Renting to college students is completely different from renting to regular tenants. While they can be an excellent source of funds, the demographic comes with specific quirks landlords must be prepared for. College students have different priorities and responsibilities, which may affect what they’re looking for and how they use the rental property.
What are the Considerations When Renting to College Students?
Renting to college students can be lucrative, as the population is constantly on the search for good places to stay during their college years. If a rental property is close to a college, there’s almost a guaranteed pool of potential residents. However, landlords also have to consider legal considerations. Landlords need to understand these thoroughly to protect themselves and their investments.
1. Fair Housing Act
Student housing property management comes with one big consideration: Fair Housing Laws. Under the Fair Housing Act, landlords cannot refuse or discriminate against tenants based on color, race, religion, disability, national origin, religion, sex, or familial status. Hence, they cannot refuse college students because of their status or age.
However, there are exceptions. Landlords living in single-family homes are exempt from the Fair Housing Act. They may be exempt if they rent out only a single room within the house. Nonetheless, it’s important to consult a lawyer before taking any potentially discriminatory action.
2. Rights of Tenants
In Florida, landlords must provide habitable living environments to their tenants. They must maintain the property and ensure it’s livable and in good condition. Landlords also have to make the necessary repairs on time. Furthermore, landlords cannot enter a tenant’s property unannounced. They must notify the tenant at least 12 hours before they plan to enter the premises for repairs or maintenance.
3. Rental Contract
The lease agreement for renting to college students must be clear. It should delineate the rental price, security deposits, advances, and other charges or fees like HOA dues. College students do not always have a stable source of funds, which might make them a liability. One way to reduce the risk is to ask for a guarantor or co-signer—like their parents or guardians. This way, landlords can rest assured knowing the rent will be paid on time.
4. Maintenance
Managing student rentals can be tough, especially since college students can sometimes be rowdy or unruly. Tenants may not always maintain the rental property as the landlord wants. Nevertheless, landlords must comply with local ordinances and building codes. They also need to keep the environment habitable and hazard-free.
As such, landlords should know that property maintenance might be more challenging for college student tenants. Moreover, they may not be as responsible when addressing maintenance issues or requesting repair.
In addition, landlords must provide specific amenities to tenants, including heating, air conditioning, and hot water. If these systems fall into disrepair, landlords need to repair or replace them within a reasonable amount of time.
5. Security Deposit Requirements
Landlords may provide a written contract that includes all the terms and conditions. One of the terms can be a security deposit collected before the move-in date. This acts as security in case of damage to the rental property. Standard practice mandates one to two months’ rent, depending on the terms and unit.
Tips for Renting to College Students
It’s not easy renting to college students. Apart from the legal considerations, landlords must also know how to appeal to the demographic and how to deal with them. Here are some tips that might help.
1. Set a Standard Screening Process
Tenant screening can make or break landlords’ experience dealing with tenants. A troublesome tenant might lead to increased repair and maintenance costs, and tenants who aren’t liquid or financially stable might also have trouble paying rent.
For this reason, it’s best to create a standard screening process that allows landlords to understand the tenant’s background and history. Consider checking the following:
- Employment history
- Credit report
- Rental and eviction history
- Income level
- Criminal background, sex offender status, and terror watchlist presence
While college students may not have much rental, credit, or employment history, doing it for their co-signer might make sense.
2. Ask for a Security Deposit
Security deposits are safety nets for landlords. They allow the landlord to cover the cost of property maintenance and repair if any damages occur. Given that students often host parties or invite friends over, there is an increased risk of property damage when renting to college students.
Alternatively, landlords can charge a move-in fee to cover the cost of damages. This is a good choice because move-in fees are not as highly regulated as security deposits. Moreover, they’re non-refundable, so the landlord is guaranteed extra funds for maintenance and repairs.
3. Consider a Co-Signer
When preparing a rental application for college students, requiring a co-signer in the terms and conditions might be a good idea. Typically, college students do not have employment histories, credit histories, or sources of income. A co-signer can vouch for the student and legally take responsibility for rental payments if the student fails to pay. However, modify the lease agreement to include the co-signer’s responsibilities.
4. Set House Rules
House rules are a great way to deter property damage and conflict within communities. Some common rules involve cleaning, insurance, and basic maintenance requirements. The landlord may also require the tenant to maintain a specific temperature to protect the property’s internal systems and components. Landlords may also specify that utilities are the tenant’s responsibility.
Additionally, many landlords prohibit using candles, fireworks, and other fire hazards indoors. They may also have rules against smoking, keeping pets, hosting parties, and maximum occupancy.
5. Post Online Ads
Online shopping is all the rage, including the rental property market. Make sure to advertise the property online on Craigslist and Facebook Marketplace. Remember to highlight the nearby schools, public transportation systems, restaurants, and other attractions. Most college students will want to live in a commutable place with access to different establishments.
6. Highlight Amenities
Desirable amenities, such as air conditioning, utilities, furnishings, and WiFi, can make rental properties more alluring for college students on a budget. Make sure to also highlight other relevant amenities and facilities, such as co-working spaces and fitness centers.
7. Include Photos
Don’t forget to include lots of photos in the listing. The younger generation is more visual and may want to see what the property looks like before even glancing at it. Some students may also be traveling from across the country and don’t have the time or capacity to visit the place in person.
8. Consider Utilities
Utilities like electricity, WiFi, and water can be included in the rent price. Doing so can entice more college students to rent the property as they won’t worry as much about these necessities. Remember to get a good Internet Service Provider (ISP) for the WiFi. College students do much of their work online and may need fast internet speeds.
9. Set a Fair Price
College students are not high earners. In fact, many don’t earn any income at all. Set a competitive rate that’s reasonable for both sides. First, consider the property’s size, location, amenities, and furnishings. Do some market research and check out how much other landlords charge for properties in the area.
A Good Opportunity
Renting to college students is an excellent opportunity for landlords with rental property near schools. Students are always looking for places to stay nearby to make college life more convenient. Just consider all the legal ramifications and lifestyle differences college students have.
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