Few real estate rental markets can supply the kind of persistent demand for rental homes like in a college town. But there is countless to comprehend before determining to invest in rental property in these areas. No two college towns are exactly alike, and different types of institutions will influence an owner’s ability to competitively lease off-campus housing. Though with an unfaltering demand and a likelihood that it will appreciate well, 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 over the United States, each college city has one thing in common: the students, faculty, and staff who reside there all need housing close to campus. Such favorable conditions can make buying an investment property in a college town seem like an attractive option. While this is primarily the case, there are some vital things to take note of before starting your property search.
For example, it would be a smart idea to research the campus and surrounding community before picking one community over another. Amassing statistics on enrollment history, the projected growth of the school, the current and projected ratio of students to on-campus housing, and any planned developments can help you estimate the current and future potential of any potential area. Granting that a school has shrinking enrollments or is opening a second campus in another community, both may generate a sharp decrease in demand for off-campus housing. Insights like this are fundamental to secure before investing in any university community.
One more vital factor 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 contrary, 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 do not need or require a house close to campus. These are all things you should do your best to uncover before planning whether to obtain a rental property in a college town.
It is also imperative 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 locality are among the most invaluable elements. Crime rates, amenities, age of the house, and most recent updates will all influence your chances to attract tenants and charge a competitive rental rate. One more indispensable factor 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, as shall any required homeowners’ association fees. You need to also probe 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 differ largely from place to place.
If your research is promising and you have resolved to go ahead with purchasing a real estate property in your chosen locality, you can significantly narrow your search parameters if you decide early on how much you like to spend, how much risk you can comfortably assume, and how much time you have to devote to property management. Owning and operating a rental property is a time consuming responsibility, especially if you are planning to undertake most of it yourself. Rental homes in college towns are somewhat unique in that they tend to have a high rate of turnover. Supposing students are your target demographic, it’s critical to sense that there will be a lot more activity consumed in marketing, screening, and leasing your property from year to year, perhaps even semester to semester. On the contrary, if you wish to rent to graduate students or faculty, you will need to know how to market your rental effectively to lure them to your property.
Regardless of who your target renter is, it is important to be reasonable concerning your ability to yield consistent and high-quality property oversight and maintenance. Property management can be an excessively hands-on task, one that needs full-time approachability should an emergency occur. If you want to oversee a property yourself, you are also defined to places that you can go into right away or easily. These are often within a short distance from your hometown.
An option other than doing it yourself is to commission a brilliant property management company to run your property for you. There are significant rewards to doing so, particularly 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 hire a national agency like Real Property Management Traditions, you are not limited to buying in your home market. Your investment options are vast with the assistance of a network of reliable property management franchise offices coast to coast.
At Real Property Management Traditions we can assist property investors like you decide if procuring one or more rental properties in a college town makes sense. We have market data and industry experts who can offer the information you need to make the best possible decision. Contact us today for more information.
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