Real estate near college campuses can be a hot commodity, especially if student lodging is at a premium. Although horror stories of wild parties and trashed properties are common, many students can make ideal tenants if you take the time to choose carefully and work with them as they navigate living on their own.

Vetting Tenants

You will need to carefully interview and research student tenants, just as you would any other tenants. Many college students have no prior credit history and they may not even have a full time job. Their rent is assembled from student financial aid and help from their parents.

If a student has no credit or reliable income of their own, require a cosigner that meets your specifications. This ensures someone has the ability to pay. You may also want to consider a higher damage deposit.

One way to find dependable student tenants is to work directly with a department head at the local college. Often, professors and student aids know of students that are both responsible and in need of housing.

For example, renting to a steady stream of third and fourth year engineering students will ensure you always have tenants in your rental that are likely highly goal focused, as opposed to an infrequent array of new freshmen that aren't sure if they would rather party or study.

Verify Ability to Pay

A job or full financial aid package doesn't necessarily mean the rent will be met six months down the line. Heavy school loads may lead to less work hours, or that big financial aid check could be gone within a few short months. This is why a cosigner is important if the student doesn't have prior rental history.

If your local and state tenant laws allow it, you can offer a rental discount for paying the full amount up front at the beginning of each semester. This way you have the rent in hand as soon as living allowances are handed out by the financial aid department.

Utility Management

Many students have never had to pay a water or electric bill. They may inadvertently run up these bills if they don't know the true costs of service. If you include utilities in the rent, you may find most of your rental income is eaten up by the local electric company.

In most cases, it's a good idea to let the student tenants handle utility costs on their own so you can avoid this scenario. In areas where freezing winters are common, you may not want to chance damage to pipes if the electricity is cut off for non-payment. Make sure you receive a duplicate copy of the bills so you can intervene if you see they are left unpaid.

Property Maintenance

Students are both busy and unfamiliar with regular house maintenance. It's up to you to make it easy. When it comes to the lawn, you have two options – hire out or do lawn maintenance yourself, or put in a low-maintenance landscape, such as a gravel lawn.

You should also visit the property at least once a month. Most tenant laws require 24 hours notice before a landlord visit, so make sure you follow your local laws. The purpose of your monthly visit should be maintenance related – so plan to change out air filters or check faucets for leaks. You can also address any other potential problems at this time.

Most students aren't bad tenants, but they are inexperienced. Working with the students helps them develop necessary living skills while also ensuring your property retains its value as a rental. For more information, contact a company like Oxford, Ohio Area Student Apartments with any questions you have.