Few real estate rental markets can give the type of reliable demand for rental homes like in a college town. Though there is a lot to perceive before opting to invest in rental property in these areas. No two college towns are exactly alike, and different types of institutions will alter an owner’s ability to competitively lease off-campus housing. Yet with constant demand and the ability to 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.
Throughout the United States, each college city has one thing in common: the students, faculty, and staff who exist there all need housing close to campus. Such a sensible request can make buying an investment property in a college town seem like an attractive option. While this is regularly the case, there are certain critical things to think about before starting your property search.
For instance, it may be wise to research the campus and surrounding community before deciding on one metropolis over another. Discovering feedback on enrollment history, the projected growth of the school, 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 assuming territory. Presuming a school has shrinking enrollments or is opening a second campus in another community, both would bring a sharp decrease in demand for off-campus housing. Evidence like this is crucial to possess before investing in any university community.
Something else 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, meanwhile, may 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 care to rent a house close to campus. These are all circumstances you need to identify first before concluding whether to acquire a rental property in a college town.
It is also pivotal 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 adjoining vicinity are among the most pivotal attributes. Crime rates, amenities, age of the house, and most recent updates will all impact your ability to attract tenants and charge a competitive rental rate. Another critical component 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 must any required homeowners’ association fees. You would also need 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 change completely from place to place.
If your initial research is optimistic and you decide to push on with a real estate purchase in your selected address, you can significantly narrow your search parameters if you decide early on how much you intend to spend, how much risk you can comfortably assume, and how much time you have to devote to property management. Having a rental property is a time consuming commitment, particularly if you are thinking of carrying it out by 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 pivotal to know that there will be a more undertakings related to marketing, screening, and leasing your property from year to year, perhaps even semester to semester. By contrast, if you foresee to rent to graduate students or faculty, you will need to comprehend how to market your rental effectively to attract them to your property.
Regardless of who your target renter is, it is paramount to be pragmatic regarding your potential to produce consistent and high-quality property oversight and maintenance. Property management can be a particularly hands-on job, one that requires full-time readiness should an emergency happen. If you want to run a property yourself, you are also limited to the districts that you can enter in immediately or easily, often these are places near to your hometown.
The alternative to doing it yourself is to recruit an amazing property management company to govern your property for you. There are genuine 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 elect a national company like Real Property Management Preferred, you are not limited to buying in your home market. Your investment options are numerous with the comfort of a network of reliable property management franchise offices coast to coast.
At Real Property Management Preferred we can support property investors like you to decide if buying one or more rental properties in a college town seems right. We possess market data and industry experts who can supply the information you need to make the best viable conclusion. Contact us today for more information.
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