College towns are diverse, but there is one common factor in population: students. For property managers and landlords, this means potential renters and economic benefits in rental need and demand. However, there are certain factors to renting to students – turnaround times, home repairs. All in all, is renting to students in college town properties worth it?
The Good
- With a university as a staple, you can expect very little rise and fall in rental trends close to a university. College towns are densely populated with students, and so there is a consistency in renters and turnarounds.
- Due to the high demand for rentals in college towns, property managers are able to be a little more picky than usual in regards to which tenants they invite into the property.
- Rent in college towns tends to be a little higher due to proximity to the university and subsequent convenience. Rental properties can therefore spike economically when in college towns.
- Student renters are rarely very fussy renters. Their expectations are lower and so property management responsibilities tend to be a little more relaxed.
- Since students are still young, a lot of times a property manager will be dealing with the parents for payment, and so they don’t have to worry about irresponsible behavior due to age. Also, they may pay in advance for a semester or year due to scholarship funds or the like.
- Renting to students gives the opportunity to rent room by room. This allows a property manager to get an even bigger profit due to convenience. In this way, no one roommate depends on any other roommate to pay rent – once they pay, they are covered. A higher charge for room by room rental is appropriate.
The Bad
- The turnaround for students means a lean towards short-term leasing and higher risk of vacancy. Fear not: the high rental demand makes this manageable.
- College students are inexperienced as renters, and so landlords must be a little more active to assure lease compliance and answer questions and needs of the tenants.
- Student renters often means repair and property management. Fear not: it is reasonable to ask for a substantial security deposit for this very reason.
- College students are financially vulnerable. Hopefully they have the support of their parents, but this is not always the case. Fear not: a security deposit can cover rent in the case that a renter does not pay and needs to be evicted.
All in all, even with the hypothetical risks of renting to college students, renting in a college town to students is a pretty good deal economically.
Remember, renters who are not students can also have these risks, and so it comes down to character judgment when reviewing a potential tenant. Some ways to minimize risk are by specifying rules, adding parents to the rental agreement as co-signers, having students pay utilities, conducting regular property inspection, and having an attorney craft a student-geared lease.
Since many students rely on their parents for payment assistance, simplifying the payment process and enabling online payments is a great way to ensure funds are deposited early and all transactions can be made remotely. Rentigo, the latest property management app to hit the rental scene is free for property managers and tenants and offers parents and students the chance to pay their rent online from their smartphone, and even sends reminders and push notifications to help students avoid any late fees.
Done the right way, student property management is really a treat!
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