Do any of you Rent out by the Room?
Specialist · fremont, NE · Member since 2014 · 161 posts · 42 votes
Years ago, when I was in college, I rented a room in a house. They focused on renting "to college students and young professionals" (being a USN Vet, I would probably add service members, reservists, and guardsmen).
Are there any B&H investors, that do this? If so, do you manage it yourself? I've talked to a few different property management companies, and none want to bother. Just wondering if others have, and how they've gone about it. Is it better in certain cities/state/markets?
There's a big group of us on BP that do student renting. I currently own three properties that I manage myself. I like this style for the following reasons:
1) I require a parental guarantee - no payment issues
2) I sign one year leases - I start inquiring to my students in February to see if they will renew (100% renewal for those not graduating so far) which keeps my vacancy rate at 0.
3) I require a group of students to rent the house. So if one moves out they have to find someone to fill the room or they don't get to renew their lease.
4) Recession proof - maybe not proof but have you ever heard anyone say their kids aren't going to college because there's a recession?
5) I have cleaners clean the house every two weeks which gets me eyes into the house to see how they are treating my house.
6) By renting out by the room I can charge more than renting the house. It's more work (collecting three payments instead of one) but it's not that bad with systems like Venmo, etc..
7) Students prefer houses over apartments (Vandalism issues, fire alarms at 2am, rowdy neighbors). Living in a house gives them a sense of freedom.
The key is having boots on the ground. You'll hear an underlying theme on BP which talks about building a strong team.
Good luck!
Ralph is spot on! I will say, this is definitely one of those instances where it really takes consideration of the type of student (ie. graduate vs. undergraduate) that you want to rent to. Thus far I'm of a similar notion as Ralph though, in that you want to make sure that you get that parental guarantee, and a year lease; move-in/move-out checklist process, and frequent check-ins. A very close family member is located in the Hyde Park area and it has proven to be a great market for graduate students at the University of Chicago. Usually, their rent is covered by the program that they're in and with it being a top university (and one of the most challenging) you're dealing with a different type of student. It all comes down to the amount of risk you're comfortable with assuming (as far as damages to the property). Probably putting the property at higher risk when dealing with undergrads. But again, students can be great for cash-flow and as long as you set your standards (I would follow that list Ralph has included above) you should be good! @Eddie Starr
@Ralph Poirier: Thanks for all of your feedback! You, too @Rob B.
I've a follow up, on the parental guarantee. I've come across a few of these in my college years, but not sure how it would work, regarding renting to them. I want to make sure I don't run afoul of Equal Housing.
How would this work for someone who was never adopted, or was "in the system, becoming a ward of the state," and who may have had their parents' rights terminated by the state, for whatever reason?
Married people? If there's a group of students, and there's a married couple--the youngest I personally knew someone to marry was 15, back in the early 90s--in the group?
Someone who was empancipated?
For these, or any other situation, how would I have that issue addressed?
I would plan to have a 0 tolerance for drugs and alcohol on the residence. However, as I live in WA (and may rent in other states), how would I address medical marijuana? I know places that have federal funding can deny it, due to federal laws. However, can I deny them, if they have a mmj? And if I can't, how do I make sure that only those with a mmj have it?
I'm thinking about using a keyless entry, that I can have changed by remote via wifi. Any suggestions?