College student renting
I am looking to rent out my home for college students at a school that is a 6 min drive from here. I would love to hear any thoughts on this on whether it is a good idea. Any tips are appreciated
Hey Jeanette! In my opinion, I believe renting to college students is a great idea. The main thing for me is a low vacancy, I won't go to say it won't ever be vacant because that just wouldn't be the truth, however, it would be low. The demand is constant and if you are willing and able to deal with more frequent turnover, I say go for it. You will just have to know that it may take a bit more work in screening tenants but again, if you're willing and able to do it, it can be lucrative.
There will be people who say to be weary of it because of turnover or the threat of damage and ruining aspects of the property but if you can tolerate it or find tenants you feel will take care of it well, it could be a good route to go on. Of course, there is no right and perfect answer and it all depends on you and what you want to handle. And as cheesy as it is, REI is about getting out how much you put into it.
Good luck!
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Real Estate Agent Texas (#786340)
- (979) 450-3580
- [email protected]
Thank you for your response. Any recommendations for furnishing? Is it recommended to have it furnished to reduce the amount of moving damage it can cause?This home is also a 2 minute drive to a hospital, is it a good idea to have traveling nurses rent out?
I think that is a good idea. The only thing I would potentially be weary of is damages to the property. Other than that it seems like you have a lot going for the property considering the proximity making it very desirable. Hopefully keeping it rented. Also I would try to account for the summer months and see if they are certain to commit to a 12 month lease. I hope this helps!
Hi @Jeanette Land, I've been using my first SFH purchase as a college rental for a few years now and it's worked out very well for me. However, I have to agree with Tatum on a couple things... the turnover is something you have to be prepared to deal with. In my experience, best case scenario you get 2 years out of each group as they're usually only looking to rent for Junior/Senior year.
Also, to Tatum's other point, the risk of damage is always there because at the end of the day, they're college students. Some are only there to party and don't understand the responsibility they're taking on when signing these leases. To mitigate that, use your best character judgement when meeting these students and you can likely get a feel for who will be the best fit for your situation.
One thing I'd like to point out is the funky timing for marketing your place. In my case, students are actively looking for housing up to a year in advance with Sept-Nov being the busiest time. In other words, I already have tenants for the 2023-2024 school year and I'm now getting ready to market my place for 2024-2025 and expect things to get busy in the next month once classes start. I don't know why it's like this, but it is in my case. May be something for you to think about and double check whether or not it's the same in your area.
The upside to this is that your returns can be great using a rent by the room strategy as long as you are prepared for the specific needs of the market. Hope this helps in any way and happy to share more if you ever need!
Quote from @Jeanette Land:
Thank you for your response. Any recommendations for furnishing? Is it recommended to have it furnished to reduce the amount of moving damage it can cause?This home is also a 2 minute drive to a hospital, is it a good idea to have traveling nurses rent out?
We didn’t and probably wouldn’t furnish it just because of the high turnover and damage that can be done. From experience as an owner and a student, I think most would want to bring their own furniture themselves with the exception of appliances like fridge/freezer and washer/drier.
I think traveling nurses would also be a great opportunity, I haven’t had experience but from what I’ve read and heard anecdotally I think it’s a viable option. It obviously comes with a little different kind of maintenance and having to furnish it would then be on you. But again, all up to what you’re willing to deal with.
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Real Estate Agent Texas (#786340)
- (979) 450-3580
- [email protected]
Where do you post about your rental for college students? I reached out to the college near our house to post on campus, but is there a better way besides that method or Facebook?
I use jumpoffcampus.com for marketing. They partner with schools across the US to help students find housing. I think the partnered schools are somewhat limited, but take a look and maybe the university you're looking at is up there! A quick google search on student housing sites in your area might help as well.
When I go to the site you mentioned, it doesn’t take me anywhere.
Hmm, that's strange. Maybe try to a different browser or something? Not sure why it's giving you issues.
Good morning Nick Gray. How does your process work choosing students in your property? Can you paint me a picture of what you do to create the best experience for yourself and then?
Quote from @Jeanette Land:
Thank you for your response. Any recommendations for furnishing? Is it recommended to have it furnished to reduce the amount of moving damage it can cause?This home is also a 2 minute drive to a hospital, is it a good idea to have traveling nurses rent out?
I have 2 student rentals and we do not do furnishings. When i was a student and renting in the same neighborhood we were not given furnishings so depends on the area i would say. If all other student rentals have furniture you'd want to match the market.
awesome idea and here are some big tips:
- know that the leases are often end of aug / early sept, through end of the school year. so some people who only do this strategy, see that they have high vacancy in the summers. plan for additional vacancy % in your numbers, OR try to have your leases run 8/1 - 7/31.
- if you're renting by the room vs renting the whole unit to a group of friends, have the following written into the leases: designated cabinets, designated fridge space, designated laundry days, overnight guest rule (and what's considered 'overnight'), + large gatherings rule.
- remember that you'll be paying all utilities if you rent by the room, so factor that into what you charge for rent, and consider using remotely-controlled nest thermostats so they can't jack the heat up beyond what any normal person would pay for (if you're in a cold area). the same could be said for a home with central air in a warmer climate.
- consider baking into the rest biweekly housekeeping, so that you know that the property is being kept up with (prevents pest issues), and you won't have to deal with any quarrels over who's cleaning the common areas more than who.
- always have the parents co-sign the lease.
- make a manual for them. what would your own kids be calling you about when they first move out on their own? i once heard on a podcast about this, that the guy even included 'how to know if your lightbulb blew out and how to replace it.' it's not common sense to many kids who lived at home up until then. this will reduce headaches for you. how to know if a toilet is clogged and how to unclog it, what to do when smoke detectors go off from cooking...
I am planning to rent out to college students. This post is very handy. Thanks!
I live in a college town and I've done this before. If I were you, I'd rent to teachers or staff, meaning adults. Renting to college kids sounds great in theory but if you want to preserve your property, you might want to consider more mature clientele. Most schools have new teachers and staff coming every year just like students so just something to think about. (They also tend to stay longer.)