Few real estate rental markets can provide the same demand for rental homes like in a college town. But there are numerous things to grasp before investing in rental property in these areas. No two college towns are exactly alike, and different types of institutions will impact an owner’s ability to competitively lease off-campus housing. But with a constant demand and an inclination to appreciate, investing in one or more rental homes close to a college or university can be an effective way to achieve your long-term financial goals.
All across the United States, each college city has one thing in common: the students, faculty, and staff who prevail there all need housing close to campus. Such a consistent demand can make buying an investment property in a college town seem like an attractive option. While this is generally the occurrence, there are some pivotal opinions before implementing your property search.
For instance, it may be clever to research the campus and surrounding community before preferring one city over another. By accumulating findings on enrollment history, the projected growth of the school, a current and projected ratio of students to on-campus housing, and any planned developments, you can better estimate the current and future potential of any given region. If a school has shrinking enrollments or is opening a second campus in another community, both could create a sharp decrease in demand for off-campus housing. Details like these are paramount to acquire before investing in any university community.
Another thing to consider is the type of institution that is at the core of the town or city. Private universities and colleges may have strict housing policies and more on-campus housing available, thereby reducing the need for off-campus options. Public universities, on the other hand, might have less on-campus housing when compared to the number of students attending but would have a high percentage of local, part-time, or commuting students who do not expect or need to live close to campus. These are all stuff you should do your best to distinguish before deciding whether to procure a rental property in a college town.
It is similarly important to evaluate the area’s available investment properties to ensure that any potential options have features commonly found in profitable rentals. The condition of the house and the nearby neighborhood are among the most important characteristics to take notice of. Crime rates, amenities, age of the house, and most recent updates will all influence your ability to attract tenants and charge a competitive rental rate. Another crucial element is understanding the tax implications of your purchase. The amount of property tax, both current and future, must be included in the cost of owning the property, just like any required homeowners’ association fees. You have to check for any restrictive codes or laws that might prohibit you from renting out the property; each city and town has its own set of regulations that can vary commonly from place to place.
If your research looks promising and you decide to go on with a procuring real estate in your selected site, you can significantly narrow your search parameters if you decide early on how much you want to spend, how much risk you can comfortably assume, and how much time you have to devote to property management. Acquiring a leasing property is quite a time commitment, especially if you are thinking of doing most of it yourself. Rental homes in college towns are somewhat unique in that they tend to have a high rate of turnover. If students are your target demographic, it’s paramount to understand that there will be a lot more work in marketing, screening, and leasing your property from year to year, perhaps even semester to semester. Alternatively, if you aspire to rent to graduate students or faculty, you will need to comprehend how to market your rental effectively to lure them to your property.
Regardless of who your target renter is, it is vital to be honest about your ability to generate consistent and high-quality property administration and maintenance. Property management can be an extremely hands-on profession, one that demands full-time approachability should an emergency develop. If you want to supervise a property yourself, you are also limited to places that you can enter quickly or repeatedly and these are usually places near to your hometown.
Instead of doing it yourself, enlist a certified property management company to supervise your property for you. There are actual benefits to doing so, especially if you are planning to rent to students. Placing ads, interviewing renters, showing your property, performing routine maintenance, handling move-in, and move-out efficiently – all of these can be turned over to a team of professionals dedicated to protecting the value of your investment property. What is more, if you opt for a state enterprise like Real Property Management Sunstate, you are not limited to buying in your local market. Your investment options are limitless with the guide of a network of reliable property management franchise offices coast to coast.
At Real Property Management Sunstate, just we can help property investors like you plan to find out if one or more rental properties in a college town would be a good business decision. We have market data and industry experts who can give you the information you need to make the best potential outcome. Contact us today for more information.
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