Renting to Students: 4 Steps to Marketing to College “Renters-in-Training”.

As we near the end of January, if you rent to college students it is time to make sure you are geared up to rent your September 2011 availability. 

What?!  Already?

Absolutely, this is a demographic that is focused on finding and locking in the best apartment for Fall Semester.  At this point, they are considering who their roommates will be, what they want in housing for next year (party place, jock dorm or library) and where the best location will be. 

Step One:  Determine who will be renewing and who will be vacating.  You need your availability as soon as possible.  Many students want to finalize their housing before finals (as early as April).  (Ideally, you can build this language into your Lease.  If it is not in your current Lease, make sure to add it at renewal.  In the meantime, offer an incentive for current residents to renew or give notice early so you can get the apartment re-rented.)

Step Two:  Let people know—Advertise.  Once you know how many apartments you will have available for the new school year, determine what your closing ratio is and therefore how much traffic you have to generate.  Ideally you will get a lot of traffic through Craigslist.  However, you should also send flyers, post on your Facebook page, e-mail blast, etc. your current residents offering a refer-a-friend special.  In addition, advertise in the student newspaper/web site.  Also, speak with the student affairs offices to let them know you have availability and ask them to refer students to you.  Find out when any housing fairs are taking place so you can participate.  Make sure a banner is on the building (where municipal codes allow) letting prospects know you are renting--and how they can find out more about you.  If you have the ability to text for information or instant message, this is a great resource for students.  Remember, this is a very tech-savvy demographic.

Step Three:  Understand your market.  Student housing can be a challenge because you are marketing to students (“Where’s the party!”) and parents (“You’ll keep my baby safe, won’t you?”)  You will have parents touring with their off-spring.  Therefore you have to market to both.  Remember the parental hot-buttons:  safety, security, well-lit common areas, consistent management and for you to protect their babies.  Now consider student hot-buttons:  Close to campus, fun, a place to meet potential dates, exercise room, bike storage and privacy.

Step Four:  Make sure your Lease and paperwork are ready:

Deposit amount:   Are you renting by the bedroom or by the entire unit?  With student housing it can be a helpful marketing tool to break it down into cost per occupant.  You may be able to push your rental rates because $400 per occupant (assuming four occupants) doesn’t sound as expensive as $1,600 for the unit.  If you have been in business for a while, review what your average damage charges have been at lease-end and charge that amount.  If you are new, look at what your comps are charging. 

Lease considerations: 

If you are new to student housing, make sure you have the ability for parents to co-sign the Lease.  Students have no rental history so they are difficult to qualify.  In addition, if the parents are on the Lease, you can contact them if issues come up.  Make sure your screening is consistent.

Clarify that each person on the Lease for any given apartment are responsible for the entire rent (‘jointly and severally’).  This is helpful when the inevitable roommate disputes arise.  Consider offering roommate referrals—pairing people to alleviate the fear of being left holding the bag for the entire rent amount.  (However, due to liability concerns make sure there is an understanding that you are making no guarantees.)

One complaint of student housing is that it is often a seasonal business.  Make sure to specify that you allow only one year Leases.  In this way they start at the beginning of the school year and end right before the next school year begins.  (This does make turnovers a challenge; however, your owner will appreciate the revenue.)  Determine if you are comfortable with your residents subletting to summer students.  If you are a high-demand property in a high demand location, you can have stricter guidelines.  If you are on the periphery (aka ‘location-challenged’) or in a new lease-up, you may want to reconsider that.

Policies and Procedures:  Students are very impressionable.  As ‘Renters-in-Training’, remind them that they are creating their credit and landlord histories from this time forward.  Many will understand that their behavior will have results in the future.  Others will not (see notes about parents co-signing above!)  Let them know up-front what your expectations are.  Make sure to cover what is and is not acceptable behavior.  For instance, there will be parties; make sure your language addresses parking and how many people are allowed to visit an apartment.

Renting to students can be fun and rewarding.  They bring great energy to your world too.  Follow these basic steps and you will be geared up to have a positive ‘higher education’ experience!

Cheers!  Jim Baumgartner | Rent Soda

Jim Baumgartner is Senior Vice President of RentSoda, a consulting company offering apartment marketing, business & operations consulting as well as industry-specific training.

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