Would it be a good or bad idea to rent a house to college students?

From personal experience RENTING is always a risky, albeit potentially profitable undertaking. You just need to be undeniably clear, strong, upfront and protect yourself. Check references, take security deposits as much as your city/state will allow, don't allow pets, screen for smokers, have house RULES since they are college students and make those as STRICT as allowable by your local 'laws' as well. Interview everyone who will live there and most importantly CHECK ON YOUR property regularly. Have a very secure rental agreement, require them to carry renters insurance... LOTS of things you can do to protect yourself and be VERY particular WHO YOU rent it to. If you are it could be a very positive experience.

Damage, total destruction, overcrowding, police complaints, neighbors complaints. High insurance, law suits for underage drinking. Forfeiture of the house if drugs are sold from the premises. You name it they will do it. Calls at 2 am for overflowing toilets, fires.

Just make sure you get a deposit from them, enough to cover potential damage. You might need to look into the insurance aspect as renting to students might mean a slightly more expensive policy that covers a few extras. Oh and add a clause to rental contract that states you have to be invited to any parties they have ;)

Depends. Ultimately as long as you make the contract exactly what you expect you shouldn't have a problem and if you do, you can always evict. Just be straightforward with what you expect.