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Updated about 8 years ago, 12/10/2016

User Stats

30
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5
Votes
Steven Scheer
  • Milwaukee, WI
5
Votes |
30
Posts

College Rental Leases

Steven Scheer
  • Milwaukee, WI
Posted

Howdy, good people. In the next few months, I will be purchasing a duplex to rent to college students. I was wondering if the people of BP that rent to college students either charge a predetermined rent (say, $1,000 per month) or do you charge per bed (say $300 per bed, per month for three beds OR $250 per bed, per month for four beds)?

Be blessed!

-Steve

User Stats

2,053
Posts
1,591
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Daniel Hyman
Tax & Financial Services
Pro Member
  • CPA
  • Milwaukee, WI
1,591
Votes |
2,053
Posts
Daniel Hyman
Tax & Financial Services
Pro Member
  • CPA
  • Milwaukee, WI
Replied

@Steven Scheer My clients in Madison have an old frat house that was rehabbed. They Have studios and 2 bedroom apartments. All are rented out by the unit. Good luck on the duplex purchase!

  • Daniel Hyman
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User Stats

30
Posts
5
Votes
Steven Scheer
  • Milwaukee, WI
5
Votes |
30
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Steven Scheer
  • Milwaukee, WI
Replied

@Daniel Hyman, thanks for the advice! Madison has to be a very lucrative market. UW has to be a gold mine.

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User Stats

86
Posts
21
Votes
Kaleb Carsten
  • Investor
  • Mitchell, SD
21
Votes |
86
Posts
Kaleb Carsten
  • Investor
  • Mitchell, SD
Replied

I've seen it done both ways. But I'm planning on doing it by the predetermined rent that way my income is the same regardless of one of the students decided to move out early.

User Stats

30
Posts
5
Votes
Steven Scheer
  • Milwaukee, WI
5
Votes |
30
Posts
Steven Scheer
  • Milwaukee, WI
Replied

Thanks, @Kaleb Carsten! I was thinking the same thing. I just read in a book that some folks do the charge by bed approach.

User Stats

33
Posts
18
Votes
Brian Head
  • Milwaukee, WI
18
Votes |
33
Posts
Brian Head
  • Milwaukee, WI
Replied

When I was a student living in the downtown area I only recall apartments, duplexes, houses etc. for the unit at a monthly rate.  

From my evaluations, college student ROI is tough around Milwaukee area campus due to the high cost of entry and taxes. I ended up going SFH route, there are great pocket areas in Milwaukee County. Good luck on your adventure - keep us updated!

User Stats

30
Posts
5
Votes
Steven Scheer
  • Milwaukee, WI
5
Votes |
30
Posts
Steven Scheer
  • Milwaukee, WI
Replied

Thanks, @Brian Head! I'm actually looking the Waukesha area for now. I'll invest in Milwaukee when I have some more experience.

Account Closed
  • Madison, WI
34
Votes |
88
Posts
Account Closed
  • Madison, WI
Replied

Well, you're from Milwaukee, and I'm not as familiar with that market. Hopefully Madison can relate.


As for madison: I graduated recently, and student housing rents by the unit. However, it isn't uncommon in the core downtown area to add a "double-occupancy fee"... where if 2 people share a bedroom, there is an additional fee. It used to be $125, but might have increased to $150 per double occupied bedroom.

I will add - that was primarily for apartment complexes in the epicenter of student housing. As it branches out more, i don't know. As it turns to working-class housing, the double occupancy doesn't apply. I don't know about the 1-4 unit homes around UW campus. 

User Stats

93
Posts
40
Votes
Paul Haviland
  • Real Estate Agent
  • Madison, WI
40
Votes |
93
Posts
Paul Haviland
  • Real Estate Agent
  • Madison, WI
Replied

I have quite a few units that are rented by students. 95+% are rented out per unit. I will however charge a $13-$16/person for water. Thus, if there is double occupancy, the ultimate gross is higher.

Also, I have 2 units that I rent out per bedroom (3 & 4 bedrooms/unit). This is quite a bit more intensive when leasing, but I've found that I can squeeze maybe 10% more rent that way. For example, the 3 bedroom is probably worth 1300-1400/month, but I'll rent it for $500/room ($1500). For the individual renters, it is nice because it is much cheaper than any 1 bedroom/efficiency they could rent on their own.

Cheers,

Paul

User Stats

135
Posts
45
Votes
Nathan Schoenborn
  • Self Employed
  • Milwaukee, WI
45
Votes |
135
Posts
Nathan Schoenborn
  • Self Employed
  • Milwaukee, WI
Replied

At my rentals in whitewater, I try and usually get rent by the semester as it's usually paid with financial aid or by the parents. It's a good opportunity to get a large chunk of money at one time. 

User Stats

30
Posts
5
Votes
Steven Scheer
  • Milwaukee, WI
5
Votes |
30
Posts
Steven Scheer
  • Milwaukee, WI
Replied

Thanks, @Account Closed I went to school at the UWW and I  remember that every home I lived had that same lease structure. Does DLK Enterprises still control most of the real estate in Whitewater?

User Stats

93
Posts
40
Votes
Paul Haviland
  • Real Estate Agent
  • Madison, WI
40
Votes |
93
Posts
Paul Haviland
  • Real Estate Agent
  • Madison, WI
Replied

Occasionally, yes. I've found most people who want to rent a room in a shared space are generally respectful and keep to themselves... unless they don't. I've had a few bad experiences, but not often.

I've actually had good luck by having one of the tenants who is renewing be in charge of finding the new ones. That way they can find a good fit. I'll normally give them a timeline of a month or so before I step in (they still have to meet my rental criteria).