Check on the current rental rates in your area. Lansing is a good candidate for rentals if the property is close to the campus. Do you need to have the rent come close to covering the mortgage, insurance and taxes? That will be challenging because there are an abundance of available. Can you afford to buy now that prices are fairly low, and carry the costs for a while until the market improves and rental rates increase?

As far as actually leasing the property, you should get a credit report from any applicant along with references and employment information. If you rent to students, ask for parent contact information and try to lease to the parents if possible or at least have them co-sign and have the student(s) be the occupant. Be sure to have the first month, last month and security deposit before you allow anyone to move in. Have a real estate attorney write the lease, so that you protect your rights to inspect the property, spell out conditions of occupancy, and so forth and so forth.

Take extensive photos of the property to clearly show the condition of the property pre-rental, and again when the tenant moves out so that you can prove if there was actually any damage for which you can withhold security deposit money. Be careful that you know how to hold pre-paid rent and security deposit money legally. There are state rules and regulations. There are entire series of courses for licensing in property management. I have only touched on the surface.

You might want to consider hiring a property management real estate agent to help you with all the details. Good luck.