9 Month School Lease...who has done this?

[David Vitarelli]

Hello BP! I am looking at a rental property at the Jersey Shore. The house I am looking at is in Atlantic City and is very close to Stockton University. I am considering renting the house to students September through May..then doing short term rentals during the summer season. However, I don't have any experience with 9 month leases for the school year. I would love to get the perspectives of others that have experience with this. Thanks!

[Colleen F.]

I can speak to this because it is the standard in our area for URI where some homes are used as beach rentals too. I haven't heard of it in NJ. It will work if it is standard for your area  and also attractive as a beach rental. 

Here are some things to keep in mind.

1. A 9 month lease for us was structured from the day after labor day to a few days after finals for 9 payments. I did not prorate rent. If they wanted the additional time until just after graduation they paid 9 equal payments, if they opted to leave after finals I gave them a little discount on the last payment.  It is best not to have a house rented when there are no classes since the temptation to party is high.  It also had an escalation in the rent cost for failure to vacate but I never had a problem with the students leaving. They left a mess but they left.

2. It needs to be furnished. In our case for students that was everything but linens and pillows (except we included high quality mattress covers). We included silverware, pots etc, it is just easier.  The furniture needs to be tough but also acceptable to beach renters. (plastic cups- every glass gets broke). For summer renters you go in, do a thorough clean and replace, put back the linens, towels, comforters, wine glasses, add the beach chairs etc. 

It has to work with the school schedule and there needs to be a market for it.  It also has to be a viable beach rental. I know around UMASS Dartmouth I didn't see the same setup as URI although the beach was just as close. You have to give careful consideration to whether it will be seen as a plus in your area.