Renting out a property near a college campus is a unique experience. Rather than seeking tenants with long rental histories and stable incomes, your target demographic will likely consist of young college students who may be renting for the very first time.
Renting to college students can present both opportunities and challenges for landlords. To take advantage of the highs and combat the lows, it’s important to understand how to effectively rent to college students while also protecting your investment. Below, we’ve compiled a guide for navigating the ins and outs of a college student rental market to market and manage your property right.
In this article, we’ll share the best landlord tips for renting to college students by covering the following topics:
- What to know about the college student rental market
- How to advertise off-campus rentals
- Ways to screen potential student renters
- How to navigate security deposits and move-in fees with student renters
- How to create a student-friendly lease
- What to know about setting a rental price
Understand the College Student Rental Market
Navigating a college rental market can be different from navigating traditional areas. Not only will your tenant demographic be different, but your rental business will also be influenced by seasonal demand, transient tenants, and other unique, college-related factors.
To fully understand college rental markets and what they entail, try the following steps:
Know your renters
College students are a diverse group with varying levels of responsibility, financial stability, and rental experience. While some might be signing their first-ever rental lease, others might be longtime veterans with years of rental experience. Some might have financial support from their parents, while others may be working multiple jobs to pay rent. These differences are important to understand if you’re going to successfully target student renters.
Researching your nearby college or university can be helpful for understanding renter demographics. You can find information on the student population, enrollment numbers and trends, average ages and incomes, and even common majors. This can give insight into your potential renters’ lifestyles and financial situations.
Anticipate a change in demand
One thing you’ll almost always find in college markets is fluctuating demand. Typically, rental demand will coincide with the university’s academic calendar, meaning peak times will come at the beginning and end of each semester.
The end of summer is when you’ll likely see influxes of rental applications and inquiries as students look to secure housing for the upcoming academic year. In contrast, the end of spring is likely when you’ll see demand fall off as many students return to their hometowns for the summer season. Understanding these seasonal patterns can help you prepare for when the market gets tough, such as adjusting your rental rates accordingly.
Identify key trends
Along with changes in demand, it’s also important to understand key trends in college markets. This can pertain to anything from popular student amenities to location preferences. For example, students with hybrid schedules might need a designated office space in their rental to attend class from home. Similarly, students without personal vehicles will likely look for rentals within walking distance of campus. Keeping a pulse on these trends can help you make informed decisions about your rental property, from renovations and upgrades to marketing strategies.
Advertise Your Rental to Students
Once you have a solid understanding of the college rental market and tenant demographics, it’s time to start marketing your property. A lot of this will involve online exposure, as many of today’s college students use digital platforms to find housing. This is where Apartments.com’s listing services will come in.
Apartments.com is the best place to list your off-campus rental property. When you list with us, your listing will be optimized to reach the right audience. Our search filters allow potential tenants to find your property based on their specific needs, such as proximity to campus, budget, and desired amenities. With millions of monthly visitors, you can be confident that your listing will receive maximum exposure.
In addition to listing on Apartments.com, other effective marketing strategies for targeting student renters include:
- Advertising on college community boards and social media pages
- Partnering with the university or local property management companies
- Offering referral incentives for current tenants to refer their friends
- Creating visually appealing and informative flyers to post around campus
Screen Potential Applicants
Once the applications start rolling in, it’s time to start screening tenants. If you’ve done this before in a traditional market, you know it will involve a series of background and credit checks, as well as a review of rental and employment history. However, this won’t always be the case with student renters, as they may not have these same robust credentials.
Below are some tips for screening tenants in a college rental market:
Verify student status
While college tenants may not have a verifiable source of income or robust credit history, they can provide proof of enrollment. Request a copy of their current class schedule or enrollment verification to confirm they are students at the nearby university. This can give you confidence that your potential tenant will have some form of financial support, whether it be from scholarships, loans, or parents.
Consider a co-signer
Co-signers are a common requirement in college rental markets. As mentioned earlier, most college tenants lack robust credit, employment, and rental history. This can make it difficult to gauge their trustworthiness as tenants, which is where a co-signer comes in.
A co-signer, typically the student’s parent or legal guardian, will sign the lease agreement with the tenant, making them also liable for any of the tenant’s wrongdoings like missed or late payments, property damage, noise disturbances, etc. You must screen co-signers just as you would tenants, meaning you’ll want to verify their income, credit history, and rental background. If the co-signer doesn’t meet your minimum qualifications, it might be a red flag for the tenant’s ability to pay rent.
Ask for references
Rental references are an effective tool for screening tenants, particularly college students. They provide valuable insights into a tenant's character and capacity to handle responsibilities. Previous landlords, professors, and employers are excellent sources for references, as they can offer perspectives on a tenant's behavior and help assess their potential as a responsible renter. You can also ask for personal references, such as family friends or mentors, to get a more well-rounded view of the applicant.
