Renting to college students

[Tim B]

I'm trying to buy a single family rental house in an area with 5 private colleges - lots of demand for student housing. Students will typically pay $450 to $500 monthly, per room - 12 month lease - parents actually sign the lease and pay the rent. So a 4 or 5 bedroom produces $2000 or $2500 monthly income.(price range $180k to $220k - taxes $3600).

Do any investors have experience with student rentals - they seem like money makers - What are the pit falls, other then students being hard on the property?

[Aaron Catt]

Frankly, you're better off buying a 2 bedroom and renting to 'masters' students or TA's.

Getting involved with 5 people on a lease is a BIG time eating monster. In fact, multi-anything is usually higher turnover and higher excuses from tenants.

I have 2 college rentals and they are SUPER!

Don't get caught up with potential rents, but determine the time it could take to manage 5 different rooms.

I bought my first college rental for $92k and buffed it out and bring in $800 per month.

If you DO rent to students, get their parents to co-sign and capture a large deposit and have the parents pay you directly. Also, be good about your move in inspection so that you don't get stuck with any damages.