Criteria for students housing

[Francesco Barbati]

Hello BiggerPockets crowd! 

I have decided (but always ready to change my plan) to buy and hold to rent to students, and focus around the university in the city I live in.

What are the criteria to choose the best property? How it differs from other kind of renting? What should I add/change to the equation to make a profitable deal?

I am new and any kind of advice or consideration (even if very basics ones) would be very appreciated!

[Denise Evans]

Student housing is generally on automatic renewal, with students signing leases in October or November of this year for leases from August 2017 through July 2018. Check in your market to see what they do. If you miss the student window, you will have huge vacancies for an entire year.

Make sure the parents always sign as guarantors unless the kids are under legal age. Then the parents must sign as co-signers. The difference is, if the kid reaches majority of rejects the lease, a parent guarantor is also off the hook but a parent co-signer is not.

Specify access rights in the lease. Parents typically want access (even if they don't have their own keys) for surprise visits, and to get the kid's stuff if he drops out. Unless they are tenants, they are not entitled to that. Unless the lease specifically says they can have access, in which case they can.

Student housing is generally management intensive.  I recommend monthly inspections. I also recommend an online payment portal.