Student Housing

5 Replies

Hello to all;

I'm a newbie to BP. I'm expanding my portfolio to holdings of real-estate. I have had several years of experience in student housing (the paying side). Would like to hear from those who deal in this niche and learn a few tricks of the trade to be better successful. Tibit: my son will be one of the renters with 6 other ROTC cadets. So I'm trying to create an all inclusive price..good idea? I'm located in the NE

Any info you can pass along would help me become more successful, I appreciate it.

Thanks so much

Vince

@Vince Futia  

First, I would check to confirm local bylaws allow that many unrelated individuals to occupy a single dwelling.  It is a very common to have such a restriction, particularly in university/college cities.  Here the limit is four.

Students do like to have a single payee for their rent and utilities.  If you are renting by the room (a rooming house) then you have no real alternative but to use a gross lease (all utilities rolled in).  We have an a large duplex which we rent by the room to International students (my sister-in-law resides in one of the units and serves as Den Mother); in this building we include utilities and internet access within the rent.

Our other student properties, including one 4-bdrm house, are rented by the unit.  In this scenario we do never rent with utilities included.  We still offer our student tenants the convenience of having a single payee for rent and utilities, but use a separate utilities agreement whereby the tenants prepay an amount into a Utilities Budget each month and are given copies of all utility bills so they can monitor their consumption.  Every three months we reconcile.  If there is a surplus in the fund, we give the tenant the choice of applying it to the next month's rent or holding it in the fund in anticipation of larger bills (i.e. winter).  If there is a deficit, we invoice the tenants and the balance is due the first of the next month.

So, in short.  It is a good business idea to offer your tenants a single payee, but, unless you have no choice (e.g. rooming house), a bad idea to offer an all inclusive rent.

1(506) 471-4126

@Vince Futia  

Student housing 2-4 times the rent. A buddy controls 130 beds she told me...

Utilities, cable, internet are included

Keep them out of the basement

She has someone clean the common areas 2 x a month she can document any damage during the cleaning

Solid contract she has the parents guarantee

No locks on the bedroom doors

Auto deduct means she can reconcile 130 rents every month in 5 minutes

Paul

Account Closed 

That sounds like rooming house scenario.

1(506) 471-4126

Roy

No locks on the bedrooms is key to avoid rooming house.

Paul

Originally posted by Account Closed:

Roy

No locks on the bedrooms is key to avoid rooming house.

Paul

 Paul,

That is just semantics - that game gets played up here as well.  If you are renting by the room, you are effectively a rooming house.

1(506) 471-4126

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