Stories of Student Housing

[Josh Mitchell]

Can anyone share with me the ups and downs of student housing? Besides the obvious of being able to charge higher rates due to *must have* housing for students, and the higher costs of repairs due to, well, college. Also, was told to have parents co-sign all leases is a good idea.

Is there anything more that someone has expierenced with student housing, or specialize in this niche? Should you expect to have a higher ROI if the house is right? I would love to learn more as there are several homes in the surrounding areas that I would love to jump on, but want to know exactly what I am getting myself into.

Thanks in advance!

[Karl Pierre]

Josh,

I have 3 student housing rentals in a college town in NY.

Regarding ups and downs.  The positives are higher rent rolls especially if renting by the room.  The downside is the fact that you are renting to college students that are relatively immature and can't resolve simple issues like changing a light bulb or unclogging a toilet.  They will call you for every little problem.  But overall as long as you are extremely close to the university and the campus cannot provide enough housing for students you will do well.  Another downer is excessive wear and tear as students are moving in and out regularly.  Suitcases banging up your walls, stair cases doors etc.

Co-Signing leases:  I have never done it and rarely run into problems with rent collection.  Most college students will be able to cover their room costs, however if renting a whole house/apartment you might want a co signer to hold accountable.  I highly recommend renting my the room which diversifies payment.  By renting to a group you will be in major trouble.  Groups are typically sports teams or frats they will party like there is no tomorrow and run into payment issues as they consistently overspend in the booze department.  Booze trumps rent my friends!  If possible get a parents CC and authorization to charge it if rent is more than 5days past due.

Higher ROI- Yes if done as rooming house. I collect on average 6k a money in rent per property by renting it out by the room. The neighborhood commands 3000/month for a home rental. I include all utilities including internet and excluding electric. Electric is divided equally among tenants.

Overall...do it.  Rent by room and the student with the most sense should be your internal manager.  Shave off a few bucks for that duty.  That person is made responsible for bringing trash to the curb side and reporting maintenance issues to you.

If you have any other questions I can be reached here or by email at [email protected]

Karl