Student Housing Market

Anyone know anything about the student housing market right now? It seems like it would be a great investment.

Rental units near campus are o...

Rental units near campus are often sound investments. 1) student body grows = increased demand. 2) no credit history = parents co-sign 3) campus expansion = commercial or univ. buy property at high multiple 4) Roomie- rotation= because Roomie move in and out; you often get their fiends to take over and or extend the prior Leeds. I hope this helps

That's a huge help, thanks! Do...

That's a huge help, thanks! Do you have any opions of splitting the lease? I've heard that some landlords have the kids sign seperate leases so one isn't responsible if the other doesn't pay. Basically renting out the rooms seperately.

This is sort of a double edged...

This is sort of a double edged sword. Splitting the rooms into separate leases means that you potentially can get a higher rent in total because you can probably get slightly higher rents for each room than you would for renting the total. BUT you also have more moving parts. More leases, more checks to collect, more people to chase down if you don't get those checks, and most importantly you probably don't get the benefit of the guarantors covering the entire property. Menaing that under the rent the whole property scenario you would potentially have three people guaranteeing the single lease that encompasses the whole property. Under the split up scenario each guarantor is probably only guaranteeing their portion so that you could lose Tenant A but Tenants B and C would stick around and would not be responsible for covering that lost rent from Tenant A.

James makes multiple great poi...

James makes multiple great points. I would suggest making each party sign a lease , yet collect a single rent payment. You want to create a system in which the renters hold each other accountable. All friends have disputes and fights- so will the renters as they live there. So seperate payments from each renter is dangerous. Yet if one of te 2,3,4 renters does not pay - the others will hold him/her accountable. You don't want to chase a single non payer. So if 1 tenant does not pay - have the individual contract allow you to hold everyone accountable and all will be evicted and all will get poor credit history if a single party I negligent. Make sense? It's almost like a consigned is held accountable for non-payment. Investment/Student-Housing-Market/m-p/43#U43

I've seen this too. I've even ...

I've seen this too. I've even heard kids around the college campuses that look for leases like this.

Student housing of course can ...

Student housing of course can be a great investment. Many companies and individuals make a great living through student housing but that doesn't mean it is always a great investment. Make sure you find a good property in a good location and then you need to find a management company you trust. Its a great business to be in but you will need to be prepared for all the craziness that college students bring to the table. Good luck! 

Is there a specific type of in...

Is there a specific type of insurance that would be better for students, or anything else to protect yourself?

Ypu can require your renters t...

Ypu can require your renters to get renters insurance in most states. For your own protection it's very similar to your primary residence where your really just protecting against major loss. Losing a few thousand for investment repairs is part of the risk. You were 18 once, did you damage your houses? There are a lot of great kids out there

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