Student Housing Renting Method

[Scott Kohler]

I own a 6 bedroom, 2 bathroom house on Ball State University's campus. It has three bedrooms and a bathroom on each level with the laundry and kitchen being on the lower level and the living room area being on the upper level. When I purchased the house it was at 100% capacity and was rented out at $400/month per bedroom so more dorm style living arrangements. Going forward I am looking for advice on if I should continue renting the house out on a per room basis or should I list it as a six bedroom, 2 bath home and try to rent the entire house out to a party of people who all know each other. Two of my tenants that are there now want to stay for next school year and I am hesitant to have them sign their lease if I do decide to attempt to rent the entire house out at once. Any advice would be much appreciated! Thank you, Scott.

[Andrew Syrios]

We have always had the most success with student rentals renting on a per room basis. Indeed, we've been able to raise rents on student rentals quite substantially (as much as 50% in the past before the market was "discovered" a while back). I don't know the market you're in, but $400 sounds low from what I've generally seen (which includes Eugene, OR, Corvallis, OR, Emporia, KS, Lawrence, KS, Poughkeepsie, NY and a few other places).