Few real estate rental markets can match the consistent demand for rental homes located in a college town. Yet, each college town is distinct, and various kinds of establishments will impact an owner’s capability to lease off-campus housing competitively.
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. This steady demand can make buying an investment property in a college town appealing. While this is generally the situation, there are several crucial considerations before starting your property search.
Learn about the local university or college
For instance, it may be prudent to research the campus and surrounding community before selecting one town over another. Obtaining 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 estimating any given area’s current and future potential.
Another essential aspect 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, minimizing the demand for off-campus options. Public colleges, on the other hand, may have fewer on-campus housing units than the number of students attending, but they may have a large percentage of local, temporary, or commuting students who do not require or prefer to house close to campus.
Understand the college town’s real estate market
It is also critical to assess 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 surrounding neighborhood are among the most important considerations.
Crime rates, facilities, the condition of the house, and the most recent upgrades will all have an impact on your ability to attract tenants and demand a competitive rental rate. Another important consideration is comprehending the tax implications of your transaction.
The current and future property tax amount must be incorporated in the property’s cost, as should any required homeowners’ association fees. In addition, you should look for any restrictive codes or laws that might prohibit you from renting out the property; each city and town has a particular set of regulations that can differ greatly from place to place.
Create an investment and management plan
If your investigation is positive and you choose to go ahead with a real estate purchase in a college town, you can greatly reduce your search parameters if you know how much you want to spend, how much risk you can comfortably assume, and how much time you must dedicate to property management.
Owning a rental property can be quite laborious, particularly if you intend to undertake the majority of it yourself. Rental homes in college towns are unique in that they have a high rate of turnover. If students are your target demographic, you must comprehend that marketing, screening, and leasing your property will need a significant amount of effort from year to year and possibly even semester to semester.
Hire a professional property manager
The other option to doing it yourself is hiring a quality property management company to manage your property. Doing so has significant advantages, particularly if you intend to rent to students. Posting ads, interviewing renters, exhibiting your property, doing regular upkeep, and handling tenant turnover can all be delegated to a team focused on protecting your investment property’s value.
At Real Property Management New York Gold, we assist Flushing property investors like you in determining whether purchasing one or more rental properties in a specific area makes sense. We offer market data and specialists in the field who can help you make an informed selection. Contact us immediately or call 347-905-5770 for additional information.
Originally Published on October 4, 2019
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