In a college town, there is always a consistent demand for rental homes, which is hard to find in other real estate rental markets. However, every college town is distinct, and the capacity of owners to lease off-campus housing competitively will depend on the type of school.
Across the United States, every college city has one thing in common: the students, faculty, and staff who live there all need housing close to campus. Such steady demand can make buying an investment property in a college town alluring. This is usually the case, but there are a few critical considerations before starting your property search.
Learn about the local university or college
For instance, it may be sensible to research the campus and surrounding community before picking one town over another. Acquiring data on enrollment history, the school’s projected growth, the current and projected ratio of students to on-campus housing, and any planned developments can assist you in assessing any given area’s current and future potential.
Another critical thing to think about 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, which lessen the necessity for off-campus options. Public universities, alternatively, might have less on-campus housing when compared to the number of students attending but may have a high percentage of local, part-time, or commuting students who don’t have the opportunity to house close to campus.
Understand the college town’s real estate market
It is also helpful to assess the area’s available investment properties to ensure that any potential options have features commonly found in profitable rentals. Some of the most important things are the condition of the house and the surrounding neighborhood.
The crime rates, the house’s age, the features it has, and the most recent modifications will all influence your ability to attract tenants and demand a competitive rental rate. It is also important to know the tax implications of your purchase.
The current and future property tax amount must be added to the property’s cost, as should any required homeowners’ association fees. In addition, check to see if there are restrictive codes or laws that might prohibit you from renting out the property; each city and town has its own set of regulations, which can be very different from place to place.
Create an investment and management plan
If your analysis is positive and you choose to push with a real estate purchase in a college town, you can significantly narrow your search parameters if you recognize beforehand how much you want to spend, how much risk you can comfortably assume, and how much time you have to allocate to property management.
Owning a rental property takes a lot of time, specifically if you want to carry out most of the work yourself. Rental homes in college towns are different because they have a high turnover rate. If students are your target demographic, you need to know that marketing, screening, and leasing your property will take a lot more effort from year to year or even semester to semester.
Hire a professional property manager
Instead of yourself, you could hire a quality property management company to manage your property. This is a good idea, especially if you are arranging to rent to students. Putting ads, evaluating renters, showing your property, accomplishing regular maintenance, and handling tenant turnover can all be redirected to a team committed to protecting your investment property’s value.
At Real Property Management Vision, we help Burbank property investors like you decide if considering one or more rental properties in a particular area makes sense. We have market data and industry experts who can provide the information you need to make the best possible decision. Contact us today or call 818-233-8789 for more details.
Originally Published on October 4, 2019
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