Require Security Deposits and Move-In Fees
Security deposits and move-in fees are standard practice for any rental property, and college rentals are no exception. These up-front costs serve as a safety net for landlords, protecting them from potential damages or unpaid rent. However, with student renters who may not have the same financial stability as traditional tenants, it’s important to handle these fees carefully with the following steps:
Determine appropriate deposit amounts
The average cost of a security deposit is usually one month’s rent. However, a landlord can charge more or less based on their tenant’s circumstances. In the case of college students, you might lower expectations to accommodate the renter’s financial situation, as they may not have the means to pay a large security deposit upfront. Instead, you might give them the option of paying in increments or accepting a lower upfront deposit. You could also consider offering a discount on the security deposit to students who can provide a co-signer.
Clearly outline fee structures
When dealing with inexperienced renters like students, it’s important to outline fee structures to avoid confusion or misunderstandings. Throughout the lease agreement, give specifics about security deposits and move-in fees, including cost, payment deadlines, and the circumstances under which they will be returned or retained. It’s important that your student renter and their co-signer, if applicable, fully understand their financial obligations before signing on the dotted line. This will help avoid any disputes or surprises in the future.
Explain refund policies
When outlining rental agreements, it's essential to address refund policies clearly. Make sure your student tenants understand the conditions under which they may receive or forfeit their deposits and fees. By doing so, they are more likely to take care of your property throughout their tenancy, ensuring they can secure a full refund at the end of their lease. This clarity is particularly important when dealing with college students, as their lifestyles might involve partying, drinking, and other activities that could pose risks to your property.
Set Clear Expectations with a Student-Friendly Lease
Creating a clear and detailed lease agreement is very important if you’re dealing with inexperienced renters. However, you don’t want to overwhelm your tenant with too many details. Rather, you should find a balance of conciseness and clarity to create a lease that is both descriptive and easy to understand. You can achieve this balance by using the tips below:
Prioritize flexibility
College students are notorious for their constantly changing schedules and situations. You should be prepared to deal with these changes by being flexible in your lease agreements. For example, if a student tenant needs to sublet the property for a semester abroad or summer internship, consider creating an addendum to allow for this situation. You can also include a clause that allows them to terminate the lease early with proper notice and fees if they need to move out unexpectedly.
Set noise ordinances and party policies
While not every college student is a party animal, it’s safe to assume that there will be at least some noise and partying throughout their tenancy. This comes with the territory of renting to college students, but luckily, there are steps you can take to prevent potential issues. Include a clause in your lease agreement that outlines quiet hours, noise restrictions, and consequences for breaking these rules. Keep these parameters within reason, allowing tenants to live an authentic college experience while still respecting their neighbors and your property.
Define maintenance responsibilities
Inexperienced renters, especially college students, may not fully understand the importance of regular maintenance and care for a rental property. It's important to clearly outline maintenance responsibilities in the lease agreement, including cleaning expectations, reporting any damages or issues, and consequences for neglecting maintenance tasks. This will help ensure that your property is well-maintained throughout the tenancy, minimizing potential damage and expenses.
Setting the Right Price for College Students
Price is crucial to a rental property’s success. No matter what kind of market you’re in, accurately pricing your rental to reflect its value and local market conditions is vital. Otherwise, you may deter renters on tight budgets, which is often the case for college students.
Use rent comp reports
Rent comp reports are great tools for pricing rentals. Rent comparables, or rent comps, are properties similar to yours in size, location, number of bedrooms and bathrooms, and amenities. Examining rent comp reports gives you a snapshot of what renters are willing to pay for a property like yours. Knowing this, you can price your rental according to its fair market value, making it more appealing to potential tenants.
When you list with Apartments.com, you’ll receive free rent comp reports for properties in your area. Our reports provide a snapshot of local market conditions, helping you gauge the competition and make informed decisions about setting rent prices.
Account for utilities
Utilities are another thing to account for when renting to college students. There are three ways you can go about utilities: you can either include them in the monthly rent, charge a separate monthly utility fee, or require tenants to be set up and pay for utilities on their own. Included utilities are popular in college rental markets, as they keep things simple and stress-free for students. However, they also mean you, as the landlord, are responsible for keeping up with payments and dealing with any issues that may arise.
Adjust for seasonal demand
Seasonal demand is extremely prevalent in college rental markets. As mentioned earlier, the academic calendar will typically coincide with market demand. You’ll likely see less traffic and more vacancies when students are out of school. Then, when school is back in session, demand will peak, and so will rental rates. Keep this in mind when pricing your rental. During low-demand months, you might offer discounted rates to maintain profit during slow periods. However, during high-demand periods, you can increase rental prices to capitalize on peak market conditions.
Rent to College Students with Apartments.com
Navigating the college rental market isn't easy. From dealing with inexperienced renters to accommodating seasonal market fluctuations, there are many unique challenges to consider. However, with the right tools and resources, you can successfully rent to college students while maintaining a profitable rental business.
Apartments.com is home to an expansive suite of Renter Tools perfect for your college rental. Whether you're screening applicants, creating a student-friendly lease, or dealing with the maintenance aftermath of a college house party, we're here to give you all the resources you need. With our help, you can successfully rent to and manage college students while protecting your investment.
