Renting to Students: How do you assess the risk?

Question

This property is a couple blocks from campus. It's basically set up for housing students with small kitchens on each floor(2).

I will always need a group of 7+ kids. Since only juniors and seniors can rent of campus, tenants will be there for at most 2 years. There are rules about 3 or more unrelated people living together so I will need 3 separate leases at all times. I'm concerned about not always being able to fill the need constantly.

Renting to non students would probably be difficult and would command less rent.

Account Closed · Answer

I've always rented my studio to students and have never had a problem. Character and references go a long way. Also, a deposit doesn't hurt either...

Bill Gulley · Answer

I rented to college kids for more than 15 years and really never had a problem with them....why? Because I make one responsible on the lease and allow that person to sub-let under one agreement. That tenant is the one who is generally the oldest and has the richest daddy who co-signs the lease, that's why I never had a problem.

You do NOT want to do multiple leases on one unit.....you really can  have problems if you need to hold feet to the fire.

Carole M. · Answer

I rented to 3 college students (all ladies) and never had a problem.  I had all tenants fill out an application which included employment/credit history and references.  All 3 signed the lease.  When one moved out, they secured another renter and they signed the lease, and also filled out an application.   I found that the parents usually assisted with the rent (as I received rent checks from parents).  They were very clean, quiet and stayed for a few years.
I did not check references as my gut with these ladies told me they were responsible and they proved same.

Dan M · Answer

Jonathan, i was assured by my agent that multiple leases won't be a problem. i would think 2 would be ok but how would i rent the 7th bedroom on a floor by itself? i would already have 3 on each of the other 2 floors

Jonathan Sowinski · Answer

Some of the LL I know that rent to students require payments be paid by semester or school year in advance to attempt to minimize any lost rent.  They claim that it works and most of the checks end up being from parents.

They also budget for annual cleanouts and minor rehabs mainly plaster repair and paint.

As Steve stated you probably can’t get around the tenancy issue with multiple leases and I would imagine that local law also prevent you from renting them out as individual rooms either but it may be worth looking into.   How close of a relative do they need to be to be considered “related”?

Dan M · Answer

Yes Joe, the current tenants are consigned by their.parents.

Dan M · Answer

Steve, its a duplex. does that mean i could only draw up 2 leases? Not sure how i would make the bedroom on the first with just a bathroom fit into the plan.

Joe Delia · Answer

If they have no credit (99% of your applicants) have parents co-sign.

Steve Babiak · Answer

The "no more than 3 unrelated people" rules are per UNIT - if this house is a single family house, then that is considered a single unit; duplex would be 2 units, and triplex would be 3 units, etc.  Don't go thinking you can write up 3 separate leases as if there were 3 units when you don't have that many units.

Dan M · Answer

Thanks Chris. The building I'm considering has 3 beds, a bath and a kitchen on each of the second and thirsting floors. it has one bed, one bath and a kitchen on the 1st floor. I'm hoping to be able to rent to 7 kids, maybe more? what are some of the legal troubles i might run into with this? the unit is in PA. im still waiting to talk to a re. lawyer.