What are the Rules/Ordinances in Your College Town?

Question

All:

As an investor in the student rental market for over 13 years, I have increasingly seen new investors purchasing student rental property without finding out what is and what isn't allowed in a college town (full disclosure: I was one of these when I bought my first student rental property). I'm sure there are plenty of markets where there are no specific rules but am curious as to other markets out there.

Is there an unrelated persons ordinance in your market? If so, what is the maximum number of unrelated? Any other caveats?

My market of Columbia, South Carolina allows for a maximum of 3 unrelated persons.

Side note: The current Governor of SC, Henry McMaster, owns quite a bit of student rental property in Columbia and tried to get the 3 unrelated persons ordinance overturned in 2011. It was upheld by the SC State Supreme Court: McMaster v. Columbia Board of Zoning

Joan Brown · Answer

There is some verbiage about type of property, apparently it doesn't count for multi-family zoning.

From the city's website:

The majority of our neighborhoods in the City of Lubbock are zoned as single family neighborhoods. In these neighborhoods no more than two unrelated persons may live in a dwelling.

If you read the ordinance for the residential zone, you will find that use is limited to single family residences. In the definition section of the Code of Ordinances, the definition of family is as follows: “One or more persons related by blood, adoption, or marriage, or not more than two (2) unrelated persons living and cooking together as a single housekeeping unit.”

This means that the City Of Lubbock does not limit the number of related people who can live together in a residential structure in a residential zone; the federal courts have held that to be unconstitutional. However, if the people living together are not related, no more than two may live together in a single family zone.

Joan Brown · Answer

In Lubbock, we have an ordinance about more than two unrelated people living in the same place. It is enforced based on complaint. One urban legend is that it was created to give neighbors leverage for loud student party houses or students parking all over the street. I mention the ordinance when talking with potential tenants and have tenants sign a disclosure when they are signing the lease.

Joe Splitrock · Answer

All the city ordinances are enforced based on complaints, so if the neighbors are not making an issue, they won't do anything. We also have an ordinance the requires all rental properties to be registered with the city, but I would say at best a quarter of the rental houses are registered.

Peter Tverdov · Answer

There is no ordinance like that in my market. Instead they permit a certain amount of occupants based on how much common area is in the home (kitchen, living rooms, dining rooms, den). They also calculate bedroom sqft and determine if it's a single (for one person) or a double (for two people). So if you don't know the New Brunswick market you can buy a 3 bedroom that's only for 3 people while another 3 bedroom can be for 6 people. Whether or not they know each other is irrelevant.

Some people in my area rent the properties like it's a boarding house (illegal) or they allow people to sleep in an unfinished basement or unfinished attic (also illegal).

Will Gaston · Answer

@Joe Splitrock is the ordinance not enforced in your market? If not, any idea why?

Joe Splitrock · Answer

@Will Gaston my city limits properties to no more than 3 unrelated persons, but I regularly see housing advertised for 4 or 5 students. Not only is that an occupancy violation but specifically marketing your property as student housing violates fair housing.

I wish landlords followed the law, because putting the extra occupants in the property crowds parking on the streets and overwhelms them with traffic. They college areas are older neighborhoods that were built at a time when one car per house was standard, so even three cars is an issue.

Cassi Justiz · Answer

I'm not 100% sure. I haven't really dug much into the multifamily space in Lubbock. The way the ordinance is written is specifically states per single family residence, so I assume it would be per unit at that point. But I know a lot of the apartments rent out by the room to up to 4 people, so maybe the multifamily zoning has it's own rules.

Will Gaston · Answer

@Cassi Justiz does this apply to duplexes as well? We have a 3 unrelated per unit. So we can have up to 6 in a duplex, 9 in a triplex, etc.

Cassi Justiz · Answer

I'm from Lubbock Texas where Texas Tech University is located.

They have a 2 unrelated persons per single family property rule. Luckily, they don't actually enforce it unless someone gives them a good reason to.

What are the Rules/Ordinances in Your College Town?

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