If you own a rental property in Denver, you have likely considered renting to college students. A large number of students looking for a rental makes the prospect of renting to them quite attractive; however, our experience as a property management company for owners of rental properties tells us that college rentals are not necessarily for every owner.
The only way to know if renting your property to students is right for you is to seriously consider the pros and cons of making your home, apartment or another residential unit available to local students. Based on our long history of managing rentals for landlords like you, there are a number of key things to consider before you look for a college renter.
Pros of Renting to College Students
Reliable Rental Prospects
In some cities and towns, rental property owners struggle to find renters for their properties. It is almost certain that you will not have that problem when you enter the college rental market. Most students are not property owners themselves and do not plan on purchasing a home or other residence in the town or city where they attend college. This means most of them will be looking to rent at some point during their college career. Townhomes and apartments for college students spring up near college and university campuses for that very reason, and individual property owners like you can also benefit from that market by making your property available to students.
If you have owned a rental property for any length of time, you know that renters can sometimes fall behind on their rent due to a job loss or other circumstance. In most cases, the parents of the college renter pay the rent for their child. Parents of college students tend to be reliable sources of rental income because many of them have been in their careers for a long time. Many parents will even pay the rent for the entire lease term up front just as they would do if their child were living in the college dorms. Here at Keyrenter Denver, we have worked with many parents who want to rent a house or apartment from our clients for their son or daughter, so we know how advantageous having a student with a rent-paying parent can be.
Unlike other renters, college students are not usually very particular about where they live. As long as the rental unit is clean and in a safe neighborhood, a college renter will not normally care very much if the appliances have not been updated in some time or if the carpet has not been replaced recently. In other words, you may very well not need to invest much money in upgrading your property or addressing minor aesthetic concerns if you are pursuing college rentals. On the other hand, renting to other groups of renters who are concerned about such things can lead to increased maintenance costs for you.
Potential for Greater Income
Providing college rentals can take a lot of the guesswork out of how much rent to charge and even lead to greater rental income. You can tie your rent to the room and board fees at the local college or university and students will generally not complain because that is what they are expected to pay if they stay in the dorms. When those rental fees increase, so can yours, if you so choose. It is also possible to attract more rental prospects by offering a discount relative to room and board at the college or university. You can still earn a good rental income while attracting many good rental prospects.
Cons of Renting to College Students
Most college students have never lived on their own before and are used to their parents doing a lot for them. That can lead to neglect of the property and their not keeping landlords informed about damage or maintenance needs. In addition, the short-term nature of many college leases means that students have less incentive to make sure their rental unit stays as nice as possible. All of this contributes to increased upkeep when landlords offer homes and apartments for college students. Yet, this reality should not necessarily deter you from renting to college students. As a property management company with much experience in this area, we can eliminate the hassle associated with maintaining your property by taking care of these issues for you.
Problems with Neighbors
Living on their own for the first time, college students may also get rowdy and disturb their neighbors, creating headaches for landlords who have signed a lease with a college renter. At Keyrenter Denver, we have found that one of the best ways to address this problem is to make sure the lease includes clauses related to noise and disturbing the peace. We have drawn up many of these leases for our landlord clients, and we can do the same for you.
Difficulty of Screening Renters
We always recommend that landlords do a credit screening whether they are offering homes or apartments for college students or for any other group of potential renters. It can be difficult to screen potential college renters, however, because most of them will not have much of a credit history to look at. One of the benefits of hiring us as the property management company for your college rental is that we have lots of experience with screening the credit histories of students and their parents in order to deliver the best rental prospects to you.
We Can Assist You
Making the final decision about renting to college students may take a little time, but putting thought into it will make you a happier landlord in the long run. At Keyrenter Denver, we can help provide the peace of mind by managing your property for you whether you choose a college renter or someone else to rent your residential unit. Contact us today and we can get started on finding the right renter for your property.