Benefits of Renting to College Students
Millions of students enter universities across the country every year. College towns have a constant demand for housing that never fades. Students tend to be open to any apartments, houses, duplexes, etc. as long as they have a roof over their heads. With that being said, college students will likely have lower expectations for housing compared to traditional renters, considering they will only occupy the home for a few years.
Large Tenant Pool
With a large population of renters in a college town and a huge wave of students coming in every year, there will always be a demand for housing. If you are renting out homes in a smaller town, you may have prospects from both the local university as well as community colleges in the area.
Higher Rental Yield
If college students have the option to live off-campus during their first year, many will jump on the opportunity. While rental prices can be high, on-campus room and board can be even higher for students. It is not uncommon to see student housing generating more income than similar houses in a nearby market.
Tenant expectations are bound to be different among students than adult renters. Many students have never lived on their own before college, unless they previously lived in a dorm room. Many investors are aware that their properties do not necessarily need to be in pristine condition; a few scratches in the paint will not likely turn a student away. Rather than students being picky about appliances or other high-quality amenities, they will focus more on proximity to campus, parking, and the overall layout.
The high demand for rentals in a college town leads to fewer vacancies in off-campus homes. With students steadily joining the university every year, there will always be the next student looking for a place to live.
Owning a rental property always comes with the concern of not receiving rent checks on time. You may find, to your surprise, that students are just as reliable as any other tenant. Many college students receive financial support from their parents, ensuring that their parents’ money gets where it needs to be in a timely manner. On another hand, with multiple students living in one property, if one tenant fails to pay rent on time, the investor will still receive partial rent from the other tenants.