When does your typical student rental leases start and end? 9 month or 12 month leases? July through June? June through May? August through July?

Recently picked up a townhome and trying to make sure I'm market on terms. Tia

I've had clients do a 12 month lease (pro-rated for two weeks of turn), but I've also seen 9-10 month leases to give plenty of time for a full turn. Tenants can really do a number on properties (students or otherwise), so a two week turn can get pretty tight if you're self managing and the tenants are bonkers. Kind of dealer's choice depending on your situation. Generally late June to the first week of August (at the latest) is turn season. A lot of kids won't want to move back the first of August, so aim for the second week

90% of student rentals in town have an August 1st start date. I end my leases around July 23rd. I've never had a problem with a week for make readys but I also do them myself, if needed. Being new, you might want a little more time.

Thanks for insight. More than likely I'll do August 1st to June 30. There's not much juice in the rental market in BCS for these townhomes so we'll see.

Let me give you the secret sauce to renting to students. I figured this out about 10 years ago and this has made my life soooooooooooo much easier. I tell you this at my peril as this only brings me more competition, but we are all friends here anyway............right.

PRE-LEASE: Begin advertising in Feb for move in July. I have my leases end either 1 July or 15 July each year.
By Pre-Leasing you weed out undesirable tenants that are looking to move in immediately or in the next week.
In Feb, I contact all my tenants to see if they want to renew. If so, we sign renewal paperwork right away. If not I begin showing the property for July move in. If you haven't been doing this, your current tenants might be a bit surprised that you are asking so early but once you get the new batch in they are used to it as that is when they sign their lease to move in.

What does this do for you: YOU GET BETTER TENANTS. The responsible students begin looking in FEB, no later than Spring Break. They want their place locked in BEFORE they leave for the summer. Also, it gives you more time to either experiment with increasing rents and able not be pressured to take less qualified tenants, as you have months to get it leased. If you wait till June or July to advertise, you are in panic mode and more willing to cut your rent to get your place lease.

I have 10 rental units that I work with in Bryan and have only been leasing for 23 years...........Yes it will make your life easier!!!!!!

Good Luck and Gig'em.

That's great advice. I've been perusing Reddit and that's the same they are saying, high quality tenants. In this case, I'm leasing to my kid and his 2 buddies. I've known them since their freshman year. So I'm a 1 rental guy, trying to reduce cash outflow to someone else's mortgage: hardly competition.

Are you using Stessa or Baseline for rental management software or a prop manager? I'm not planning on using a prop mgr since they cut into the razor thin margins.

Comeby! said:

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That's great advice. I've been perusing Reddit and that's the same they are saying, high quality tenants. In this case, I'm leasing to my kid and his 2 buddies. I've known them since their freshman year. So I'm a 1 rental guy, trying to reduce cash outflow to someone else's mortgage: hardly competition.

Are you using Stessa or Baseline for rental management software or a prop manager? I'm not planning on using a prop mgr since they cut into the razor thin margins.

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Hey Comeby,

I started out my investment property journey exactly like you have started yours. My son was a freshman at A&M in 2002. We put him the dorm first year to get a better feel for college. Mid-way his freshman year I bought my first duplex. Beginning his sophomore year I put him on one side (3 beds 2baths) where he brought two roommates paying $325 each and the other side had 3 girls paying $900 total. 4 years later my daughter joined my son in the duplex on the other side, son stayed for a graduate degree. So I had son on one side, daughter on the other side with their roommates paying a whopping $325 each X 4 roommates = $1300 monthly, kids living for free. My nut (mortgage, taxes, Insurance) was $1000 per month. My kids living for free and I am making $300 per month. An investor was born!!!!!!

I still own that duplex today (22 years later!! Rents now are $2550 per month. I now own 10 units in Bryan and another 6 units in the Austin area. Life is good.

I am my own property manager! I am 69 years old, no fancy software, just excel works fine and a wife who does all the bookkeeping. I handle all the listings, showings, repairs and tenant interaction.

BTW, this is a great way to pass on some responsibility to your kids, helping you manage the tenant inflow while they are going to college. Keep them in the loop as to what and why you are doing what you do and it just might inspire them later in life. Both my kids own in addition to their own home.....investment duplexes. Son owns two, my daughter owns 1.