How do students get through referencing?

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    How do students get through referencing?

    Again out of curiosity because some students aren't working or are working a small part time job which obviously wont be sufficient enough to cover the cost of the rent. How did this work? Guarantor? I apologise if I sound silly but I have no clue how this works but you always see properties for students and was just wondering.

    #2
    It is usually on trust (perhaps with a guarantor). The tenant in turn pays a much higher rent (yield is at least double for student rentals) to offset the risk.

    If it were possible to evict a non-paying (or property-damaging) student tenant easily and quickly and cost-effectively then student rents would not be nearly so high. The good and honest students pay the price (higher rents and lousy properties).

    Students also get money from loans.

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      #3
      They dont. The parents usually have to sell their souls to the devil (well it feels like that) as guarantors. Of course there are some students who have earnings, even savings and they have access to loans. Also in a few years time they are likely to be earning so if there are problems you can get your money back if you can keep track of them. Student tenants can be an unusually safe bet for a landlord. The rent should be less to reflect this but generally isnt.

      "Students" includes postgraduates as well as undergraduates.

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        #4
        Anyone contemplating letting to students should insist on a guarantor with the financial means to pay the student's rent and any other debts relating to the tenancy, if the student cannot or does not do so. Usually this is a parent, but parents of international students aren't always appropriate choices, as they are unlikely either to be employed in the UK or own property here (the usual safeguards). In the case of international students, their universities sometimes agree to stand Guarantor or their parents agree to put up six months' rent in advance.
        'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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          #5
          The student market is different in almost every way to the rest of the rental market. Whether they have the money to pay the rent is usually the least of my concerns as its normally the parents who pay or their student loan as has been said. the bigger problem is that 80% of mine have been foreign students and if they drop out of the course and they/their parents choose not to honour the agreement the landlord is stuffed as its almost impossible to get a new student to fill the place once everyone has their accommodation for the year. On the other hand, a student who causes problems in the house or is persistently behind with the rent often gets away with it more than other tenants because eviction would mean loss of rent and probably forcing the student to give up their course. There are upsides too of course.

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            #6
            Drop out rates are pretty low in many places https://www.timeshighereducation.com...-disappointing Those who drop out often do so in the first year, when they are probably in university accommodation anyway.

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              #7
              I think the drop out rate has to depend on the course and the college. My student house was for a Chiropractic college which had no accommodation of its own and the course was very tough so had higher (but not very high) drop out rates.

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                #8
                In France the guarantors are usually the parents, unless the students are older or working or having enough savings. As long as there's a proof they'll be able to pay rent. The good thing is that they normally share the place so if there's a problem with only one of the tenants it's not the end of the world.

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