Renting Near Universities

[Daniel Trang]

For the investors in multi-unit/rental properties near Universities, 

What is the general consensus on the tenancy duration? Vacancy expectations?

My idea of renting to college students is that they won't stay longer than 4yrs for undergrad, high chance of moving out after a year, and their lifestyles generally bring destruction to the property...

How about renting to day job workers? Is there a higher population/jobs growth rate near universities?

[Andrew Johnson]

Daniel Trang I have a bunch of units near 4 universities and a chunk (not all) of my units are rented to college students. I can do 12 month leases but I plan on annual turnover. A bunch of my units are 1-bedroom so, when there is a party, it's not going to be there. They are nicer, rent for a little more, so someone is making a choice between "paying more rent" and "more beer money". All of that said, it's really inexact. It wouldn't surprise me if I found a hole or two in the wall at the next unit turnover. If you miss whatever the leading timeline is, it's hard to get students off-cycle (so to speak). My experience could be 100% different if I bought in the same area but a 5-bedroom home build in the 60's with a big backyard that is just begging for keg-stands.