College towns have a consistent demand for rental homes that are rare in other real estate markets. However, every college town is different, and different types of institutions will impact an owner’s capacity 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. Such steady demand can make buying an investment property in a college town attractive. While this is often the case, there are some important considerations before starting your property search.
Learn about the local university or college
For instance, before selecting one town over another, it could be a good idea to research the campus and surrounding community. Acquiring details 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 evaluate any given area’s current and future potential.
A further essential consideration 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, lessening the demand for off-campus options. In contrast, public universities may have a higher proportion of local, part-time, or commuter students who do not require or desire to live in a house close to campus while having fewer on-campus housing when compared to the number of students attending.
Understand the college town’s real estate market
It is also necessary to look at 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 significant considerations.
The house’s age, criminal activity, amenities, and most recent renovations will have an impact on your ability to attract tenants and charge a competitive rental rate. Comprehending the tax implications of your purchase is another essential component.
The current and future property tax amount should be entered in the property’s cost, as must any required homeowners’ association fees. In addition, you need to look at 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 differ drastically from place to place.
Create an investment and management plan
If your investigation is promising and you choose to move forward with a real estate purchase in a college town, you can dramatically reduce the scope of your search by determining up front how much you want to spend, how much risk you can comfortably assume, and how many hours you can dedicate to property management.
It takes a lot of time to own a rental property, particularly if you want to handle the majority of the maintenance alone. Rental homes in college towns are unique in that they have a high rate of turnover. If students are your target demographic, it’s important to realize that marketing, screening, and leasing your property will require a lot of work year-round, possibly even semester to semester.
Hire a professional property manager
The substitute to performing it yourself is hiring a quality property management company to manage your property. There are several advantages of doing this, mainly if you intend to rent to students. Advertisement, renters screening, presenting your property, conducting regular maintenance, and handling tenant turnover can all be assigned to a team devoted to protecting your investment property’s value.
We at Real Property Management Prosperity assist Newtown property investors such as yourself in determining whether it makes sense to consider one or more rental properties in a specific region. We can give you the information you need to make the best choice possible because we have access to market data and industry experts. Contact us today or call 267-364-5785 for further information.
Originally Published on October 4, 2019
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