Background checks necessary for student housing?

Question

Hello BP!  I am a newer investor and have added a multiplex recently to our portfolio that will be rented to college students. I want to ask whether or not other landlords or property managers are running credit and background checks on college students.  We did not with our first tenant group on our SFH but with this multiplex, I'm wondering if we should.  Any thoughts or advise for these college student rentals  would be much appreciated!

Peter Tverdov · Answer

I tell the same stupid jokes every year. Half way through the tour for students I say..."also, this is not a party house. No parties are allowed. If you do allow a party (pause for a bit)...you better invite me." 99% have burst out laughing. One year a bunch of guys go, "okay yeah! That's awesome!"

Needless to say they were immediately rejected in my mind lol

Kristie Eddy · Answer

@Edward Lawrence Thank you for the help! Ok, sold.  We just added a parent co-sign to the lease and had our attorney review. Great point!

Emily Rose · Answer

With our SFHs in college areas, we still get everyone to fill out an application. You still want to check for crimes, evictions, etc. Some college students hold jobs and can qualify on their own, but for the most part, we get Guarantors for each student and run a complete credit/background check on them as well.

David Dachtera · Answer

A background check is more than just a credit check. It includes public records, police records, even check with their high school or college prep school and get whatever information they can legally release to you.

Edward Lawrence · Answer

I think background checks are a must, for college students I always recommend a Guarantor (parent?) as well just to ensure the student will behave since their parents are also involved.

Kelly N. · Answer

About 40% of my tenants are students, I do background checks on everyone.  I have seen some with credit issues, past criminal charges, and evictions.  Previous landlord references are helpful, current ones usually are but may lie just to get rid of a bad tenant.

Peter Tverdov · Answer

I manage student rentals. Never do background checks, there is nothing to check. They have no credit. Typically I need to speak to their Landlord, if Landlord approves they're fine. If no prior Landlord their parents must co-sign. Sometimes I don't do a co-signer but that's not the norm. Regardless, they need to follow all my directions during the screening process (show up on time, confirm appointment as I requested, not say anything stupid) and I value if they're in studious majors (business schools, engineering, sciences, etc) or sports. No frat guys majoring in communications. I also set the tone when I meet them. I tell them I am strict, will visit the property monthly for cleaning inspections and do not allow parties. That turns off the riff raff who want to treat the place like a glorified frat house. I do well at placing students.

Kristie Eddy · Answer

Hahaha that's amazing!! That would keep us young! ;) @Peter T.

Kristie Eddy · Answer

@Peter T. Great point about 'interviewing' the tenant when you meet them.  You can tell a lot about a person through that face to face interaction.  Thank you for the advice Peter, I really appreciate it!

Kristie Eddy · Answer

@Kelly N. Good point about past landlord screening.  We actually had not done that prior but wow, we are getting some amazing tips. Feel like we got lucky with our first group but are much better prepared now.  Thanks for responding, I really appreciate it!

Background checks necessary for student housing?

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