Screening for students?

Question

My spouse and I are looking to get into real estate and we're considering starting with a single family home in a university town. What kind of differences are there with screening potential student tenants vs non-students? Most will probably not have a rental history and may not have credit history either. How do you screen for students and what protections do you put in place for yourself? Do you also screen co-signers? Would you always get a co-signer for a student?

Thanks!

Dani

Thanks!

Dani

JD Martin · Answer

@Will Gaston is going to be your go-to source for student rentals. We rent in a university town but prices have gone high enough that we don't get as many students as in the past. I look for graduate students, married students, roommates coming in together as friends/siblings with parent co-signing. Almost always a co-signer for students unless they are graduate or married. I can't remember the last time we had an undergrad without a co-signer, if ever.

Louis P Lessor · Answer

I would say having a parent as a co-signer would be the best bet, plus working with an experience property manager that deals with student rentals will help ensure you have cash flow coming in.

Michael Smythe · Answer

Parents usually cosign.

Just be sure they are liable for unpaid rent AND damages!

Of course, if parents are out of state, actually chasing them for collections is often prohibitively expensive:(

Tj Floros · Answer

I have a rental unit with 3 tenants, one of the tenants' fathers was the co-signer/guarantor of the lease. Like you said the students did not have any rental history or high credit scores so it was nice to have a parent attached to the lease. If there are any issues I can deal with the students but if that does not work I can always reach out to the parent(s). I would suggest talking with an attorney or a property manager if you plan on renting to students, I'm either of those probably have leases and items in place just to deal with students.

Shea Murray · Answer

@Dani Edwards Hey Dani! Yes like many have said. Unless they can carry the lease on their own definitely need a co-signer.

I would also confirm that the co-signer's income is a higher threshold than the standard 3x monthly rent because presumably they have to carry their own expenses also--normally this won't be an issue, but set a standard and screen all the co-signers that way.

Also, keep in mind that with Fair Housing, you won't be able to exclude people who are not students - so while you can market towards students (i.e. "Students Welcome!), if you receive standard market applications you will need to consider those as well!

We manage quite a few properties in the Aurora area. Feel free to shoot me a DM if you have questions!

Will Gaston · Answer

Hey Dani, this student rentals thread may be helpful: Nearing 1,000 College Tenants - Here's What I've Learned

Carlos Hennings · Answer

Great question—and welcome to the world of real estate investing!

Renting to students can be a great strategy in a university town, but it does come with unique considerations. Since many students don’t have established credit or rental history, it’s important to adjust your screening process while still protecting yourself as a landlord.

Screening Student Tenants:

• ➤ Always run at least a criminal background check, including a sex offender registry search. This is essential for safety and due diligence.
• ➤ Judgments & Liens searches should still be run—even if the applicant is young or has limited credit.


⚠️ Judgments & Liens are no longer included in credit reports, so they must be ordered separately.


This is especially important with students in their second year and beyond—past landlords may have filed for unpaid rent or property damage, and that won’t show up on a traditional credit report.
• ⚠️ Judgments & Liens are no longer included in credit reports, so they must be ordered separately.
• This is especially important with students in their second year and beyond—past landlords may have filed for unpaid rent or property damage, and that won’t show up on a traditional credit report.

➤ Always run at least a criminal background check, including a sex offender registry search. This is essential for safety and due diligence.

➤ Judgments & Liens searches should still be run—even if the applicant is young or has limited credit.

• ⚠️ Judgments & Liens are no longer included in credit reports, so they must be ordered separately.
• This is especially important with students in their second year and beyond—past landlords may have filed for unpaid rent or property damage, and that won’t show up on a traditional credit report.

⚠️ Judgments & Liens are no longer included in credit reports, so they must be ordered separately.

This is especially important with students in their second year and beyond—past landlords may have filed for unpaid rent or property damage, and that won’t show up on a traditional credit report.

Co-Signers:

• ➤ Yes, always get a co-signer for student tenants, ideally a parent or guardian with a strong financial background.
• ➤ Screen co-signers just as thoroughly as the primary tenant: run credit, verify income, and check for any red flags like collections or legal judgments.
• ➤ Do not rely on pay stubs to verify income, as these can easily be faked. Instead, look for a screening company that offers verified income reports using bank or payroll data to ensure legitimacy.

➤ Yes, always get a co-signer for student tenants, ideally a parent or guardian with a strong financial background.

➤ Screen co-signers just as thoroughly as the primary tenant: run credit, verify income, and check for any red flags like collections or legal judgments.

➤ Do not rely on pay stubs to verify income, as these can easily be faked. Instead, look for a screening company that offers verified income reports using bank or payroll data to ensure legitimacy.

Protections & Lease Considerations:

• ➤ Use joint and several liability language in the lease so each tenant (and co-signer) is responsible for the full rent amount.
• ➤ Set clear expectations in your lease regarding parties, guests, and maintenance responsibilities to protect your property and minimize issues with neighbors.
• ➤ Consider including a clause stating that the lessee and co-signer are responsible for any and all legal and collection fees—this provides additional backup should enforcement become necessary.

➤ Use joint and several liability language in the lease so each tenant (and co-signer) is responsible for the full rent amount.

➤ Set clear expectations in your lease regarding parties, guests, and maintenance responsibilities to protect your property and minimize issues with neighbors.

➤ Consider including a clause stating that the lessee and co-signer are responsible for any and all legal and collection fees—this provides additional backup should enforcement become necessary.

Student rentals can be very successful when you have strong systems in place. Best of luck as you start your investing journey!

Amit Patel · Answer

Investing in a single-family home in a university town can be a great strategy, but screening student tenants requires some key adjustments compared to non-student renters. Since standard methods may not work, consider these alternatives:
Require a Co-Signer/Guarantor – Always get a financially stable co-signer, such as a parent, who will be legally responsible if rent isn’t paid.
Verify Enrollment – Confirm that applicants are actively enrolled at the university to ensure stability.
Check Employment & Savings – If they have part-time work or savings, ask for proof.
Request References – A letter from a previous landlord (if applicable), employer, or professor can help gauge responsibility.
Assess Co-Signer Credit & Income – Run a full background check on co-signers, just as you would for a primary tenant.

And for having more protection as a landlord I would advice

Sometimes higher security deposits can help you protect against damages, of course the maximum allowable.

Some landlords require parents as a co-signer to sign the lease, not just a guarantor agreement.

Include in the lease clauses on noise, guest policies, maintenance responsibilities, and property inspections, can be an option to avoid future problems

Tj Floros · Answer

Not really, I just use the standard RLTO here in Chicago. I don't really add any specific like student items the main thing is just having the parents attached to the lease for me at least.

Dani Edwards · Answer

@Tj Floros thank you for the reply! Do you have different line items in your leases specific for a student vs a normal tenant?

Screening for students?

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