Student rental question; accepting rent per person? Or one?

Question

Hello BP hive mind, I am curious what people's thoughts are regarding allowing students to each pay me their portion of the rent [ie, 4BD house rents for 1300 between 4 people = $325/per person] Do I ask one person to get me 1300 by the 1st of the month or allow each to pay me individually?

I think it would be better for my organizing and peace of mind to have one person pay me the total but from the students I've spoken to, they aren't accustomed to that. Do I need to train them? I'm worried that will scare people away as this is my first property and I'm worrying I'll never rent it at this rate...

Thank you for offering your thoughts!

Chris Eaker · Answer

Brian R.

I have one student rental and each person pays me separately via Cozy. When I set up the lease initially, I entered the total amount and added all three of them. They decided how to break it up. It's no additional work for me and easier for them. But the lease is written such as even if one is late, they are hit with the entire late fee. I've only had to do that once.

Colleen F. · Answer

I give the parents the account number and they auto deposit from their side. I wrote up a little instruction sheet.  I tell them it needs to be in the account on the 1st  and it usually takes a few days to process. Their bank can tell them how long.  Some do it for each deposit, some always the same time so I  have to assume it is set as an autopay.   URI is a public university so you get all kinds of backgrounds some of the more paycheck to paycheck parents may need guidance but most are happy to do it this way and don't push back or need guidance. They are relieved not to be paying by the semester like they have to pay the university.

Colleen F. · Answer

They should be jointly and separately liable for the rental and sign one lease but I allow them to pay via ACH separately.  If I am missing rent from someone they all get a notice.  If you set it by ACH at least with my bank I see whose mom/dad paid by name.  On occasion I have had a tenant who is independent and pays cash I have had them deposit into my account which is at the bank on the corner by the house so very easy and since it always only 1 that works.  It is quicker if you do it this way.   It is helpful if you have one main contact for problems or other issues with the house, but rent is everyone's responsibility and I think peer pressure can help if someone is late. Here it is usual to take a deposit and have first months rent due in the summer prior to occupancy. If they fail to make that rent payment on time I have had friends who just canceled the lease. I usually send a prompt for this one. THat may not be normal in other places.

Dylan Bensinger · Answer

I have no experience as a owner in that situation, but I was in a student in a shared house a few years ago.

The way we did it: All 6 of us signed 1 lease and were liable for the total amount of rent. If a kid dropped out or decided to go on a binge instead of pay rent we would all be responsible. That kept us on top of each other both in terms of bills and school.

that said, our landlord allowed us all to pay our portion of the rent separately via check which was much easier than collecting cash from 5 other guys and paying 1 check. I guess this is somewhat of a hybrid between separate leases and one rent check.

I do know a couple times we had roommates late on rent and the landlord addressed the issue directly with them, not the whole house, but we also had roommates that paid a semester at a time so he was probably up overall.

More leg work for you, but its a nice convenience for the students. Either way I would make sure everyone is one 1 lease so ultimately everyone in the house is responsible.

Account Closed · Answer

Brian R.

I do not have experience in student rental but I would have them send one check. All tenants are on the hook for 1300/month how they divide that up is on them. That way if you get roommate drama and one tenant moves out you do not have to tract them down, the remaining 3 are still responsible for the 1300.

Also not sure how the rooms are but my college house had a huge third floor room and a small first flow room so we did not divide the monthly rent up equally 5 ways.

Just my thoughts, best of luck!

Mindy Jensen · Answer

Brian R. , this question comes up from time to time, and accepting partial rent will always bite you in the backside.

If 1 of 5 tenants pays, you have accepted partial rent and most states get all weird about this.

You can allow them to pay you with 5 checks, but I would stipulate that all 5 checks be handed over at the same time, rather than one this day, one that day... I'd also have them get together and nominate one person to be responsible for collecting and sending to you.

But I would rather just have one check from all 5 of them.

Thomas S. · Answer

One payment for the entire amount is the preferred system. This simplifies the landlords responsibilities as it requires the collective to police the payments. When each student pays separately the landlord is left having to often chase more than one tenant for payment. They will hold the position that if they have paid their portion it is the landlords problem to collect the rest. With a one check system the students must police each other.

Colleen F. · Answer

I don't use cozy but it is I understand a good tool.  I just have them direct deposit. Some of the parents are out of state so it is easier for them. My bank account number is on the bottom of any check I write so I don't care if they get it, to be extra careful you can have an account that it transfers into after they pay. The parents generally want to pay directly even with good kids  they are used to it. Getting checks just delays the whole process.

@Mindy Jensen on  accepting partial rent state law matters, partial payment doesn't matter  in RI, it won't stop the ability to file an eviction if that is what you would worry about. It could matter in PA I don't know but  there  are ways to deal with it. In general when I have had issues with students they don't fall into the area of eviction. Students have disappeared and you just have to be firm with the roommates letting them know it is there problem. I just had one in December and I told them you need to get someone or pick up the slack. They had to do both.

Deanna McCormick · Answer

So ?? is this house zoned as rental, how many occupants does your city permit to live in a home that aren't related.. be careful you don't exceed that number.. if you personally aren't also living in the house.

If it's legal,, I'd rent all on one lease, if someone move out,, have a roommate off lease agreement ready so they can sign that person off and have the flexibility of signing some one else that qualifies on.

Student rental question; accepting rent per person? Or one?

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