Is admin holding back property manager from profitable student rentals?
By: PayProp Canada
But why are property managers not always advising landlords to invest in student property? Part of the issue could be the extra burden of collecting and processing rent money from multiple sources per property, according to PayProp Canada.
What issues could property managers face with student rentals?
Traditionally, property managers might steer their clients away from student rentals due to the higher turnover of tenants, the shorter tenancies, the higher levels of wear and tear on the property and the added complexity in collecting rent money from each student. However, smart property manager could look to take advantage of the higher income provided by student rentals in university towns.
"Student rentals have proved to be attractive for smart property managers as they offer higher returns for investors and more opportunities for property managers including furnishing services and regular property repair and maintenance,"
"The biggest issue the property managers we speak to face is the time it takes to do all the extra payment admin associated with student rentals. Property managers could be faced with sometimes half-a-dozen or more rent payments for each student property. Fortunately, PayProp can automate the rent collection process and save dozens of hours of admin time."
PayProp clients master student rentals
One property management firm making the most of the student rental market is PAD Rentals in London, Ontario. One of the biggest drains on employee time was collecting and paying out rent money – with the process often taking the entire month. "The time we spent collecting, matching and paying out rent was a real burden on the company," said Chris Lesky, owner of PAD Rentals.
"We were looking to expand but could not manage any more properties using our old processes. With PayProp's automated rent collection platform, we now manage to have 80% of rents collected and landlords paid within four days, which has allowed us to take on more student rental properties for investors."
More opportunities for student rentals
There is a steady increase of Canadians attending university, however the long-term demand for student rentals across Canada is also driven by a large and increasing number of international students, according to the Financial Post.
"No investment is recession-proof, but with an unstable global economy, property investors will be looking for safe harbours during these turbulent economic times. With PropTech solving the admin for student rentals, property managers looking to secure good returns for their investors should take notice of the high demand for student rentals across Ontario," concludes Samodol.
PayProp was launched in 2004 and has grown quickly to become a leading processor of rental payments and back-office automation for the property management industry, serving a large and diverse customer base of property managers and agents. Our platform sets the standard for speed and accuracy of transaction processing, posting, reconciliation and pay-outs, offering property managers complete transactional control and regulatory compliance. PayProp is part of the Humanstate Group, an international private technology services group with subsidiaries in the United Kingdom, United States, Canada, Switzerland and South Africa.
Visit www.payprop.ca for more.