Rental properties located in university towns and student-populated neighborhoods have the potential to earn a steady stream of revenue by catering to this sizable, young demographic. This blog post takes a look at the advantages and disadvantages of renting out to college students.
- There is plenty of demand for college housing. Dorms are not the only housing options for college students, especially since some dorms cannot accommodate the whole student population. Additionally, off-housing arrangements are growing increasingly popular among college students, particularly among those who also work part-time in the city.
- Monthly payments are usually covered. While this is not the case for all college students (some are more independent than others), rent payments are usually covered by the parents. In some cases, parents go so far as to make advanced payments for the whole semester or year, making it convenient for you and your tenant.
- Higher tenant retention rate. With off-campus housing popular and in-demand, you might also see an increase in your tenant retention rate. There will be no need to worry about low vacancy− you will always find college students on the lookout for accommodations. The only times you will see your rental properties empty is during the holidays or when school is done for the year.
Additionally, although some student tenants will eventually move on to pursue their lives, the vacancy will eventually be filled in by incoming college students.
- Students have low expectations. College students are agreeable tenants in terms of features and amenities. They don’t expect a decked-out party pad. What they want is a functional space where they can study, rest, and entertain friends from time to time. There is no need to outfit the rental in high-end furnishings− basic yet modern ones will do.
- Some students don’t have rental history. This is the case among incoming college students, in particular. With little to no financial information, it might be hard to discern whether the student will be a good tenant, especially if there are no parents to co-sign the rent.
- The college parties. Freedom, immaturity, and the lack of parental supervision can lead to some outrageous college parties, indeed. To keep all of your non-student tenants happy, you can impose a number of rules to keep parties manageable, in case your student tenants decide to throw a mixer or two.
- Indifference towards damage or utilities. With some college students only renting for the short-term, you might experience a lack of concern when it comes to taking care of the rental as well as the utilities.
This lack of concern can even escalate to complete indifference, with some students having no regard over the value of your property. You might see your maintenance expenses increase in case of such scenarios.
When done right, you can make the most out of renting to college students
Find out how you can turn this venture into a success. Ray Amouzandeh is your go-to resource person when it comes to rental properties and management in San Francisco. Get in touch with him today at sfhomez(at)gmail(dotted)com or (415) 494-7009.