Have you considered renting to IUPUI college students?
Not everyone has an investment property located near the Indiana University–Purdue University Indianapolis campus, and there are perks in renting to undergraduates, from a steady supply of tenants to a potentially higher profit.
Here are five tips for renting to IUPUI students in 2022.
Require Co-Signers for Students
College students aren’t likely to have a rental history, making it difficult to gauge their reliability in paying rent and trustworthiness with someone else’s property. Mitigate risks by requiring a guardian to co-sign. In the event the student can’t afford rent, you have a responsible co-signer to contact.
Charge Rent by Student
Renting the property by student will net a higher profit than renting to a single individual or family. You might rent your property near IUPUI to a family for $1500 a month; in contrast, you can rent to five IUPUI students at $500 per person for $2000 per month. That’s an additional $6,000 annually, assuming a 12-month contract. Not sure how much to charge per student? Compare rental rates to IUPUI rental rates to ensure you’re offering a competitive or comparable rate while making a profit.
Communicate the Lease Agreement
It’s important to set clear expectations about what is and isn’t allowed with students, since many are first-time renters or have limited rental experience. Expect questions about visitation, pets, renters insurance, late fees, and maintenance. Make yourself available to answer these questions and provide a walkthrough, or have a property manager provide the tour.
Require a 12-Month Contract
College students may not need housing the entire year, but a shorter lease cuts into your profit. For landlords who rent to students, it’s common to require a 12-month contract. If pressed for a shorter contract covering the spring and fall semesters alone, consider charging more to make up for the months when the student is away. This ensures you aren’t inconvenienced if your property is empty when a tenant is away.
Charge Up-Front as Appropriate
There’s a risk that something may break or stain when renting to college students. It’s not unwise to request the first and last month’s rent from tenants. Having additional money upfront should put you at ease in the event there is an issue that requires repairs or deep cleaning.
Interested in Renting to IUPUI College Students in 2022?
IUPUI holds an annual housing fair to assist students in finding off-campus solutions. If you have a rental house for students, reach out to the university to learn how you can promote your property to college students.
If you need assistance with ongoing maintenance, routine inspections, or locating college student tenants, we invite you to contact WILMOTH Group and put our years of expertise to use. We will manage your IUPUI off-campus housing solution(s), whether you own a single-family home, duplex, or other type of investment property in Indianapolis. Call (866) 945-6684 for more information.