Investors Look to College Towns as Students Face Higher Costs to Live On Campus

By E-Renter Tenant Screening
Posted on February 27, 2013 under Housing Trends, Landlord Tips | Be the First to Comment

College expenses are climbing higher and higher. Not only are tuition and fees going up, but so are room and board. Parents and independent college students are looking for cheaper alternatives to campus housing.

And more investors are looking into this market, because college student housing can be a lucrative investment. When housing is hard to come by, vacancy is not usually a problem. Nor is getting market rents or above.

While renting to students has its downsides, the parents are often footing the bill, so the rent checks come in regularly from mom and dad. After all, they don’t want their kids coming home, so they’d better pay the rent, right?

Here are some tips for renting to students:

• Make sure you have an solid lease. Include details about noise restrictions, unauthorized roommates, damages and any other expectations you have for your tenants.
  
• Have each student who will be living in your rental property apply separately, put each on the lease and have their parents or guardians co-sign the lease.
  
• Screen each potential tenant. Tenant screening for younger college students might seem unnecessary, but most students have a credit history—and many have criminal histories. You nee to know who you are renting to.
  
• Let each tenant know that they are jointly and individually responsible for the entire rent payment. If one roommate can’t pay his or her share, it is up to the rest to cover it. Make it clear that you won’t accept partial rent payments.
  
• Enforce your rules whenever there is an incident. Young people often push limits to see how far they can go. When they see you mean business, they will—hopefully—act accordingly.
  
• Make sure your insurance policy covers renting to students. Many companies are starting to restrict coverage in certain towns.

Countless landlords successfully lease their properties to college students. And many of them actually enjoy it! Just keep an eye on your property and the lines of communication open.