Student Housing / Rent By The Room Lease HELP

[Alec Hilliard]

I have converted a 3br house into a 5br house and the renovations are finished! 

It's our first deal, about 3 blocks from a decent size college.

I have 5 guys interested in renting by the room for $550/month.

Electric, Water, Wifi Included.

Question is, would you get 1 lease and get the guys to pay their buddy to pay me?

Or...treat it like an apartment and get individual leases from each of them? Another thing I've heard (and may try) is getting the parents on the lease as a co-signer.

Also, these guys have bad credit scores (under 550) - medical debt, etc.

Would this be a concern, or is this "normal" when it comes to student housing?