Midterm Rental for University Students - Vacancy range?

Question

Hi all. Thinking about purchasing a large 4BR single family home near a university. I was told by the realtor that 750-800 per bedroom per month is the prior and expected rent. How are summer months handled with students? Do they tend to move out of the room and find something else when they return to school? What would vacancy rates look like if I'm focused on college students?

Zachary Deal · Answer

I can only speak from my experience in college but landlords in Madison, WI primarily did year long standard leases (not rent by the room) and it was up to the students to find subletters if they wanted. Some landlords offered more expensive rent for a 9 month period but the math didn't really make sense (half month savings at most) compared to a standard 12 month lease. I think from an investor stand point if you can just rent as a normal LTR and be flexible with subletters in the summer months that is the easiest way to go. It also means that your renters will want to vet their subletters carefully to ensure they get their security deposits back, etc.

Nicole Heasley Beitenman · Answer

I lived in 4 different apartment complexes during college, and this was my experience as well. All were standard 12 month leases. Once we hit junior year and started leaving the dorms, we had established ourselves well enough in our college town that we weren't going home for the whole summer anyways. We had jobs there and we took summer classes to lighten the load of the regular semester.

Colleen F. · Answer

@John Hidalgo We have a different area with huge summer rental potential so every rental is furnished and usually goes short term in the summer. If you are not in that kind of area you do what  @Zachary Deal.  I have heard some say that they save 2 weeks in August for repairs for non-renewals.  Furnishing or not  probably also varies by area.

Colleen F. · Answer

@John Hidalgo  also since your title is about vacancy keep in mind if you rent the unit as one there tends to be a season that students look for rentals in. Not to say that weeks before the semester starts you can't get tenants but tenants look well in advance and if you don't secure someone  well before the semester starts you  can run into trouble filling the unit for the year with students,  depending on the area supply of course.

Midterm Rental for University Students - Vacancy range?

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