Renting Per Bedroom vs. Entire Unit

[Chris G.]

Just wanted to see what peoples thoughts are on a situation we're experiencing. We have 4/4 and 4/2 units around 5-10 minutes from a popular college. We've been renting them out by the bedroom to college students around $600 per room and $550 for the shared bathroom ones. Both of these come furnished and include utilities up to $200 per month. We've been struggling to have full occupancy the past year or even get many showings even with our rates being right at market value and units being advertised online. I personally think it has to do with so many similar new constructions being built around the area offering discounts or better amenities and we're only offering 12 month terms compared to shorter term leases some students look for.

It seems like out of the 3 units or 12 bedrooms total there is always 2-3 bedrooms vacant year round with move in and move outs. We we're looking at just stopping the shared living and renting the unit out as a whole. A full unit currently brings in around $2400 and after utilities and association fees that's around $1950 before any other expenses or repairs. Based off similar rentals if we we're to rent the 4/4 or 4/2 as a whole it would be around $1300-1500 with the tenant paying utilities and we would pay association fees.

The downsides in my opinion are less overall rent and the layout of these units seems designed for students with its square box layout with a bedroom/ bathroom in each corner and the living room/ kitchen in the middle I'm not sure many families would rent. The upside is only having 1 lease rather then 4 and the tenant paying utilities. I'd like to hear any other thoughts or opinions on this.