Renting in a college town

[Matt Hintz]

Hello, 

I am looking to purchase a rental home in a college town and have thought about the idea of individual leases (I have seen this many times at apartments around the area). Instead of listing a 4 BR house for, let's say, $1,500 a month, I list it at $450 per bedroom and am able to collect a little higher income each month, while protecting the renter from paying extra, in case a roommate unexpectedly moved out. 

Seems like it could work, but wanted to get some feedback. Is this a common practice? Or is this only used by apartment complexes?

Thanks.

[Peter Tverdov]

I specialize in student housing. You need to know what your local housing laws are. What you're proposing could be considered a boarding house. Even if it were allowed, I tend to shy away from that, too many headaches. Better to put them all on one Lease and get one payment for rent each month. Make them collectively responsible for rent. They have friends, they'll find a group. If you're in a pinch, then filling it by the bedroom is your last resort IMO.