anybody, please give me comments on sucess story and challenges of renting out student accomodation.
Thank you beforehand.
HI @Sarun Rath
I have been renting to students for 8 years now and it is rewarding yet has challenges that are unique to college rentals. Based on my experiences the best way to offset risk is to rent properties by the room. By doing so you will yield more money per a property and diversify your payers so that there is revenue coming in all the time. If you rent the property to a group and the leader of that group decides not to pay or they are late you are screwed however the chances of all your students not paying you is low.
Buy a property within walking distance to the school if available
Rent by the room
Purchase your property so it coincides with the start of the fall semester as there will be more potential tenants looking at that time. Never purchase mid semester.
Do not rent to groups of friends , it's a recipe for wild party's and inevitable disasters.
Hire a cleaning service to keep an eye on things and provide regular maintenance.
Collect rent with some sort of online payment portal
Before buying test the demand for housing and pricing by posting an add on craigslist. Also use other craigslist postings in that area to gauge the market.
Let me know if you have any specific questions.
Thanks @Karl Pierre for the tip on testing the demand for housing by posting an add. My husband and I are in the market for a student rental and haven't done this! We will definitely try it.
What college/university area do you invest in?
@Emily Du Plessis Stony Brook, NY. It is a state school that has a major imbalance of housing and a large population of international students that require year round housing.
Yeah I always do it its kind of corny and unfortunate for those who reply to the bogus add but it definitely has helped me make my decisions. What is too far, how much is too much, when to post, when to buy, what information to provide etc.
To add to @Karl Pierre 's statements:
Get the parents to co-sign ALL of the leases
I had great success with student rentals for 2 years. Looking back I should have kept them longer, but alas, I did not.
do you manage it yourself? or hire property management? I agree that renting out by the room can increase potential cash flow, but that also means more managing and maintenance?
We have a single family house that rented out to four younger gentlemen as a group, they are friends, some were students some were not. Not the ideal scenario but we were desperate. Luckily they were the party type, and they were paying rent on time pretty consistently, and kept the place pretty clean and well maintained.
Unfortunately earlier this year two of them decided to move on and the rest can't afford to continue.