If you are considering a multifamily building, you may want to consider your prospective tenants. While some people choose to rent to families or the elderly, others may choose to rent towards young people, including college students.
According to Appfolio, owning a multifamily home near a college or university can draw a steady flow of tenants.
Benefits of renting to college students
With many young people returning to school, there is a need for college housing. Instead of typical dorms, many people choose to live off-campus to avoid room and board fees on campus. One of the biggest concerns about renting to students is income. Some do not have a steady flow of income, however many have cosigners and rent paid for by parents. In fact, some parents will pay you upfront for the year.
Students tend to be less picky than other renters. They may not want to have the best appliances or latest decor.
Avoiding the risks of renting to students
To ensure that you do not have as many risks, you should have a lease tailored towards college students. Some student clauses include maximum occupancy, damages, cosigners and noise clauses. You may want to think of rules that you may not have for other renters. For example, you may want to mention no one can climb onto the roof, that no one should have grills, fires or fireworks at the apartment.
Additionally, you may want to consider having the student pay for utilities since he or she may not realize that blasting heat or AC may have consequences.
