Upsides and Downsides of Renting to College Students

[Nicholas Spinazze]

My wife and I have acquired some land really close to the university in Northwest Arkansas. We are building 2 long term SF rentals each with a mother in law suite we plan on using as AirBnbs. The rents in the area are definitely higher for properties that cater to college students and we plan on specifically targeting college students. However, we'd love to hear from the BP community on their past experiences renting to college students? Did you require parents to co-sign the lease? Did you take steps to prevent parties and if so how did that work out? 

[Will Fraser]

Woo Pig Soooie good sir!

As someone who has been on both sides of this equation in the NWA market I can say:  there are some extreme upsides and downsides.

The upside is that unless you build or buy something near campus that would appeal strongly to the staff and various others who are want to live near UofA then you are likely limited on options.  The non-students who tend to live near the university tend to buy and rent different types of homes than university students living near campus.

While some students can be rough on the properties, the cashflow is nice and it's a good way to afford some prime real estate that has an evergreen demand.

If you choose to rent to traditional students you should absolutely have their parents co-sign.    

You may be able to use noise monitoring devices, or you can design the space to be party un-friendly.  Alternatively you can work to build good rapport with the tenants (or hire a PM that does) and work to create a culture there that respects that parties are not allowed.