If you own a rental property near a university or college your first thought might be to rent it out to them. But there is a matter of concern for many landlords if they should rent out to a younger, often, less mature individual. At the same time, they don’t want to miss out on a great chance to charge competitive rent. It is definitely a decision worth weighing the pros and cons.
Pros when renting out to College students
- With mom and dad supporting them, you can feel confident you’ll get rent on time on a consistent basis.
- With a University or College nearby there will be demand from students in particular. Knowing this, you can charge a competitive rate due to the housing demand from students.
- Many Universities offer programs to help market your property to help you get a steady flow of prospective tenants.
- Students may be less demanding and not be overly concerned with minor issues.
Cons when renting out to College students
- College students can stay at the same property for several years (during their time at school) but many may only stay for a year or less. This leads to more time involved in tenant screening, marketing, etc.
- They’re a younger individual and may be less mature. That said, they may not care for the property the way an older, more mature person may care for it.
- There is the obvious concern for property damage. This may be a result of a party or simply not properly caring for their rental space.
- College students may struggle to pay for rent if they’re without a job, financial support from their parents or a loan.
Despite the cons listed above, many experts believe that renting to college students is, generally speaking, a good idea. Granted, there may be issues you’ll need to deal with that are unlike those of an older, more mature individual, the pros can outweigh the cons if you do your due diligence.
How to minimize risk when renting to students
- Require the student to sign the lease as well as his or her parents or legal guardian(s). By having them on the agreement as well, they may think twice when it comes to maintaining the property and having student parties.
- Put certain rules into writing like the student halls and dorms have. For example, no burning candles, fires, charcoal grills, weaponry etc.
- Do not pay for utilities. College students are often on their own for the first time and may not realize the true cost of leaving the TV and A/C on all day until they see the bill.
- Check in on the property each month. If you go months on end without seeing the property a small problem may turn into a very big problem. Consider hiring an apartment rental management company to help keep up with the day to day communication and check-ins as well.
Should you choose to rent out your property to College students, consider using the list above to save you a lot of stress and, potentially, additional costs.