Renting to College Students: A Landlord's Guide

Statistics show that the estimated number of undergraduate and graduate students in 2025 in the U.S. is 19.57 million. And even though college dorms may have empty beds, more and more students choose to live off-campus, primarily because they want to have more space. So, why would you, as a landlord, choose not to rent to college students?

First of all, because you can’t choose that. Under the Fair Housing Act, landlords are not allowed to discriminate based on race, age, gender, and income source (in this case, probably the students' parents, financial aid, or salary), among other factors. Therefore, if a college student wants to become a tenant on your property, you must apply the same screening process and eligibility criteria as for any other applicant.

Even though renting to college students may seem risky because of high turnover and a higher risk of property damage, don’t get too discouraged. Did you know that students have practically solved the rental vacancy issue in some regions in the U.S.? We’ll discuss more about this below!

Why Is Renting to College Students a Good Idea?

At first thought, it might not seem like a brilliant idea to rent your space to a college student. But, when you weigh the pros and cons, you’ll likely discover that it’s, in fact, quite a good real estate investment opportunity.

High Demand

We’ve mentioned earlier that college students have solved the rental vacancy issue in some regions in the U.S. What is this all about?

Well, according to the U.S. Census Bureau, the rental vacancy rate in New Haven-Milford, CT, has decreased from 11.1$ in 2010 to 3.1% in 2024. This is quite a significant improvement, and it can be linked to students’ desire to live off-campus.

According to a Yale College Council Fall 2024 Survey with 2,268 responses, most college students who might move off campus would do so primarily because they want to have more space, require a functioning kitchen, want to live with friends, and prefer single bedrooms. Moreover, college towns or areas near universities have a constant influx of new students each academic year. For you, this translates into a steady stream of prospective tenants.

In short, if you have a property that is close to a university campus, you’ll find college renters in no time. This comes with risks indeed, but we’ll discuss more about these later.

Higher Yield

Many college students share apartments/houses. This means that you can set a higher per-room rent, which also means you can earn more per property compared to renting the house to a single family.

Nonetheless, you still have to establish a rent price that is in accordance with local averages, especially since cost is a significant factor for college students.

Plus, it might be a good idea to have a co-signer for each student renter. This will provide you with peace of mind that if the students fail to pay rent, the co-signer will step in.

A Good Investment Opportunity

If you don’t own a rental property yet but want to purchase one, it might be a good idea to go for a college town. Properties near universities are usually centrally located. They are also close to bus/train stations, grocery stores, restaurants, and other desirable amenities. This can be quite a good long-term investment, as professionals may also be interested in renting your property, so you’re expanding your prospective renter profile.

Moreover, college towns usually have resilient economies centered around education, hospitality, and retail, so you’ll be investing in quite a consistent local economic ecosystem. Some universities also rent nearby properties for exchange programs or graduate housing.

Non-Traditional Student Profile

Did you know that, nowadays, 74% of college students are considered non-traditional? They are financially independent, are aged 30+, have kids, and attend school part-time only. This means that there’s a high chance that your prospective renter benefits from financial stability and has a verifiable income and a credit history or rental history. All of these can be incredibly useful during the screening process. And even if the potential student renter is a first-time tenant, their parents can co-sign the lease agreement.

Flexible Lease Terms

College students usually don’t rent properties for a long period, just 9-12 months. While this may sound like a disadvantage (high turnover), it can also be an advantage. Why? Because you can adjust the rent price much more easily based on market conditions. This means you can maintain competitive pricing without too much trouble.

High turnover can also be beneficial, especially when renting to college students. These properties tend to be more damaged than other properties, since they’re often the students’ first residence outside their homes. So, when they are away during the summer break, you can take care of unit inspections and upgrades, if needed.

Lower Tenant Expectations

College students renting a property don’t need much. Reliable Wi-Fi, clean rooms, a well-equipped kitchen, and a functioning laundry space. The fact that the rental property is located close to campus is much more important for them than luxury finishes. They don’t even spend that much time at home anyway. They spend their time on campus, working, or attending extracurricular activities.

This translates into lower renovation costs and simpler maintenance. Nonetheless, you are legally required to provide your tenants with a safe and habitable home.

Disadvantages of Renting to College Students

Like with any investment, there are some risks you need to consider (and plan for), which we’ll discuss below.

High Turnover

We’ve mentioned high turnover as an advantage earlier. But it truly depends on your particular situation. It might be a huge disadvantage for you. Renting a property to college students means that that property will likely be almost always empty during the summer.

Now, some students return to the same property every year, in which case it’s a win-win. But even so, you must discuss with the student renter regarding the rental payment for the months they’ll be home or traveling.

Other times, students prefer not to plan ahead and do not renew the lease. This means that you’ll have to re-advertise your rental property, conduct tenant screenings, and create new lease agreements every year.

Furthermore, if tenants change every year, you’ll have to handle cleaning and necessary repairs between tenancies and then coordinate move-in and move-out inspections.

