Same Rules When Renting in College Town?

Question

I was wondering if you would evaluate a rental property the same way in a college town where you have new tennants usually once a year as you would when targeting regular tennants.

In New Brunswick, NJ, landlords do yearly leases june 1 to june 1, and the rents are very high compared to regular rentals to non-college kids.  They basically charge 400-500 per person, and squeeze as many people in the house as possible.  The houses also are not maintained the best and not of best quality b/c frankly college kids aren't mainly concerned about the look of a house.

Robert Mack · Answer

I am actually meeting with my old landlord on Friday to get some advice, pick his brain!... I am going to make up a list of questions for myself so I don't look like a dud when I meet with him... any specific questions people think I should ask?

Les Michaelson · Answer

Notes
Lease Aug 1 to July 31
If you haven't filled a vacancy by Aug 1 you still have 1 month before school starts. After Sept 1 things slow down.
Charge a sublet admin fee if you can.
First year students are more likely to bail mid term than 2nd yr +
Get parents to co-sign
Be prepared for May bail outs
Try to rent to professors  and infrastructure workers too
Rents are usually higher in university areas of cities

Robert Mack · Answer

I'm actually in the process of setting up a meeting with my landlord when I was renting in college.  He has a portfolio of around 9 units which all rent to college undergrads.

All leases I have seen in my college town are 12 month leases, so the summer months, even if unoccupied are being paid for my the tennant.  The leases go from June 1st to June 1st (or alittle before to make time for cleanup and such) Also my landlord used a portion of the security for any cleanup needed.  We cleaned ourselves so it was not as bad as other I heard but still took a good chunk out.

Jon Holdman · Answer

A few thoughts.

They are going to be messy.

Vacancies are going to be high in the summer.  When looking at college rentals, I do the math assuming only 10 months year of rent, then subtract normal vacancy allowance.

Get Mom and Dad on the lease.

Most leasing activity happens just once a year, roughly late spring for leases starting in the fall.

Jon