I wanted to share an idea that can be a great real estate investing revenue generator. I have been asked the question of: Can you make money renting to exchange students? The first point I want to share, is that most people choose this model to provide and share an experience with a student from another country. That being said, there is a revenue opportunity that I want to share.
You can Google search exchange student programs and many agencies and versions of the idea will show up in the search results. The challenge from a strictly cash flow perspective, is that the requirements are higher than just renting a room as a student room, and the payment is generally a bit lower considering the extra responsibilities.
The biggest difference between just renting a room to a student and a student exchange program, is that with a student exchange program you become a host. What that means is that the exchange student will become part of your family for the duration of their stay. That may not mean you have to spend every minute with them, but you will have to watch out for them. You will also have to make sure they are fed. There are programs for high school students as well as post secondary programs. The stay could be short (like a week) or long like a full degree program. The basic idea of most of the exchange programs is to have a little left over at the end of the month, after you factor in additional utility and food costs.
The payment range will vary based on the type of accommodation you provide, such as a room with a private bathroom. The type of services you will provide, such as three meals per day, or taking the student on excursions. Another add on could be providing language lessons.
Pros
- The experience of sharing your culture / family and home with a person from another country.
- If you use an agency the student will be screened by the agency, which reduces your risk of a bad tenant.
- The money will be paid by the student to the agency and then to you, so as long as you deal with a reputable agency, you do not have to worry about not getting paid rent.
- Potential to add revenue generators such as language lessons.
- You can likely just rent an unused room in your house, so no need for renovation expense, just sign up to an agency and start making money.
- You can rent a room in an apartment or a house (provided you have correct permission from your landlord, as well as proper insurance).
Cons
- The net income (once you deduct food cost) will be lower than renting a regular room
- You will likely have to sign up and get screened through an agency (which could take time, be personally intrusive, and cost you money)
- You will need to share the personal space in your home with the exchange student. This could include kitchens, bathrooms and other common areas.
- You will need to watch out for their personal safety (this could be challenging if you need to keep an eye on a teenager).
- You may have to deal with a personality conflict or other challenges, such as home sickness, physical illness, injury, School problems, Food problems, or other daily problems that a student may face.
Until next time,
Design your landlord experience,
Michael P Currie
Click the following links for more information:
How to become a Canadian Home stay Host?
Why I host International Students?
Search For The Perfect Language Exchange or Homestay?
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