting out properties. In doing so, owners/landlords enjoy benefits like these:
For those looking to manage their property themselves, short-term rental property management for students can be very rewarding, but it can also be hard work. These are the crucial skills necessary for the efficient management of short-term student rentals.
If you’re looking to hire a manager, screen them for the following attributes.
It helps to be well organized when managing a property. And in the case of multiple student properties, exceptional organizational skills are required. Property management software goes a long way to addressing the admin burden, with the more repetitive tasks being automated.
Communication is a crucial skill for any business, and this is especially true in property management. Clear and consistent dialogue is key to good tenant/property manager relationships. It instills confidence and trust and facilitates conflict-free resolution of rental disputes.
Student housing and vacation homes can both fall into the category of short-term rentals.
They both have a high need for cleaning, maintenance, etc. due to a higher turnover of residents/guests. Also, both a student housing management company and a vacation rental management company have to offer a friendly and professional service.
However, the need for high maintenance and hospitality is where the similarities end.
In vacation rental property management, property managers don’t have to provide the degree of support that student housing managers give their student residents. Students need ongoing care and a safe space where they can live, learn, and mingle with other students.
This goes beyond mere hospitality. If you are going to dedicate yourself to managing student housing, you should preferably enjoy working with young people.
It is often the responsibility of the property management team to market short-term rental opportunities in student housing properties. This is most often handled online, with a dedicated website for the student housing properties.
With the help of dynamic pricing tools, rates advertised on the student housing website can be automatically updated when necessary.
When filling their staffing needs, property management companies often look for financial skills. There are two good reasons for this.
Property management services usually accept and process rental payments from the students on behalf of the student housing owners. They may also have a hand in setting the rates for short-term rentals, according to seasonal availability and other factors.
Property managers may also be tasked with keeping track of the owner of each property’s rental income. Bookkeeping qualifications are thus highly prized, which is why many property managers equip themselves with these skills.
For those who are not naturally inclined to calculations and financial record-keeping, there’s bookkeeping/accounting software. Most property management software includes at least some basic financial facilities.
Property management means lots of admin, whether it’s leasing, scheduling maintenance and inspections, communicating with tenants and owners, are any of the other important tasks that need attending to.
Most of this will be done electronically via email or other direct messaging. Therefore, a fair amount of technical literacy is necessary. This also goes hand-in-hand with financial acumen, as bookkeeping requires both.
These tips will help you start your short-term rental property management with confidence.
Set yourself clear goals before embarking on any short-term rental property management.
Are you a property manager starting in the student housing market? Some owners prefer to be somewhat involved in managing their properties, while others do not. So, decide whether or not you will be offering full-service property management or half-service management.
Full-service management is a comprehensive service covering all aspects of rental property ownership. This includes tenant screening, lease documentation, rent collection, maintenance, and repair, and much more.
Half-service (or partial service) property management includes limited responsibilities. The property manager might only be in charge of marketing, applicant screening, and placement, and nothing else. Or perhaps they only handle rent collections, cleaning, maintenance, and repair scheduling.
The key to effective short-term rental property management is understanding the various regulations pertaining to short-term letting of properties. These regulations may vary from one town, region, or state to another.
Property managers must be aware of property rental regulations in the areas they manage, as these can have legal ramifications.
You may want to house international students, interns, or first-year students only. Perhaps you want to keep the student property co-ed, or perhaps not. Before marketing the property and meeting with potential short-term tenants, you should consider the market you’re aiming for.
Marketing is another crucial factor in effective short-term rental property management. It is how you communicate the property's availability.
Create a marketing plan that will attract the segment of the student renter market you have decided on. Social media platforms offer affordable marketing options, and thanks to their popularity with the youth, are more likely to be seen by students.
Short-term rental property management fees will be based on several criteria, such as whether a full-service or partial management service is offered.
The number of short-term student rental units and the average frequency of tenant turnover will also be a factor. Other criteria may also apply when calculating management fees, such as whether a flat fee or percentage-based fee is agreed upon.
Property management fees are typically 8 to 12 % of the monthly rent. However, this may differ in very short-term student housing rentals, and be based on a flat fee instead.
Flat fees can also differ, depending on the type and size of the property. This is because larger properties often need more cleaning and maintenance.
Student housing property owners can save on short-term rental property management fees by negotiating with the property management company. They may also choose a partial management service, opting to handle the marketing or maintenance and repair themselves as a way to cut costs.
Short-term rental property management offers a simple way to get involved in student housing. It offers property investors/owners many benefits and frees up their time to focus on other assets. And it offers property managers a niche that is highly sought after.
Whether you’re managing your own properties or doing so on an owner’s behalf, you need to understand the student housing market. College House provides in-depth insights for this market, based on relevant data analytics.
Contact us for more information or book a demo and learn why College House is the data provider top student housing companies trust.
