Renting property as rooms to university students

[Colin O'Neill]

Hey BP Nation, I have a duplex that is adjacent to University of Massachusetts-Lowell, and when I move out of my unit, I would like to consider renting to multiple students instead of a traditional tenant. Is this wise? What are the pros and cons? I'm not sure where to even begin looking for tenants . Any advice would be greatly appreciated. Cheers! Colin

[Melonie McCallum]

Hi Collin, I love student rentals. I am in the Atlanta area and have found that my per room rates are higher than what I can achieve renting to one tenant. My units are fully furnished and include all utilities (cable, internet, water, lights etc.). This cuts back on roommate infighting because someone doesn't have their share and limits property deterioration. My deposits are one month's rent and I preform a background and credit check. This sems to set the tone for the more serious student (many of my tenants are grad students). Most university's have ther own student newsletter and or Facebook group. When I am looking for a tenant, I place an ad. The charge is typically minimal. I also use other roommate search sites like Easyroommate.com. I pay the annual fee just because it is easier for me but you can sign up for a shorter contract period to trim your expenses. Typically, I write my leases in 6 month intervals with a month to month from then on. This gives me an out when I have a roomie who has proven to be a difficult tenant. I haven't had many students who want to let the space go when school ends for fear that they will not be able to find a unit with the creature comforts I have put in place. In addtion, the space is very attractive to young professionals who want to save money for their very own home. I have been playing around with the idea of AIRBNB rentimg for the summer breaks. I haven't taken the plunge yet. Honestly, my issues with tenants have been miminal. I have over improved the furnishings (Thrift store and Craigslist finds) so that it is appealing to a younger crowd. The students really seem to appreciate the "upscale dorm look motif" even if the furnishings are second hand items. Let me know how I can help. All the best Collin!