The Pros and Cons of Renting to Students in San Mateo

Good tenants have a number of similarities. They pay rent on time. They take care of your San Mateo rental property. They follow the requirements of the lease agreement, and they communicate easily and transparently with you. 

To ensure your pool of potential tenants remains deep and to keep yourself compliant with fair housing laws, you want to be inclusive as a landlord. 

How do you feel about renting to students? 

A lot of property owners have strong opinions about whether it’s a good idea or not such a good idea. Let’s take a look at the pros and cons of renting to students, and how you can make sure it’s a positive rental experience for everyone when you do have students living in your property. 

Renting to Students in San Mateo: Pros

Here’s what we like about renting to students attending the College of San Mateo and other local schools. 

• High demand for rental housing

One of the main advantages of renting to students is that there is always a high rental demand. Tenants who are in school are less likely to be in the market to buy a home and more likely to rent one. When you have a rental home that’s close to campus, you’ll find that demand for your property is especially high. This will help you reduce the risk of long vacancy periods and extended turnover times. You should not have a problem finding student tenants, and that will keep your occupancy rates high. 

• Rental income throughout the school year

Renting to students, you also know that you’ll have rental income guaranteed for the extent of the school year. The academic year is typically August until May, but there are summer school sessions as well, and the students attending local schools tend to have jobs in the area as well as scholastic pursuits. You won’t have to worry about losing them after a few months. 

• Fewer tenant expectations

This may sound like a generalization, but you may find that tenants who happen to be students don’t have extremely high standards for their housing. They want a safe, attractive place to live, but you won’t feel any pressure to make expensive upgrades or updates. Bamboo floors and stainless appliances will generally not be expected when students are looking for a new rental home. You can save money on the updates that you might have made with a different tenant demographic in mind. 

Renting to Students in San Mateo: Cons

Now that you know how renting to students can help you and your rental property, what kind of challenges will you have to be aware of? 

These are the complexities we’ve found are most common: 

• Turnover

One of the most significant disadvantages of renting to students is the high turnover rate. Most students only rent for a year or two, which means landlords need to look for new tenants every year. This can lead to periods of vacancy and less stable rental income.

• Less care with your San Mateo rental property 

College students have a bit of a reputation. Whether it’s deserved or not, you will potentially have tenants who enjoy throwing parties or getting loud. This could lead to property damage at your rental home, complaints from neighbors, and other issues. You could be renting to students who don’t have a lot of experience living on their own. They may not grasp their responsibilities as clearly as other tenants. 

• Roommate situations 

Many college students will want to move in with roommates. This makes renting a home more affordable for students, but it can also lead to a lot of conflict. What if one of the roommates is late with rent? What if one of the roommates wants to move out and the others want to move someone else in? There may be a lot of extra management required of you when you have student tenants. 

How to Manage a San Mateo Student Rental

Renting to students may be inevitable. If they are otherwise qualified for your home, you can’t not rent to them just because they’re in school. Here are a few tips for the successful management of your San Mateo rental property when students are living there. 

First, make sure you have a strong lease. The lease agreement you require your tenants to sign should be specific to the students who are renting your home, and cover some of the most important expectations and responsibilities. For example: 

• You’ll need to include language that prohibits public nuisances. Tenants will need to comply with noise ordinances and legal requirements. 
• Collect information on guarantors such as parents so you’ll be able to hold someone accountable if there is damage to the property or rent goes unpaid. 
• Make sure the lease states who is responsible for maintenance and landscaping. You should prohibit graffiti, smoking, illegal activities, and student-specific activities like parties and long-term overnight guests. 

Be willing to spend a little extra time with student tenants. Be specific when you explain how rent is to be paid. You can decide whether you want to collect rent individually from each tenant or if you want them all to pool their funds and make one payment collectively. Make sure they understand how much is owed, when it’s due, and what the consequences will be if it’s paid late. 

Finally, don’t let deferred maintenance run away at your property just because it’s occupied by students. Respond to even minor maintenance requests quickly. This will give you an opportunity to make sure everything inside the property looks good and your tenants are following the lease terms. It will also protect your investment from more expensive problems. Conduct inspections and respond to maintenance needs in a timely manner. 

These are some of the things to think about when you’re renting out a property to students. We’d love to work with you on this and help you protect your San Mateo investment home. Please contact us at Bayside Management. We lease, manage, and maintain investment properties in San Mateo and around the Peninsula, including San Carlos, Redwood City, Pacifica, San Bruno, Half Moon Bay, Daly City, Mountain View, Foster City, and Palo Alto.