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Pros & Cons of Renting to College Students

School is about to start and properties near the colleges will see of flood of tenant applications. Do you want to rent to college students? Here are a few pros and cons, and how to minimize your risks:

Pros:

  • Most likely parents are paying the students rent, which means it’s less risky.
  • Rent in a college town tends to be higher because it’s in competition with dorm room fees.
  • Students expectations aren’t usually high and can be easy going tenants.
  • Students are easy to advertise too – Craigslist or flyers at the colleges will usually do the trick.
  • They may pay in advance – With student loan money coming in, or to have less hassle for parents, you may get paid for the entire semester up front.

Cons:

  • Most likely, this is the first time a student is living on their own. They may push boundaries to get accustom to this new freedom.
  • If they were use to mom and dad cooking and cleaning up after them, they may have some adjusting to do.
  • Students are tougher on apartments than normal tenants due to the short-term nature of their stay.
  • The risk of parties increases the likelihood of damages to the property.

Minimizing the Risk

  • Have your attorney craft a special lease tailored to renting to college students. It should include co-signers as well as clauses on noise, maximum occupancy, and damages/repairs.
  • Have both parents cosign for minors and non-minors to add to the level of responsibility. 
  • Do thorough screenings and checks on the student and parents. Pay close attention to the students references since they will have a limited credit history.
  • Hire a third party to monitor the building, similar to a Resident Assistant in a college dorm.
  • Rent by the bed: This way, one bad roommate won’t spoil the whole bunch or cause as many headaches for you if they need to move out.

The abundance of college students can provide a spike to your business in the fall. If you take the appropriate precautions, it can be a profitable revenue stream, and one you can count on year after year. 

Posted by: cabgroup on August 1, 2017
Posted in: Uncategorized