As memories of an eventful 4th of July weekend begin to fade thoughts of freshman year begin to percolate in the minds of many anxious students. Finalizing financial aid, finding the right classes, enrolling in the right classes; the process of going to college full-time can be overwhelming.
Many students will have the luxury of living at home, commuting to school, and maintaining the semblance of a balanced life, but for some going to college represents leaving home and living far from the comforts of mom and dad’s pocket book.
The prospect of renting to college students for landlords and property managers is increasingly bright. And, in some cases, purchasing a home near a college may prove to be a bigger bargain for parents than paying rent.
From Zillow (Sep. 04, 14)
With the combination of high rates of affordability and rapidly rising rents, parents with kids just starting out in college may want to consider purchasing a property for the remainder of their 4-year stay rather than paying rent.
Zillow data shows that the demand for off-campus rental housing is rising, creating a large spike in rental prices that show no sign of slowing down. On the other hand, home values are still below their peak levels and mortgage rates remain low, making for great bargains for buyers who plan to own their home for at least three years. (1)
Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Whether an incoming freshman lives at an existing property or one that is purchased, there may be the additional opportunity of sub-letting. Other friends or classmates can fill the empty rooms and potentially provide additional income.”
Regardless if a property is a single family dwelling or an apartment complex a sublet makes sense for a number of reasons.
From Rent.Uloop.com (Jul. 01, 17):
Allowing subletting will make your building more attractive for students. Knowing that they have the option to find someone to pay for the room when they are not there is a definite incentive to choose one building over another, and they will be more willing to keep their lease if they know they can get other people to contribute. Yet for you as the property owner, you now take the risk of allowing a student to be an intermediate between you and the subtenants. (2)
Almeida states: “Having a sublet of a property can provide continued occupancy, reduced maintenance costs, and ensured income. But the key to a successful sublet is the same as any rental situation. Every sublet renter must go through a thorough vetting process and tenant background check, as well as sign a well-written rental agreement, one that meters out the exact demands and requirements of property management.”
Ultimately a thorough tenant check will serve as a best practice for both primary renter and sub renter. The same policy holds true for a home purchased in lieu of renting and extra rooms are rented out. As long as the communication between renter and landlord remains open, the policies and requirements understood, and all promises fulfilled, the landlord/renter relationship should be very positive.
TenantScreeningUSA.com is a third-party tenant screening company that provides tenant checks to landlords and property managers for rental communities ranging from single units to large complexes, as well as single family dwellings.
Notes:
(1) zillow.com/blog/college-towns-breakeven-2014-159125/
(2) rent.uloop.com/news/view.php/241475/Make-Subletting-a-Breeze-for-Your-Residents-Dos-and-Donts
