Need some advice on my off campus rental, mid semester.

General Landlording & Rental Properties
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Need some advice on my off campus rental, mid semester.

Jake Baxter
Real Estate Agent · Storrs Mansfield, CT · Member since 2015 · 11 posts · 6 votes

Hello Bigger Pockets!
Newbie here looking for some advice on my single family rental that I'm renting for the first time.
The home is located just outside of the University of Connecticut Campus in Storrs. Off campus housing is hard to come by in the area and the price of rent reflects that, hence why I invested in the property. After living there a year and rehabbing the entire house,  I posted the rental active last month. My price is competitive and still makes a great return for myself. Although I found myself in a predicament having posted it in December.
All the interest I'm receiving is from students looking for housing for the 2019-2020 school year (ideally with a lease starting in July). I've received at least 40 inquiries about the property for next school year but zero interested in a lease starting next month.
I soon realized my mistake, the campus has a housing deadline that must be met the beginning of the semester before the one in which they're seeking housing. So for students looking for Fall 2019 housing, their deadline is February (next month). Students in need of housing next semester (Spring 2019) have already secured it over the summer.
This leaves me at a stalemate. I've had multiple students offer to sign a one-year lease starting as early as June. If I don't act soon I risk losing a large sum of the students trying to acquire housing before the deadline in February. Although, signing a lease beginning in June leaves me paying on the property without any cash flow for an additional 5 months, setting me back on any new potential properties (which I already have good leads on).
The town that the home is located in is  nestled in the quiet corner of Connecticut and doesn't attract a lot of metropolitan traffic. The closest major city is Hartford, about 30 minutes west.
I  am looking for any advice on what my next step should be. Should I sign a lease with students willing to start as early as June? Or,do I  roll the dice, hope that I stumble upon a family looking for housing or students that haven't yet secured housing for the upcoming semester/onward?
I'm attempting to gather a few different ideas from investors with more experience than I.  Any advice is greatly appreciated!
Thanks!
Jake Baxter

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Marshall Daniels
Medford, MA · Member since 2014 · 2 posts · 6 votes
7y

Jake, I've rented to students for the past 14 years.  My area rents on the same schedule as yours.  Sign the lease starting in June that runs through 5/31/2020 now.  Then, look to fill the space in the meantime with students who want it through May'19.  To accomplish this, you will want to contact the schools off campus housing office.  Learn where students look to rent apartments.  Is it Craigslist, Jumpoffcampus.com, maybe a school site, a university bill board (for sublettors)?   You'll be limping through until you get to June.  You may have to rent out the apartments by the bedroom.  These people would be tenant at will.... with the understanding that they are out of the space by 5/31/2019.  Find into the students looking to sublet.  Advertise to students who may be unhappy with their current living arrangement.  Discount your rooms.  Walk through the school and post flyers about your rooms.  Place flyers with local coffee shops.  The first year is tough. Students rent in September/October and sign leases for the following June.

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  • Marshall Daniels
    Medford, MA · Member since 2014 · 2 posts · 6 votes
    7y

    Jake, I've rented to students for the past 14 years.  My area rents on the same schedule as yours.  Sign the lease starting in June that runs through 5/31/2020 now.  Then, look to fill the space in the meantime with students who want it through May'19.  To accomplish this, you will want to contact the schools off campus housing office.  Learn where students look to rent apartments.  Is it Craigslist, Jumpoffcampus.com, maybe a school site, a university bill board (for sublettors)?   You'll be limping through until you get to June.  You may have to rent out the apartments by the bedroom.  These people would be tenant at will.... with the understanding that they are out of the space by 5/31/2019.  Find into the students looking to sublet.  Advertise to students who may be unhappy with their current living arrangement.  Discount your rooms.  Walk through the school and post flyers about your rooms.  Place flyers with local coffee shops.  The first year is tough. Students rent in September/October and sign leases for the following June.

    5Reply
  • Account Closed
    Lender · Fairfield, CT · Member since 2018 · 183 posts · 82 votes
    7y

    I agree with @Marshall Daniels. With the two student rentals I own, they usually lease up around October for the following fall school year.

