I recently purchased a duplex for College Student Rental. I am really not sure what to do in terms of lease and security deposit. The students usually arrive in town around the middle to end of August and leave around the middle to end of May. However, I really don't want to lose June, July and August rent every summer. Has anyone ever done a student lease for 11 months? This would give me one month to get the apartment ready for the next students arrival. Also, do you require more than one months rent (security deposit) to cover damages, repair and cleaning?? Can anyone who rents to college kids give me any tips or advice on what has worked for them?
As a college student myself, most of my friends who live on campus in a rental remain there even in the summer. Not every student is this way but often times the students don’t want to go back home. Finding those tenants would be more difficult. I would also require a higher security deposit because of the inherit risk that college students bring. Every college has a different diversity so what I experience at university of Cincinnati will be different to that of a college in New York. I hope this helps
@Mary Fitzgerald This post may be of use to you. Lot of good posts from landlords who rent to students:
Whatever you do get a parental guaranty! I have a client who rents dozens of places in Boston and always gets a parental guaranty (with full application so you know their assets). Many times have had to go after the parents to get paid.
You could do month to month with a higher monthly rent to make up for the lost summer months and then use the down time to make any repairs.
Also ask them out right if they want it for the full year or not. Someone coming in as a freshman may not want to look every year for a new place.
Yes, I think that the majority of the students here return home for the summer.
I appreciate your input, Thank you!
Will and Doug, Thank you great information and advice. Greatly appreciated!
When I worked in student housing, the leases were mid-August to July 31st. The only way to get out of the lease was to find a sublease, so you're always guaranteed the full 12 months. Students in dorms, moving to the area, etc took over the leases for students who didn't want to stay in the summer, but it was tenants responsibility to always find a sublease, and they were charged $250 to move out early, and $50 to turn the unit.
The payments were also broken up into "12 equal installments" rather than 11 1/2 months for rent.
We didn't require a large security deposit, just had "move out charges" upon move out, which I did not completely agree with, because of the disputes, but overall most students or parents paid.
This was in Fort Collins, Colorado. I hope this helps.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.