Having a rental property that is near schools and universities could be a lucrative investment because even though student tenants end their lease after their graduate, it wouldn’t be challenging to find new ones. After all, new students enroll every year.

However, it still comes with some challenges. Student renters are young and may have little to no experience when it comes to maintaining a property and honoring contracts. They may also struggle with keeping up with the responsibilities that go along with living independently.

As young adults, the best way a landlord can mold them into better renters is by treating them the same way he treats experienced renters, and not as children. Treating them like adults will mold them into becoming more mature and responsible tenants.

Let me give you a few helpful tips if you want to rent out units to students.

Market your units even to non-students.

With the Fair Housing Act in place, it is illegal to show any form of discrimination towards renters even in your advertisements. When you publish a listing for your property on platforms like Padleads, make sure to avoid terms like “exclusive for students” or “ideal for students” because that may seem discriminatory against families or young professionals who want to rent near universities.

Offer flexible terms

It is not practical to offer a year-long lease to students, especially since there is no guarantee that they would be able to sustain the financial demands of schooling and independent living. Provide options like a three- or six-month leasing terms.

Just make sure these term options are also available to non-student tenants.

Allow co-signers

Student tenants often do not have income documents or credit reports, so it would be difficult to verify whether or not they can handle the responsibility of paying the monthly rent. You also can’t ask their previous landlord since they don’t have any rental history reports.

One way to get around this hurdle is by allowing your student tenants to have a co-signer who will have an obligation to pay the rent in case the tenant could not afford to do so.

Another option is to allow your tenant to sublease the unit so that they can share the rental expenses with a roommate.

However, there are also disadvantages to having guarantors and cosigners. The same is true with subleasing. Make sure you research on how to properly execute such terms on your lease agreement.

Submit Rental Reports to Credit Bureaus

If you submit rental reports to credit bureaus, this will help your student tenants build credit, which can prove their credibility in the future if they want to rent or purchase a new home in the or apply for loans. They may also earn a Certificate of Satisfactory Tenancy, which they can show to their future landlords to establish their credibility.

This is another way to encourage them and their co-signers to pay rent on time if they want to build a good credit score.

Provide sufficient guidance

Student renters are new to the independent life so they are expected to have difficulties adjusting. They are also unfamiliar with the responsibilities of being a tenant. This is why, as their first landlord, you also have a social responsibility to guide them on how to become good tenants. However, make sure that you also respect their limitations and not end up micromanaging their lives. Simply impart insights on being a responsible tenant if the situation calls for it.