Many a rental property owner comes face to face with the question: Should I rent to college students? For some, the very thought conjures images of loud, late-night parties and disorderly conduct. Others might offer property destruction and late rent payments as cause for steering clear of student tenants. Even though these commonly held notions do not apply to all guys and gals seeking higher education, stereotypical impressions about this group of young people can easily sway a landlord away from folks who could be quality renters.
The reality is there are both perks and drawbacks to renting housing to college students. Let’s consider both the pros and the cons.
PROS
Lots of demand
If you own rental property near a university or even in “a college town,” you can benefit from a built-in source of demand. Students often opt for off-campus housing for a variety of reasons—
· A less expensive option than on-campus housing
· The freedom of an apartment or house not affiliated with the school
· More privacy/less commotion than living in a dorm
Simple marketing
The “built-in demand” noted above means that advertising your rentals will require less time, effort, and maybe best of all, less money. Factor in the word-of-mouth advantage as satisfied student renters recommend your units to their fellow classmates. Demand plus “talk” will likely equal a steady stream of potential tenants finding their way to your door. Who would argue with the positive bottom-line impact of a slashed marketing budget?
Reduced spending on upgrades
Typically, college students don’t place near the priority on having the latest and greatest, as do older, more established tenants. What’s high on the list of priorities for student renters? Reasonably priced housing with a lease that fits their school-year needs. So, landlords aren’t pressured to upgrade their units as often.
CONS
Higher turnover
Landlords should expect that long-term renters will be few and far between. Because education timelines and roommate arrangements change, in addition to students graduating, one-year, non-renewed leases are the norm. Factoring that most Freshmen live on-campus, a student might opt to spend two or even three years in the same off-campus rental unit, but that scenario won’t be repeated often. Still, the high demand should help landlords keep their units occupied.
More upkeep
Student tenants will tend to be inexperienced renters who may not be wise in taking care of a property. Having always lived with Mom and Dad can lead to a neglectful approach to housekeeping and maintenance, which might translate into late or non-existent maintenance reports to the landlord or even property damage. The short-term nature of the living arrangements can result in less incentive to “keep things looking nice.” However, an experienced landlord can help fill in the cracks caused by the youths’ greenness with detailed instructions and expectations.
Difficulty screening renters
No prior rental and little, if any, credit history can make a typical screening process more difficult. Because of this, some landlords will opt to require a co-signer, usually a parent or guardian. This understandable requirement can offer a landlord the peace of mind to feel comfortable entering into a student renter/landlord agreement.
Landlords, don’t rob yourself of potential profits by closing the door on the possibility of renting to college students.
About Rentals America
Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management and we’re here to help landlords navigate the rental market.
