So you want to rent to college students?

[vc_row][vc_column][vc_single_image image=”12388″ img_size=”1000×400″ alignment=”center”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Renting to college students can be an incredibly stressful proposition. On the one hand, if you’re located near a college or university you’ve got a never-ending supply of willing tenants. On the other hand, college students are not known for their ability to take care of the properties they call home. So you might be asking yourself, is it even worth the effort? With the high demand for housing near most campuses, you may want to give it serious consideration before deciding it’s not for you. 

Although it can become a serious headache under less than ideal circumstances, it can also become an incredibly lucrative source of income if you keep a few things in mind.  

Subsection Title: Stable Monthly Payments 

To begin with, monthly payments may be more stable than you at first think. It’s easy to imagine your would-be college tenants perpetually forgetting their rent while they spend the money meant for you on parties that ultimately degrade your house’s value. This is, of course, a very real worst-case scenario. The good news is, it’s far less likely that a young student will be making payments than either their parents or financial aid. So if you’re worried about payments being made by someone who’s just figuring out how to balance their checkbook, it’s more likely you’ll be negotiating rent with a book keeping veteran. 

Subsection Title: Charge More Per Month 

The irony of having college students as tenants (especially close to a college) is that you can in many cases charge MORE for rent. This might seem completely counter-intuitive, but the fact is most college students are expecting to share costs with roommates. Which means you can charge more on the whole as long as each tenant is paying a small enough slice of the overall pie that the cost stays within their overall budget. It’s ultimately a win-win for everyone involved. 

Subsection Title: Don’t Worry About Marketing 

Marketing your vacancy isn’t as necessary for college towns, because there are ALWAYS people looking for a place to rent. You may even get away with word-of-mouth business from tenants moving out. 

Subsection Title: Lower Upkeep Costs 

You can typically save time and money on keeping your house in order because college students aren’t as demanding as other tenants. They don’t usually care if the walls need a new coat of paint, or if the refrigerator makes an odd sound. What they care about is that everything generally works, and they are close enough to campus to make their stay with you conducive to their overall college experience. 

Subsection Title: Think Like A College Student 

If we’ve sold you on the idea of owning property in a college town, it will help you navigate your interaction with future tenants if you start to think about your property from the perspective of someone at a university. We recommend the following steps: 

1: Find out who’s actually paying rent. They likely aren’t going to have rental or credit history, but find out who’s actually paying the rent before you dismiss them offhand. If it’s a parent, or if it’s coming out of their overall allowance for housing through financial aid, keep that in mind as you outline the terms of your payments. If it’s a parent, ask if you’ll be dealing with them directly, or just through the student. Consider requiring a cosigner to save yourself future headaches if rents aren’t coming in on time. If you’re concerned about late or incomplete monthly payments, see if there’s a way for you to implement an online payment system. 

This is an area where property management companies can excel in bridging the gap between you and the people renting your properties. The idea is to make it as easy as possible for them to pay their rent well within the time period of your terms. 

2: Don’t expect maintenance to take place in your absence. Many experienced renters will take initiative when it comes to light bulbs having gone out or leaky pipes. Don’t expect your younger tenants to give such attention to detail. This is why regular inspections by a property management company like Blackstone Management can become so vital for maintaining the orderliness of your property. 

3: Don’t expect utilities to be used sparingly. Younger tenants aren’t going to use your central heating and air conditioning sparingly. Utilities are not likely something they’re very familiar with moderating. This is another reason why regular inspections with younger tenants are so important. 

Subsection title: Plan for the worst and build for success 

While there are many red flags when it comes to renting to college students, we think the potential rewards far outweigh the risks involved. Especially if your property is ultimately an investment property. Blackstone Management would love to help you navigate the many options, so please let us know how we can assist you in making the right decision for your ultimate property portfolio!  [/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_cta h2=”Have more questions or need help with your rental property? “]Fill out the below form or give us a call (240) 349-2117 or check out our contact page[/vc_cta][/vc_column][/vc_row][vc_row][vc_column]