Renting to college student group-consider as single payer/tenant?

Question

my daughter will rent our new town home, and has one friend arranged and approved as roomie. They are looking for an additional 2 gals, and I now have concerns about approving these other girls, and ensuring a steady cash flow as things gel.

I will have all fill out application, get co-signers, have a standard lease. I guess I plan to require a single check or electronic payment from the group, and I plan to have pretty strict late dates and fees.

But how do I help my daughter (and myself) by making her responsible to her group, and still wave the bat of eviction for those who might take advantage of the others? I don't really want to punish the 3 if one turns out to be a deadbeat. Ideas, experience?

Account Closed · Answer

So, they'd be your tenants?  If so, I'd rent the rooms out individually and put them all on month to month agreements.  When there are problems (yep, not "if" lol), each can give 30 days notice, and so can you.

I like the Nolo California book and their contracts.  It's what I used renting out 25 units in Santa Clara for 8 years.

http://www.nolo.com/products/the-california-landlo...

There's a Father's Day sale going on with 40% off right now, which I just saw when getting the link for you.

I wrote a lengthy answer to someone this last week about how I'd structure renting rooms out.  Maybe you could search for it, if you want to read it.  But, if you can afford it, I'd put a little fridge in each unit and a microwave, and maybe even a little coffee maker, to lessen the traffic in the kitchen.  I'd hire a cleaning service and include it in rent.  Most of the arguments will be over cleaning and stealing food, and wanting space in the kitchen at the same time.

I'd also include utilities in the rent, and if you have to put one of those covers with a lock on the thermostat, so be it, but if you do the split the utilities thing, they'll argue about that, too.

Just eliminate as many things that will cause arguments as possible, and just do month to month contracts for each separate room, is what I suggest.

Because it's really a mess when a group rents and one wants out, or they all want one gone and they can't get rid of them.

Here's also a roommate agreement that's good.  It's important to cover pets and overnight guests,  because they'll argue about that, too, lol.

https://www.nolo.com/legal-encyclopedia/renting-ho...

Kiki Helland · Answer

I had my daughter in a similiar situation with a home we own as a rental. We set up a lease with each room as a "Unit" A,B,C. I used a lease agreement from a local landlord association, which had built In language that applied to the specific state landlord-tenant laws. I was able to customize the forms online and then download.

I checked references and I found that students were a good source because they have student loans that basically pay for their rent and are longer term. My daughter was in charge of screening applicants that she could measure if they were compatible. Luckily we had two long term tenants sharing and they always paid on time. One caveat, is that your daughter needs to establish the rules right away. If she intends to be friendly with her roomies, then she should set a list and schedule of chores and duties and who is replacing household goods like toilet paper, kitchen paper towels, taking out trash can to street, etc... But these things are typical of any roommate situation, however when roomies see your daughter as live-in manager they may see her as the one ultimately responsible.

I would include all the rules in the lease, but allow some wiggle room to keep them happy and long term. Depending on the market you are in, it's supply and demand and you've got to make your rental more attractive.

Good luck!

Reed Sasamura · Answer

Not sure how the state laws are in California, and Sue K.  has several years of rental experience over me, but from the rental and management side of things in Boston, I most always recommended to landlords that they rent out to groups rather than by the room for the following reasons:

1) It is/was generally easier to rent the entire place rather than individual rooms (and much easier on the paperwork side of things too).

2) Generally, groups of friends get along better than groups of complete strangers.

3) When a roommate wanted out (which was common given that many of my clients and tenants were students going home for the Summer), the tenant moving out or the remaining tenants agreed to find a "subletter" with the approval of the landlord for the remainder of the lease, otherwise they'd still be responsible for their share of the rent. It takes the burden off you as the landlord to find a new tenant, at least not until their lease is up, which in Boston typically ran for 1 year.

Just make sure everyone, co-signors included are bound jointly and severally on the lease.

Colleen F. · Answer

If she and friends want to rent it I would do it as a group.  If you decide to do it by the room (if she needs to find/approve  the other two people ) you may have more vacancy.  I had a friend who did the former with his college age sons. His own son was a bigger issue for him but he worked it out and found friends to rent it with.

Renting to college student group-consider as single payer/tenant?

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