Need student lease agreement that allows for parent co-signs

9 Replies

Hi all!

We have a former STR that we had to transition to LTR. (That's a story for another day.) But we found students who need a furnished unit for four months and can pay a higher price for such. I had a standard lease agreement given to me by a fellow landlord here in TN. However, with this being students, we are going to have their parents co-sign and I'm thinking I need a different agreement.

Also, we have this unit still fully furnished and equipped right down to the linens. When we were doing Airbnb there was a damage waiver insurance that the tenants paid for via Airbnb. I'm wondering if I need to do that in this scenario as well and how best to go about that. We are getting a months deposit, which could likely cover all damages.

Any suggestions? 

Anyone have a lease agreement that would fit this scenario? (I am in Nashville, TN btw.)

Any other advice you think I should know?

Thanks in advance!

We use a standard form lease here, so there is not much I can provide you in way of a lease.  

However, I would advise that you use separate guarantee agreements with the parents rather than have them as cosignatories to the lease.   

If parents are signatories to the lease, they are entitled to the same rights as any other signatory, including access.  Nothing kills social cohesion among housemates more quickly than helicopter parents letting themselves in on Saturday morning.  Having helicopter parents as "effective" tenants can be trying experience for the landlord as well.

As guarantors, the parents are not signatories to the lease, but guarantee to financially backstop their child's obligations under the lease.   As a guarantor the only right the parent has is to be apprised of whether the tenants are meeting their financial obligations and the have the obligation to open their wallet if little Jane or Jonathan defaults.

1(506) 471-4126

@Laurie Chimento Were you not able to renew your Airbnb type 2 permit? Or did you just not want to fight with the city anymore?

@Luka Milicevic , we had the unit with a property manager who never completed the process to get the permit even though they said they would get it. They got several steps done and then dropped the ball over the Christmas holiday last year. We discovered this once the city wasn't issuing any new ones. The unit was also only performing to about half of what they had projected. No one at the company can tell us why. It was totally a "manage the manager" situation. Learned some tough lessons in that extra $11k-$12k extra we put into furnishing the unit based on their projections. Hurt the ROI, but hopefully we are wiser on the other side of this.

@Laurie Chimento I rent a fully furnished apartment down to the linens on the beds and dishes in the cupboard by the semester and I often have parents who are paying the rent and need to sign as co-signers. In addition, the furniture in the apartment is new and very high end. Lately, we've had more well-off parents wanting to rent the apartment for their college student than we've had visiting professors who were interested. This has caused us to start requiring a security deposit in hopes that the students will be a little more mindful of the expensive furnishings. We don't plan on nickel and diming them, just hoping to avoid gross misuse. 

I use Sabbatical Homes to advertise and Lease Runner to create leases and other required Massachusetts rental documents that are signed by all parties. Lease Runner has leases & related documents for each state. Massachusetts has some very obscure laws governing rentals and security deposits. I've been very impressed with Lease Runner's ability to capture these obscure laws down to the required font size! 

@Carolyn Fuller , one more question, do you only do the credit/background check on the tenants themselves? Not the Co-signing parties?

We actually haven’t done credit / background checks for any of our tenants but if I did run a credit check it would be on the person paying the rent which is generally the parent.

Originally posted by @Carolyn Fuller :

We actually haven’t done credit / background checks for any of our tenants but if I did run a credit check it would be on the person paying the rent which is generally the parent.

We pull a credit history and run a background on the tenants themselves.  On the guarantors {as stated above, we do not use co-signors as it gives them the rights of a tenant}, we pull their credit history to ensure they are able to fulfill that rôle.

We have a one-lease, one payment policy (keeps our banking fees down), so when we rent a house to a group of students we tell them to elect one amongst them to submit the rent monthly and they handle getting their apportionments to her/him internally.   We discourage receiving {partial} rent payments from individual housemates or third-parties (parents) and charge an extra administrative fee in those instances.

1(506) 471-4126

Join the Largest Real Estate Investing Community

Basic membership is free, forever.