Renting properties to students is definitely not the same as conventional leasing. The tenants are different, including a student's minimal prior renting experience, student-friendly housing requirements, length of leases, and rent collection. Landlords must have an understanding of these disparities and how to manage them. One challenge that student housing landlords face is collecting rent from students who switch schools, drop out, or simply don't show up for move in.
CAN A LANDLORD COLLECT RENT IF A STUDENT GOES GHOST ON MOVE-IN DAY?
Student or on-campus housing lasts the academic year, usually August - May. By mid-late August, students are moving into their dorms or campus housing for the fall semester. In early January, students may also be moving in to prepare for the start of the spring session. In between those times, there is little to no movement for those who own properties near college campuses. If a student fails, changes, drops out of, or doesn't show up for school, the landlord may not have another option to refill the property or the bed. The landlord may have had the roommates or housemates sign a by-the-unit lease which leaves the other tenants responsible for all of the rent. A by-the-bed lease requires another tenant to fill the space that has been vacated or the landlord is out that amount.
See also: How Rent Collection Varies by Conventional Housing vs Student Housing
A landlord that is unable to refill their property or room may wish to seek past due rent from students who agreed to lease from them. The challenge is tracking down those students to hold them responsible. Some student tenants may have a Guarantor (typically a parent or guardian) who co-signs and can be held accountable to pay for the rent.
Other options available to landlords include:
Partnering with a reputable tenant collection agency will allow your property staff to focus on other priorities. Your team's time is valuable and better spent focusing on Resident Relations, Marketing and Leasing. Consider hiring a collection agency that specializes in student housing and understands the federal and state regulations regarding landlord tenant law and recovery of rent from no-show tenants. This specialty can help mitigate the risk of lawsuits and help to quickly recover the loss of funds.
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