Ultimately, for some real estate investors and property owners, especially those who collaborate with a property management company like Streamline, these aspects do not constitute a problem. But if you’re managing a few properties by yourself, high turnover might be a considerable drawback.

Increased Property Wear and Tear

Let’s face it, many college students are first-time renters and not every college student knows how to properly care for a house. Plus, some students lack the knowledge required for maintaining appliances, HVAC systems, or plumbing systems. Because of this, the high turnover mentioned above couples with higher maintenance and repair costs between tenancies.

Moreover, college students often turn their living spaces into social hubs. This can lead to noise complaints and property damage. It's part of college life, after all!

Difficulty in Screening and Evaluating College Renters

Some college students are first-time renters, we’ve already established that. This means that they don’t have any rent history.

While some do have part-time jobs or benefit from financial aid, which can be important during the tenant screening process, others rely on parental support, so they may not have a job history, and it can be tricky to verify their income and confirm that they can truly afford to pay rent. In this case, you can rely on co-signers or parental guarantees who will be responsible for all the financial obligations of the tenants.

Another thing to consider is the fact that you might have to conduct multiple tenant screenings for the same property (for each tenant). This is usually not mandatory, but it’s always a good idea to screen everyone who will be living on the premises to avoid any financial risks.

Necessity for a Student-Friendly Lease

If you rent your property to a college student, you’ll have to adjust the lease agreement so it reflects all the expectations plainly. You might also want to consider offering flexible lease options: 9- or 12-month lease agreements, for example. Your student tenant might also want to sublet the apartment during the summer if you agree to this (a win-win), but this also needs to be included in the rental agreement. You can also include details about a quiet hours policy or having guests overnight, for example.

All in all, outlining the perfect lease agreement can be slightly time-consuming, especially if you’re renting to a college student for the first time. You might have to work with a real-estate attorney to ensure that the lease agreement is outlined correctly according to local laws.

What Do College Students Demand from a Rental Property?

Most students prefer properties that are:

Close to the campus, as many don’t own cars and prefer places that are within walking distance;
Close to public transportation and convenience stores, cafes, gyms, and libraries;
In a safe neighborhood with good street lighting, minimal crime reports, and visible campus security patrols;
Affordable and, preferably, with an all-inclusive rent that covers basic utilities (some may forget to pay bills on time, for example, in which case it's better for both parties to have them included in the rental payments);
Furnished or semi-furnished with a table, chairs, workspaces, organization items, couches, and bedframes;
Equipped with high-speed internet;
Safe and secure;
Equipped with an in-house laundry unit and kitchen appliances.

Renting for a College Student? Here Are Some Tips!

Here are a few tips that may smoothen the screening and renting process and help you mitigate risks:

Conduct thorough tenant screenings, including for criminal background if legally allowed in your region, for all tenants.
Apply standard screening criteria to all applicants, with no discrimination, as per fair housing laws.
Clearly outline the house rules about noise levels, guests, cleanliness, and maintenance responsibilities in the lease agreement; this will help the students understand what is expected of them.
Specify all the expectations in regard to rent due dates, late fees for missed rent payments, and damage liabilities.
Define how utilities are handled, especially if multiple student tenants live on the same property.
Require parents or guardians to co-sign leases.
Offer 9- or 12-month lease options to fit academic schedules and consider renewal incentives, such as lower summer rent.
Opt for durable materials, such as vinyl flooring instead of carpet, and washable paint.
Charge a reasonable security deposit or a move-in fee to make sure you won't lose money in case of tenant damage.
Clearly document move-in and move-out conditions.
Encourage your tenants to use an online portal or app for automated payments.
Ask the tenants to get renters’ insurance; many landlords do that to protect both parties.
Schedule periodic inspections with proper notice.
Advertise your rental online on student-focused housing websites, Facebook groups, Instagram, and TikTok.
Prioritize safety and security features.
Start marketing 3-4 months before a lease ends.
Consider hiring a property management company like Streamline Property Management that provides reliable property management software, especially if you live far from the college campus or prefer hands-off management. A property manager can take care of everything related to managing your rental property(ies).

FAQs

Is it worth renting to college students?

Renting to college students can be financially rewarding because of high demand near campuses, potential for per-bedroom pricing, and a lower vacancy rate. However, it comes with trade-offs: higher wear and tear, frequent turnover, and more hands-on management.

How to rent a house for college students?

To rent a house to college students, prepare a lease tailored to their situation: include co-signers or guarantors, individual or by-bedroom leases, and clear rules about shared responsibilities. Also, furnish or partially furnish the place, ensure strong internet access, and advertise on student-friendly platforms to attract suitable tenants.

Can you refuse to rent to college students?

No, landlords cannot legally refuse to rent solely because someone is a college student. This can be illegal discrimination under fair housing laws. However, it is also important to check local laws and regulations, especially regarding unrelated people living together.

How do college students pay their rent?

College students typically pay rent via a mix of sources: family support, financial aid or scholarships, student loans, part-time jobs, or work-study programs. They also often share housing with roommates and divide rent, or have guarantors/co-signers who help cover or guarantee the payments.