Trying to Rent Out Property in College Town During COVID

[Nathan Fridley]

Hello friends, have a rental listing strategy question for you all. I’m currently under contract to purchase my second rental in a major university college town that has basically gone completely virtual for fall semester. This will be my first unit that will likely rent to college kids. Knowing the rental market is likely soft until at earliest spring semester but most likely next summer, what should be my listing strategy when I hopefully close in mid-Oct? Should I list at full price based on provided rent roll at standard 12-month term ask or should I try to get really aggressive out of the gate to get someone in for 6-8 months at say a 25% discount of normal rent just to generate some income until summer when things hopefully get back to normal? Even at discounted rent, I would still have positive cash flow. Any and all advice would be appreciated.

[Brett G.]

@Nathan Fridley

In the absence of a demand from students, I would consider lowering the rent and renting for a shorter term, long enough to get you to the next cycle of renting to students at the normal student rental rate.