Renting to college students is a potentially lucrative market especially if your rental property is located in a college town or near a university. College rental demand is high because as much as 63% of college freshmen live off campus. According to fortune builders, the college rental market offers several benefits compared to the non-college rental markets. One benefit is that demand for college rental properties tends to stay consistent in college towns. In addition, landlords can potentially charge higher rent to college students yielding higher profits. However, renting your property to college students comes with risk.
Property Damage: There is a higher risk of property damage, noise complaints and lack of maintenance when you rent to college students. College students are potentially living on their own for the first time and do not have a mother and father telling them to clean up after themselves. Having a good screening process that includes credit checks and personal reference can help you avoid these issues by making sure you screen out tenants that can give you a headache later.
Turnover rate: Most college students are looking for short term rentals that range from 6-12 months. This could mean your rental can stay vacant during the summer and you may need to constantly market to new tenants. It addition, you may have to screen new tenants every year which can become costly and time consuming. You can prevent having to many vacant properties by only allowing 12 month leases. In addition, having a good relationship with tenants, especially if they start renting from you as freshman can lead them to stay renting from you for 4 years and consequently cutting down on your turnover rate.
Late Rent: Some college students may be careless with paying rent on time. Landlords may need to go out of their way to collect rent each month. You can potentially avoid this issue by ensuring parents co-sign leases and having their contact information in case rent is late. Having parents pay you directly can also prevent an issue of late rent.
If you do plan on entering the college rental market staying organized will be essential for your success. Using the best Property Management System will enable you to save time and money during your daily property management tasks. Realty Information System’s Lease Management Software has essential features for landlords and tenants looking to affordably upgrade their property management system.
This post is provided by RISSOFT Residential and Commercial Property Management Software, specializing in innovative and cutting-edge property management software for all 50 states. Request a demo or contact us today to receive more information.
Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.