Few real estate rental markets can provide the kind of consistent demand for rental homes found in a college town. However, every college town has different qualities, and various kinds of institutions will affect 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 enticing. While this is typically the instance, there are some fundamental considerations before starting your property search.
Learn about the local university or college
Before making a decision on where to settle, it is an excellent idea to research the campus and surrounding community. Getting 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 help you calculate any specific locations’ current and future potential.
An additional aspect to factor in 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, decreasing the demand for off-campus options. On the contrary, public universities might have a smaller number of on-campus housing in relation to number of students attending, but they may have a high percentage of local, part-time, or commuting students who do not require or wish to live house close to campus.
Understand the college town’s real estate market
It is crucial to thoroughly assess the area’s available investment properties to ensure that any potential options have features commonly found in profitable rentals. One of the most critical elements is the condition of the house and the surrounding neighborhood.
Your ability to attract tenants and demand a competitive rental rate are both impacted by factors such as the incidence of crime, the state of the house, and the amenities it provides. Knowing the tax implications of your purchase is another important consideration.
The current and future property tax amount must be added to the property’s cost, as must any required homeowners’ association fees. You should also investigate any restrictive codes or laws that might prohibit you from renting out the property; every city and town has its own set of regulations that can adjust widely from place to place.
Create an investment and management plan
If your investigation yields satisfactory findings and you choose to proceed with a real estate purchase in a college town, you can streamline your search, figuring out in advance how much you want to spend, how much risk you can comfortably assume, and how much time you have to invest to property management.
Owning a rental property is highly demanding, mostly if you are going to handle most of the chores alone. One notable aspect of rental homes in college towns is the high turnover rate. If students are your target demographic, it’s imperative to know that a lot more work will be involved in marketing, screening, and leasing your property from year to year, perhaps even semester to semester.
Hire a professional property manager
It would be wise to consider hiring a quality property management company to manage your property rather than attempting to handle everything yourself. There are numerous perks to doing so, mainly if you are going to rent to students. Assigning tasks such as creating ads, screening renters, exhibiting your property, doing regular upkeep, and handling tenant turnover to a dedicated team can help protect your investment property’s value.
At Real Property Management Strive, we assist Spokane property investors like you in deciding if considering one or more rental properties in a specific location makes sense. We are thrilled to provide you with all the necessary information to make an informed choice. Our team has meticulously compiled market data and sought advice from industry professionals. If you have more questions, Contact us today or call 509-396-7021.
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