If you have a rental property near a college, you may want to consider customizing your lease to sort of cater to that niche and also protect your assets. Renting to students has a plethora of advantages: for one thing, you don’t really have to advertise a whole lot as word of mouth is key in this demographic. These properties are also considered fairly prime locations and you may have a high turnover, but you probably won’t see your units sit vacant for very long.
If you’re going to be renting to college students, though, it’s probably best you get this image out of your mind.
And replace it with this one.
Or possibly this one.
While it is true that not every college kid or group of college kids is going to turn your unit or rental home into a flop house, it stands to reason at some point, you may be dealing with some aftermaths you’d rather avoid. Acting accordingly can give you a healthy return on investment for your property, while not requiring you to pay a fortune in clean up and repairs at the end of each lease.
One of your biggest assets when you are working with this demographic may be a mid-year summer lease in addition to shorter term leases for the rest of the year. Keep your move in and move out dates specific so that students can work with them and give yourself time in between for clean up. You might also include quarterly inspections, but be sure that you check with local laws in respect to that and other restrictions you can impose in the lease.
When renting to students, you may want to charge a higher security deposit. Make sure that you are still yet abiding by your state laws, but protect yourself. At the end of the lease, be sure that you return the full deposit when appropriate within the set time. If there have been damages, deduct them, but return the portion that wasn’t used to the tenant in a timely fashion.
When in doubt, you can also ask for a co-signer. Because students often have limited credit and minimal to no rental history, this is a protection you should consider. Additionally, be very clear about rules in terms of roommates. Be sure that those that are moving in are on the lease, and have a clause that includes something about length of stay for guests. In every college town there will almost always be those people that are just going to crash for a while- yet somehow end up not leaving. So, it’s important to have that spelled out and clear in your lease agreements to prevent having to deal with that at a later time.