In this article, I will share ten best practices landlords use when renting to college students. Renting a room for a college student is far different than renting to a family. As a landlord, you must take precautions and have some strict rules about what those students can do in the house and what they can not.
One single chance of weakness can damage your reputation in the eyes of parents and the rental property will go vacant. Whenever you rent it to a student, check all these points and never allow something that may disturb the atmosphere.
Ten Best Tips for Renting to College Students
The best thing in this business is that the vacancy rate for your rooms will always be low, as every year, students will fill up the space, and cash will continuously flow into your pocket. But finding a good rental house near a good college is a tough job and can cost huge money. The opportunity is huge, but the upfront investment is not for everyone and hence the pros and cons of renting to a collage student. So here we begin.
Table of Contents
1. Do the Background Check
First, do a background check and find out about the student. Yes, they are college students, but that does not mean they are clean and will follow everything you set. Here is the list that you must check on a student.
- Their rental history.
- Criminal background check.
- Job history if works part-time.
- Total monthly income.
- Credit report and history.
- Past evictions and the reason, if any.
Not every check will come out positive, but you must check them all. You don’t want to be in trouble in the future. Do the background check and make yourself safe.
2. Ask for a Gurrentor
Most students have never rented a house before or have any credit records they can show you. In that case, ask for a guarantor. A guarantor can be a family member, a senior from the campus, or anyone who has some authority over the student and take full responsibility for him. If the student can not present a guarantor, then don’t rent the house.
3. Ask for a Security Deposit
You can also ask for a security deposit. But you must explain the terms of it and how you will give it back. In some areas, the maximum amount you can take as security is limited by the law, and you should follow that. A security deposit can become your biggest weapon and a safeguard against a dispute. Do ask for it and make your tenant-landlord relationship better.
4. Have some Strict Rules
Set some strict rules for all the students in the house. Like no smoking or alcohol in the room, no pets allowed, no parties and no female friends in the house and vice versa, and asking for permission you come home late. You will become their send parent. So act like one. That way, parents will trust you as you are taking care of them.
5. Make the House Safe for Them
Safety must be your first priority when renting to college students. Most students will behave responsibly, but you can not ignore the risks. Give them a fire extinguisher and teach them how to use it, some candles if the light goes out, a daily cleaning facility, and good food if you are responsible for that. Take necessary steps for their safety and well-being and charge extra for it. Parents will be happy to pay for it.
6. Do Monthly Inspections
Mention on the lease contract that you will do a monthly inspection. It may not be required if the student follows all the rules you have set. But sometimes, you just have to follow the procedure and take the necessary steps. Tell them prior that you are coming for it. You may not need it if the relationship between you two is good.
7. Make Insurance Policies
It is also an optional step. You may want to take it if you feel like it. As new renters, students might not even know renters insurance exists. Most people do not want to pay for it, but it may help you sleep well and remove one more possible problem that may cost you money in the future.
8. No Night Parties and Noise Complaints
I have told you that you must have some strict rules, but this party and noise complaints can occur after you have warned them. Write it in the lease agreement about it and want them one more time and possible penalties for it. Students will follow it, but sometimes they try to hide these things from you. Be aware and warn them.
9. Rent by the Bedroom
Do you want to increase your cash flow by renting to college students? Then, rent the room by bedrooms, not the whole unit. You can also rent it via no of beds if you can. That will also increase your cash flow. It also helps evict problem tenants without removing everyone from a single rental. Use your mind creatively and make more money.
10. Solve all of their Problems
Those students must not have any problems with the house they are living in. Be a tough guy but solve their problems. If they are facing a problem with other rents in the neighborhood, solve it. Do everything you can so they can study better in that property. That will increase your reputation as a responsible landlord, and the demand will increase for your house.
So these are the best ten tips for renting to college students and what you must follow to protect yourself and your property without disturbing your reputation in the market. A rental unit near a college is the biggest cash flow producer, but now it’s not like renting to a family. You have become a parent here and look for those students.