If you own a property that is situated close to a college? Do you plan on moving to another home or away for an extended period of time? If so, you may take into consideration the possibility renting your home to college students. It is certainly an alternative to putting your home on the market. And although college kids comprise a large rental pool, you should definitely take into consideration the following:
First and Foremost, Will Your Tenants Take Good Care Of Your Home?
My home, like yours, is your castle. And, it is pretty personal to us. From family mementos, furniture and character, we value what is ours. That’s why having a tenant respect what is ours is so important. And while there are plenty of very responsible people, there is a perception that college students pay less time and energy toward the preservation of property than others. With this said, I encourage you to be clear on expectations in the beginning of the tenancy building trust and respect for you, your home and neighbors around your home.
Will Your Home Be Consistently Rented?
I remember my college years as one of living from hand to mouth. Even though working two jobs, I never seemed to have enough money to do anything but eat and pay rent. I am sure that this is the case with many college students today. So, finding responsible tenants is key. And, while some students may plan on hanging out over the summer, most will go home to live with their parents. This may leave a gap in your rental income. That’s why you will need to account for this possibility and have a plan to maximize your income potential. And although contract a contract, renters may decide to “walk” if it’s inconvenient for them.
What is the Ideal Rent To Charge For Your Situation?
Having a good idea of your cash flow expectations up front will definitely dictate to whom and how you market your property. If you’re trying to make financial ends meet, you’ll probably lean toward charge the most you can. In this case, college students may not be your most desired tenant. They may not be able to pay the dollar amount you’re looking for.
I always encourage my clients to do a full cash flow analysis prior to taking the plunge into renting their property. This will help guide them down to the most equitable path and type of tenant that would be best for them.
Just as there are a number of risks that come with renting to students, there are also rewards. Especially if you get a responsible tenant who stays for more than a couple seasons. So, if you are considering renting your home to college students, make sure you have a plan in place for any scenario.
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Dave Harbison has been a Real Estate Practitioner in Long Beach and surrounding communities for over 10 years. He regularly contributes to blogs, news outlets and other mhttps://www.davesellslongbeach.com/wp-content/uploads/2014/11/Harbison-HeadShot1.jpgedia, providing insight to home owners, buyers and sellers in the Long Beach, Seal Beach, Lakewood, Sunset Beach, Huntington Beach, Newport, Cypress and Cerritos.