Finding Rent for Student Housing

[Ethan Brown]

Hi B.P.

I'm going into college soon, and I'm looking to do my first deal. I was looking to start out with a house hack (or just regular rental without me living there) near my college. Obviously, I'll be renting the place out by the room to other college students, but I'm not sure how to find how much each room would rent for. When it comes to student rentals, how do you all find how much each room would rent for?

Thank You,

Ethan Brown

[Dave Poeppelmeier]

@Ethan Brown that's fantastic that you're thinking this far ahead! However, Student Housing is a very hands-on niche of RE. The biggest thing you have to do is find out what the culture of Student Housing is at your college. Do people stay all year or do leases typically only run 9 months? When is the Rental Season (when students are looking for houses for next year)? What does a nice house rent for? What does a piece of junk rent for? If you don't know these, you might whiff and be severely under renting your rooms or not have them filled at all. 

The other thing you need to understand quickly is how a house works. I know that sounds rudimentary and borderline insulting, but when I was in college, I had no clue how anything worked beyond turning on a light switch and opening the fridge. Your friends/roommates won't have much of an idea either. You need a basic understanding of how the mechanicals of the house work (furnace, AC, hot water tank, electrical box, etc) so you know when something isn't working right and can know when to call for help. What you don't want is a small problem turn into a big (and costly) problem. There are thousands of YouTube videos on how the house works that can help you out.

Student Housing is a fun and profitable niche to get into, and you can hold onto that house long after you graduate. Good luck!