Madison, ME · Member since 2017 · 23 posts · 6 votes
I am looking at buying my first rental, my girlfriend and I plan to house hack a modular 4-plex we put on some land near a college town. I have most the details figured out but a thought I had was most college kids do not have an income. When I was in school I only worked summers and paid my rent through my refund I got from borrowing addition money on top of tuition to cover rent and expenses. I never gave it a thought that my landlord didn't think twice but now on the other side of things how would you guys feel about a tenant who had no income but insisted he had the money, assuming they didn't have a cosigner. I would have a hard time not renting to them only because I was once in that exact situation and never missed a payment.
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
8y
@Travis Emerson There was a BP podcast on college rentals several months ago. It's worth searching for it.
The guest on that episode said that he rented his units out by the bedroom, which dramatically increased revenue.
He also said that he got personal guarantees from every student and their parents. And if I recall correctly, he got them all to sign a contract that said each and every student and parent are jointly liable for damages to the unit.
Starkville, MS · Member since 2017 · 12 posts · 2 votes
8y
I'm in a college town as well, Starkville, MS. I finished college in 2013 so I can reference my own experience. My parents gave me the money for my rent, one roommate worked, and the other used student loan/aid money. MOST of our friends in college didn't work. It was very common to use student loan/aid money for rent. I don't believe a single landlord in Starkville does an income check for students. Students also have to buy books and eat. They find a way.
Attorney · Attleboro, MA · Member since 2015 · 412 posts · 165 votes
8y
I would press for a parental/older sibling co-signer if at all possible. I have a client who owns a lot of property near Boston colleges and he almost always get a parental co-signer or its a no go.
I would not rent out all units to students without a co-signer. Maybe one unit and see how it goes.
If you feel bad for the students, I can understand. Be absolutely sure that if there are going to be roommates the lease is drafted so that ALL jointly responsible and that they understand that.
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
8y
@Travis Emerson There was a BP podcast on college rentals several months ago. It's worth searching for it.
The guest on that episode said that he rented his units out by the bedroom, which dramatically increased revenue.
He also said that he got personal guarantees from every student and their parents. And if I recall correctly, he got them all to sign a contract that said each and every student and parent are jointly liable for damages to the unit.
Front Royal, VA · Member since 2016 · 306 posts · 240 votes
8y
I am looking into college rental now. College kids are resourceful between loans, jobs and family they find a way to pay rent. I always figured it out when in school. One thing I have been evaluating is offering option of a one time payment for school year, offering a slight discount so get all money at once and they dont have to worry about paying rent over year. I know I worked all summer to save enough for rent over year and worked during school to cover food and books. I would of jumped at chance to pay a discounted rent and be done with worrying about paying monthly rent payments. Would of made managing my money easier and figure out how much beer I could afford
Student rentals require a co-signer/guarantor. Reality is you are really renting to the parents since the students could never pass a security check. You screen the guarantor not the student and hold them responsible for rent payment. The difficult part for student landlords is the guarantor often feel they can intervene and be involved in the lease. Do not allow that to happen, deal only with the student after the lease is signed until the student defaults on the rent.
For safety sake in order to mitigate your risk do not rent to 1st year students. A very high percentage will drop out at the end of their first term.
Learn your state landlord tenant regulations, operate strictly from the perspective of a business and adjust your attitude ("I would have a hard time not renting to them). That attitude will only lead you to bankruptcy. There is zero tolerance for any emotion in business. You will face a very steep learning curve so be prepared.