So, you’re thinking about renting your property to college students. Brave, bold, and potentially lucrative—but also an adventure in its own right. College students can bring a unique flavor of tenancy, and by "unique," we mean everything from pizza boxes in the oddest of places to perhaps the loudest game nights you’ve never been invited to.
At
Nesbitt Realty, we know the ins and outs of renting to every type of tenant, including the late-night-study-session, ramen-noodle-cooking variety. Let’s break down the risks and rewards so you can determine if renting to the college crowd is right for you.
The Rewards: Cash Flow and Flexibility
1. Consistent Demand
Colleges churn out new batches of eager (and housing-needy) students every year. The student rental market is strong, predictable, and constant. If your rental property is near a university, you’ve got a reliable stream of potential tenants who need housing—whether it’s a first-year freshman or a graduating senior finally flying the coop.
- Nesbitt Tip: With an endless supply of students, your property will never be a ghost town. Plus, if one group graduates or moves on, another is right behind them, ready to take up residence.
2. Rent Prices Can Be Competitive
Believe it or not, you can often charge competitive rent prices for student housing. Why? Because many students split rent with roommates. While you might typically rent a 3-bedroom home to a family, student tenants may divvy up the rent among three or four individuals, which means they’re often willing to pay a bit more for the location, proximity to campus, and convenience.
- Nesbitt Tip: Renting to students can bring in higher per-bedroom income than renting to a single-family or professional couple. And with students willing to pay for the convenience, your bottom line gets a nice boost.
3. Flexible Leases
With students, you’re often looking at shorter-term leases—usually around 9-12 months. This can be a benefit if you want flexibility with your property. Maybe you want to renovate, change up your investment strategy, or take a seasonal approach to renting. Having shorter leases gives you that option.
- Nesbitt Tip: A well-timed lease that aligns with the academic calendar can help you take advantage of peak demand.
The Risks: Parties, Property Wear-and-Tear, and Parental Phone Calls
1. Party Central
Ah, the infamous college party. While some students hit the books and lead relatively quiet lives, others... well, they hit the keg and bring the house down (literally). Let’s face it, college students might not have “quiet enjoyment” top of mind.
- Nesbitt Reality Check: If you have neighbors, be prepared for potential noise complaints. Setting clear expectations in the lease regarding noise, guests, and parties is crucial. And don’t be shy about addressing these issues if they arise.
2. Property Wear-and-Tear
College students aren’t necessarily known for their pristine housekeeping skills. What they are known for? Spills. Scratches. Accidental damage. Whether it’s that ancient couch they hauled up the stairs (scraping the walls as they go) or their creative attempts at wall decor, your property will experience some wear and tear.
- Nesbitt Tip: Invest in durable, easy-to-clean materials for your rental. Think hard flooring, stain-resistant carpet, and scuff-proof paint. And don’t forget the security deposit! You’ll need it when that dorm-room poster leaves a chunk of drywall behind.
3. Inexperience with Responsibility
College students, especially first-time renters, may have limited experience with things like managing bills, dealing with maintenance issues, or understanding lease terms. You might get more calls than usual about minor issues, like how to turn off the pilot light or unclog a drain.
- Nesbitt Reality Check: Patience is key here. Consider creating a tenant guide that outlines basic home maintenance tips and FAQs. This can help cut down on the 1 a.m. “My light bulb went out!” phone calls.
4. Co-Signers & Rent Payments
One of the perks of renting to students is that many will have co-signers, typically parents, which means added security when it comes to rent payments. However, managing co-signer relationships can sometimes be tricky. If there’s an issue with rent, you’ll likely end up discussing the matter with the parents, who may have different expectations or concerns than their student tenants.
- Nesbitt Tip: Make sure the lease agreement is crystal clear, and communicate openly with both the student tenants and their co-signers. Everyone should understand their responsibilities to avoid confusion down the road.
Best Practices for Renting to College Students
1. Be Selective
Just because someone has a student ID doesn’t mean they’ll be a good tenant. Screen students just as you would any other tenant. Look for references, check with previous landlords, and consider meeting them in person to get a feel for how responsible they are.
2. Set Clear Expectations
Students may be new to renting, so set the tone early. Make sure the lease includes details about noise restrictions, guest policies, and maintenance responsibilities. The clearer the expectations, the fewer misunderstandings down the line.
3. Schedule Regular Inspections
With the wear-and-tear factor in play, it’s a good idea to schedule regular property inspections. This helps you stay on top of any damage or maintenance issues and encourages students to keep the place in decent shape.
4. Be Proactive About Communication
Students are used to communicating quickly and digitally—whether it’s texting, emailing, or using apps. Make it easy for them to reach out, but set boundaries about when they can contact you. (Yes, we’re talking about those middle-of-the-night requests.)
Conclusion: The Nesbitt Realty Take
Renting to college students can be both rewarding and challenging. At
Nesbitt Realty, we’ve navigated this territory and can tell you that with the right precautions, it can be a lucrative investment. You’ll need patience, a solid lease agreement, and maybe a bit of good humor for when you find that old pizza crust stuck behind the radiator.
By understanding the risks and rewards, setting clear expectations, and maintaining a proactive approach, renting to college students can work out well—for both you and your tenants. You just have to be ready for a few surprises along the way (like finding out your living room is “perfect” for late-night study groups).
