Few real estate rental markets can offer the kind of consistent demand for rental homes found in a college town. Yet, every college town is distinct, and different sorts of institutions will influence 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 interesting. While this is typically the situation, there are some vital considerations before starting your property search.
Learn about the local university or college
Before settling in a certain place, it is a good idea to research the campus and surrounding community. Compiling 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 anticipate any given area’s current and future potential.
An additional factor to think about 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, lowering the demand for off-campus options. On the contrary, public universities might have a smaller number of on-campus housing than the total number of students attending, but they may have a high percentage of local, part-time, or commuting students who do not necessitate or wish to live house close to campus.
Understand the college town’s real estate market
It is equally vital to evaluate the area’s available investment properties to ensure that any potential options have features commonly found in profitable rentals. One of the most significant factors is the condition of the house and the surrounding neighborhood.
Your ability to attract tenants and charge a competitive rental rate are both influenced by factors such as crime rates, the house’s age, and the facilities it offers. Being aware of the tax implications of your purchase is another crucial consideration.
The current and future property tax amount must be incorporated in the property’s cost, as must any required homeowners’ association fees. You should also 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 vary widely from place to place.
Create an investment and management plan
If your study is positive and you opt to carry on with a real estate purchase in a college town, you may narrow your search by deciding early on how much you want to spend, how much risk you can comfortably assume, and how much time you have to spend on to property management.
Owning a rental property is a huge time investment, mainly if you plan to perform most of it yourself. One distinctive feature of rental homes in college towns is the high turnover rate. Marketing, screening, and leasing your property will require a lot more effort from year to year or even semester to semester if students are your target demographic.
Hire a professional property manager
Instead of trying to handle everything on your own, you might hire a quality property management company to manage your property. There are some serious advantages to doing so, particularly if you intend to rent to students. Creating ads, screening renters, exhibiting your property, doing regular upkeep, and handling tenant turnover can all be assigned to a team dedicated to protecting your investment property’s value.
If you are a property investor in St George, you may rely on the experts at Real Property Management Southern Utah to advise you on the viability of purchasing rental properties in that area. To help you make an informed choice, we have compiled market statistics and consulted with industry professionals. For additional information, Contact us today or call 435-673-4242.
Originally Published on October 4, 2019
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