1st property-do I rent by the room or by the unit? (college town)

[Coco Zuniga]

Hi!  I'm marketing my 1st rental and kind of freaking out!!!  I've had about 15 people contact me in the last 48 hours or so (woo hoo!), but I got a question tonight that I'm not sure how to answer.  I emailed her back and told her I would check with my "partner."  (ENTER BP--YOU ALL ARE MY PARTNERS!!!)

Anywho, not sure about renting out by the room.  (that was her question--her daughter is looking for 1 room).  How do you structure it?  Do all the tenants sign the same lease?  Do you get a parent to co-sign?  Do they all pay me individually?   I've thought a lot about this but I didn't think I would get any inquiries because I'm marketing it more towards newly married couples, small families, etc (not stating that in my advertising of course!)

Any help or advice would be greatly appreciated!!!

Coco  

[Kelly N.]

Hi Coco,

I have invested in a "College Town" also, and about 40% of our tenants are students.  My largest apartment is a 4 bedroom, but since one bedroom is very small and the city won't allow more than 3 unrelated adults to cohabitate where the property is, I have been renting it as a 3 bedroom.  I rent the apartment as a whole and put all tenants on the lease, jointly and severally liable.  Their total income must be 3x the rent and I prefer if each makes 3x their portion as well.  I typically do 12 month terms, a lot of students stay for the summer or sublet (with approved applicants), but I have done shorter leases when I want to adjust the lease end date to make it coincide with the best time to have a new tenant move in (late August/ very early September, or at least summer time) or if I have a high demand unit and know it won't be an issue to rent it again- namely my cheaper one bedrooms and studios.

I prefer not to rent by the room- I envision having to get involved in housemate squabbles over fridge space or cleaning and I really don't want to be bothered with that.  They are all on the same lease, and parents cosign if the income requirement isn't met by the students. I allow them to pay me individually, but if it is a couple living together typically one pays the rent.

Hope that helps a little,

Kelly