College Students vs Single Family?

Question

Hey everybody! This is my first post to the forum and was looking for some feedback on a particular issue. I currently own a home in a college town that i recently fixed up. It's in an incredible area walking distance to all the popular bars, restaurants, shops, etc. I'm moving out of state and posted my place to rent out on craigslist. Immeditetly, my phone was ringing off the hook. Its become very obvious that I have two decisions: Rent out to three college guys (who I know one of the guys) for $2000/month or rent out to a newlywed couple straight out of Med school for the listing price $1,400. Im torn on what is the best option and as this is my first time, I want to make the best decision.

Account Closed · Answer

@Ben Shipley why would the rent be so much more for the college guys?

The newlywed couple will be your easiest tenant.  They'll probably stay for several years at least, if they got jobs locally.

Even if your college guys don't cause noise problems with the neighbors, they will probably want to change roommates fairly often.  Roommates come and go, and it causes work and drama for the landlord.  The contract needs to be changed, there are arguments about security deposits, etc.  Your "friend" might want you to side with him on problems with the other roommates.  They will probably also be messier and cause more damage.

From a manager's perspective, I'd choose the newlyweds hands-down, especially if you want to manage it yourself from out-of-state.

I don't know how to discuss the discrepancy in amounts of rent without more info on that.  But, I don't see why they'd pay you $600 more per month.  Something is weird there.

Account Closed · Answer

Sue K.  If the difference is $600 a month it is a no brainer.  Go for the college students.

John Weber · Answer

I had a Landlord in college who I rented from who had a great business model.  For two years, my 7 housemates and I sent this guy money,  about 105,600$ total.  We paid rent in 3 month increments and were reminded when the three month term was coming up.  During the two years and even to this day, none of us saw his face or ever talked to him on the phone.  He was able to efficiently handle all communication over email and had a handy man stop by once a week for a few hours to do minor things around our house, and 2 town houses on the property.

I think you should read "Landlording on autopilot" by Mike Butler and  and go for the College renters.  If you put your ducks in a row and spend a little where it will go a long way, you will have success.