How much rent to charge 3rd-party student housing service
I'm looking for feedback about renting to a third-party student housing provider. Specifically, I'm interested in how much they might pay vs the market rate. Has anyone worked with a company like this?
I have a 6-bedroom house very close to a training program for which this company arranges housing. It works like this:
-The company signs a long-term lease, usually for apartments
- They place students at 1 or 2 per bedroom
- They include all utilities and furniture
- They allow students to rent for the length of their training program (varies) vs having to sign a lease with a standard term
My house is considered a "premium" offering. For this tier, they're taking in just over $2k per bedroom.
Right now, they're renting 2-bedroom apartments in new construction complexes with pools, gyms, etc. Those are a 10-min drive to the school, whereas mine is 2 mins.
My property has a private inground pool, huge yard, deck, trees, stream. It's very private but also close to a shopping center with restaurants, barber shop, etc. The bedrooms are very large compared to those apartments.
The math:
The rent on those apartments is about $2500, plus utilities and furniture rental. The total might be $3300.
They're charging the students around $4200.
So they're making around $900/mo, or $450 per bedroom..
My house:
I have 6 bedrooms, so the company could potentially take in $12,500 per month from the students.
Let's say I provide furniture and utilities,
If they want to make $450 profit per bedroom, at 6 bedrooms, that's $2,700 ($450x6).
That would mean I could ask for $9,700/mo.
That's about twice the rate for college rentals in this area.
I could sweeten the deal, give them more incentive to depart from those apartment complexes, and ask for $9k.
I don't want to sell my house short, but I don't want to scare them away either.
That's why I'm here asking if anyone has experience with this type of company.
There are plenty of college rentals in the town, but I have limited competition because this property is unique, like a mini retreat, and it's very close to the training facility. Plus, it's already set up as a short-term rental.
.The company sent a guy out to see it and he loved it, but we haven't talked money yet.
I know I probably answered my own question, so maybe this is a reality check.
TIA
P.S. Yes, I know students are rough on houses. An extra $4,500/mo can pay for a lot of repairs!