Renting to multiple college students

Renting to multiple college students

IT Director/Service Manager · Lubbock, TX · Member since 2015 · 87 posts · 24 votes

Howdy

 I live in Lubbock and the city ordinance states no more than two unrelated people can occupy a house together. I believe most college towns have similar ordinances. I hear people all the time say you can get better rents because 3 college students can occupy a house and will pay more because it is split three ways. I know it happens here all the time but how can you actually put 3 people on the lease if it violates city code? Is it the landlords problem or is it the renters problem? I know it probably isn't enforced unless there is a complaint. But what if you had three renters and someone complained because of noise or other disturbances (These are college kids after all)? It just seems like a mess to me. 

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Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
10y

@Michael Fortier a couple of thoughts:

1 - have the students form a" partnership" and follow your corporate housing laws. Let the partnership be the "relationship". 

2 - Check if your city charter is set so your state laws supersede local laws. If so, follow your state laws.

I'm not a lawyer - obviously, but I hope that helps.

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  • Investor · Phoenix, AZ · Member since 2014 · 51 posts · 14 votes
    10y

    @Matt McConkey do you know what is the limit in phoenix? Iam looking to buy a 5 bedroom house in Tempe with some crazy cash flow but I am scared from these threads Iam reading. I haven't been able to find the phoenix law for student rooming houses. Thanks

  • Rental Property Investor · Phoenix, AZ · Member since 2016 · 23 posts · 11 votes
    10y

    @Andres Rossini 

    I would not worry if I were you. I am also looking at buying a second 4+ bedroom home in Tempe to rent to students. I graduated from ASU last year and while I went to school lived in 3 different rental houses where there were 4 or more unrelated people. There is a safe way to do it, but I think only 2 or 3 of the renters can be on the lease legally and any additional residents are documented differently. I remember one property management company we used, KRK Realty. I would give them a call and they should be able to give you some more info on how they set up leases for college students. Hope this helps. 

  • Rental Property Investor · Phoenix, AZ · Member since 2015 · 222 posts · 126 votes
    10y

    @Andres Rossini

    I agree with @Zack Niemeyer on this one. I would consult with a PM company in Tempe. I was referring to the laws in Illinois, not in Arizona. 

    A quick Google search will get you with PLENTY of PM companies who would love to help you out! 

    Nice work on finding a great cash flowing property in Tempe!

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