    1Reply
  • Will GastonPro Member
    Rental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes
    7y

    I also agree with @Marshall Daniels. I've been doing student rentals since 2006 and one of my biggest takeaways to this business is how crucial timing is. Almost like a vacation rental biz. A property in my market can literally rent for twice as much in certain times of the year. But it really sucks if you get off of the summer to summer schedule. 

    I've been in your situation many times in the early part of my career. I'd just go ahead and bite the bullet and take the June lease now. Get on the school schedule and do everything you can to stay on it from here on out.

    1Reply
  • Jake Baxter
    OP
    Real Estate Agent · Storrs Mansfield, CT · Member since 2015 · 11 posts · 6 votes
    7y

    I really appreciate all the help. I guess I better sign a lease starting in June now so I get on the summer to summer schedule. Something I should have considered a lot sooner.
    @Marshall Daniels great input. I'm posted on the universities off campus website as well as hotpads, craigslist, and zillow. I'll reach out to the department itself and see if I can establish some contacts there. I was also considering putting the word out to the ESL department for students studying abroad.
    Hopefully I can get some rooms filled to at least cover my monthly overhead so I'm able to move forward with new deals.
    Thanks for all the help!
    Jake Baxter

    0Reply
  • Jaysen Medhurst
    Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
    7y

    @Jake Baxter, I lived in Storrs for ~5 years in the 90s and know the area pretty well. Nice to see you here on BP.

    I think you'll probably make the best money from student rentals. Are you renting it out completely or room-by-room? Room-by-room is probably going to be the most profitable.

    I would lock in those students for next year. They're driving the majority of demand in the market. Don't miss this open window. In the meantime, put it up for short-term, room-by-room rental: Feb-June and see if you get any bites. Might worth the extra work to make some cash from now until next year's students move in.

    Check out BP podcasts 140, 195, 198, 215, & 220 for some great tips on how to best manage and profit from student rentals.

    Lastly, if you've received 40 calls already, you're probably priced too low.

    2Reply
  • Will GastonPro Member
    Rental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes
    7y
    Originally posted by @Jaysen Medhurst:

    @Jake Baxter, I lived in Storrs for ~5 years in the 90s and know the area pretty well. Nice to see you here on BP.

    I think you'll probably make the best money from student rentals. Are you renting it out completely or room-by-room? Room-by-room is probably going to be the most profitable.

    I would lock in those students for next year. They're driving the majority of demand in the market. Don't miss this open window. In the meantime, put it up for short-term, room-by-room rental: Feb-June and see if you get any bites. Might worth the extra work to make some cash from now until next year's students move in.

    Check out BP podcasts 140, 195, 198, 215, & 220 for some great tips on how to best manage and profit from student rentals.

    Lastly, if you've received 40 calls already, you're probably priced too low.

     Jaysen is absolutely right on pricing. I'd argue (and he'd probably agree) that it's way too low.

    0Reply
  • Jake Baxter
    OP
    Real Estate Agent · Storrs Mansfield, CT · Member since 2015 · 11 posts · 6 votes
    7y

    @Jaysen Medhurst thanks for the reply! I'm renting the house out completely as the Town of Mansfield only allows three tenants with different last names on a lease. Also, I figure there will be less complications among tenants renting it out as a whole. 
    My price was initially set to consider the timing of the property. Since I've decided to sign a tenant for June/July I went ahead and raised the price to what is more comparable for the area. I'm anticipating to still get some hits off the higher rent over the next few days and if not I still have my original pool to send applications to.

    0Reply
  • Ryan Kissane
    Investor · East Hampton, CT · Member since 2014 · 5 posts · 1 vote
    7y

    What is your price now and what was the discount price?

    How many bedrooms/ sf. How close to campus?

    0Reply
  • Jake Baxter
    OP
    Real Estate Agent · Storrs Mansfield, CT · Member since 2015 · 11 posts · 6 votes
    7y

    @Ryan Kissane I've raised the price to $2260 and originally had it listed for $1980. 

    It's 1100 sq. ft. not including the finished basement. 3 bedrooms 2 full baths. 2 miles to Gampel (center of campus).

    0Reply
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