If you have a property located close to the local college or university, you could be missing out on a prime rental opportunity. Millions of students each and every year are in search for housing. In a study done by College Board, the percentage of students who live off campus is around 44%. That number definitely varies though as some cities have a rate of 87% of their students living off campus. College students tend to have a bad reputation in the eyes of landlords. College students are seen as too immature, too loud, and inexperienced when it comes to living on their own. If you can get past those and come up with a good strategy, you will be on your way to making college town profit town.
What College Students are Looking For
When it comes to choosing a place to stay, college students are looking for different amenities and have different priorities than someone who is looking to rent for something for the long-haul. Students are looking for a decent place where they can take care of their school work, relax, and get a good night’s rest. Here are some priorities to think about to get you a step ahead the competition:
- Internet: With this new day and age technology is changing and improving more and more every single day. Universities have capitalized on this by posting most of the assignments online for students to access. Students need high-speed internet to take care of their schoolwork, and to use it to access the streaming services that have taken over the age of television watching
- Affordability: Most students do not have a strong source of income, so affordability is definitely key. Because of this, students will look for roommates so that they can split the price and keep costs down as much as possible.
- Campus Proximity: In the end of the day, students will be spending most of their time on campus whether it is going to class, their extra curriculars, or even a job on campus. The closer to campus they are, the better.
- Laundry: Most students see going to a laundromat as a big inconvenience. Make it easy for them buy having a washer and dryer on-site. You can place them in each unit or make a mini-laundromat where your tenants can share in a common area. The tenants will be appreciative, and you will have a more desirable rental.
Benefits of Renting to Students
Students have had a bad reputation for decades. There are always the fears of the big college party tearing up the place, or the daily noise complaints, etc. More times than not, college students are going to be too tired for all of that as they are spending their days doing schoolwork, extracurricular activities, and working a job after that. Yes, there are always a few bad apples, but if you have a detailed screening you can weed the bad apples out.
Constant Demand – As long as colleges and universities are accepting students and making money, someone will need a rental. Thousands of students are going to be on the lookout for a place to call home, this means you will not have to worry about vacancies.
Consistent Payment – More times than not, students will not be making enough money to pay for school, pay for a place to stay, etc. Usually financial aid covers the cost of living and housing. You will even see a parent figure pay the rent. With both cases, you are more likely to receive your rent check every month.
Higher Cost of Rent – Yes, students are looking for the most affordable options, but most of the time they will have at least one roommate to help split up the cost. Let’s say you are charging $1500 for a family to rent out your 3-bedroom property every month. If you rent to a group of three college roommates, you could charge $2000 instead; each person paying $667.
College Tenants: What Makes it Worth it
You are always going to hear that college students are unreliable, trouble makers, and unpredictable, but in most cases, it is the complete opposite. Most students are just trying to make it through the day; they are going to school, doing homework, going to work, and are involved in extracurricular activities. Take the time to screen all of your potential renters, ask questions, find out as much as you can to help yourself sleep better at night.
If you are renting properties near the local university, you could be sitting on a potential goldmine. Colleges and universities are not going away anytime soon, so utilize the opportunity; there will always be a constant demand for a place to stay. You won’t have to worry as much about a consistent payment as they normally will have help from a parent figure or financial aid. Finally, you will even be able to charge a higher cost of rent since most students will need one, two, even three roommates to split the cost of living. All in all, renting to tenants in college can end up being a huge benefit to you as a property owner!