Midterm Rental for University Students - Vacancy range?

[John Hidalgo]

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]

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.