The kind of consistent demand for rental homes seen in college towns is rare in real estate rental markets. However, every college town has particular features, and the capacity of an owner to lease off-campus housing competitively would rely on the kind of institution.
Around 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 inviting. While this is often true, there are a few significant considerations before starting your property search.
Learn about the local university or college
For example, it may be a great idea to research the campus and surrounding community prior to making a decision on one town over another. Acquiring information 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 assess any specific locations’ current and future potential.
Another crucial factor to remember 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 necessity for off-campus options. However, relative to the number of students attending, public universities may have fewer on-campus housing options but a larger number of local, part-time, or commuter students who don’t require or want to house close to campus.
Understand the college town’s real estate market
Additionally, it is important to determine 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 one of the most significant variables.
Your ability to attract tenants and demand a competitive rental rate will be determined by factors such as safety, amenities, the condition of the home, and the current improvements. Another important element to think about is comprehending the tax implications of your purchase.
The current and future property tax amount must be reflected in the property’s cost, as must any required homeowners’ association fees. Also, you should inspect for 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 fluctuate greatly from place to place.
Create an investment and management plan
If your research provides valuable results and you choose to proceed with a real estate purchase in a college town, you can significantly minimize your search factors by figuring out early on 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 necessitates a substantial dedication of time, mostly if you intend to take on the majority of duties independently. Rental homes in college towns are notable for their elevated turnover rate. Understanding that marketing, screening, and leasing your property will demand a lot more work year-round, maybe even semester to semester, is vital if students are your target demographic.
Hire a professional property manager
As an alternative, you have the option to hire a quality property management company to manage your property. There are notable benefits associated with doing this, particularly if you want to rent to students. You can outsource a team dedicated to protecting your investment property’s value to manage tasks like posting ads, screening renters, showcasing your property, undertaking regular maintenance, and handling tenant turnover.
Real Property Management Capital Region assists Albany property investors like yourself in assessing the possibility of considering one or several rental properties in a particular neighborhood. With our access to business professionals and market statistics, we can provide you with the necessary knowledge to make an optimal decision. Contact us today or call 518-290-1448 to get more details.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
