Renting to College Students - Boom or Bust???

[Russell Caraotta]

I am reviewing an opportunity for a 5 house parcel currently used today as college student housing. $995K asking price, 31 beds, generates in excess of $111K in annual revenue. Cost of parcel not substantiated by area comps (more realistic number is $750K). Looking for input on 1) buying packaged parcels of homes as a group, 2) college student rentals, advantages, disadvantages, pros and cons, what to look out for. Many thanks in advance. I am a newbie to BP and love the site and interactions among the participants!

[Will Gaston]

Originally posted by @John Mocker:

Russell

Be sure to investigate the availability and cost of the Insurance for the property.  Most companies shy away from College Housing.  There are markets but the cost compared to what you may be used to will be much higher. 

Very much agree with John on this. Make sure you explicitly let your insurance company know that you're renting to undergraduate college students. They will charge more but you need to have the correct insurance if you file a claim. It's been my experience that it can be as much as 2-3 times more than a landlord policy.