A college town is one of the few real estate rental markets that can provide the consistent demand for rental homes. Nonetheless, each college town has specific features, and various kinds of institutions will influence an owner’s ability 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. Due to this steady demand, buying an investment property in a college town may be an appealing option. Despite the fact that this is frequently the case, there are a few essential considerations before starting your property search.
Learn about the local university or college
As an illustration, it may be beneficial to research the campus and surrounding community prior to picking 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 with evaluating any given area’s current and future potential.
Another crucial aspect 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, which could lower the demand for off-campus options. On the contrary, public universities might have less on-campus housing in relation to the number of students attending but may have a high proportion of local, part-time, or commuting students who do not require or seek to live in a 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. The condition of the house and the surrounding neighborhood are among the most vital variables.
The ability to attract tenants and charge a competitive rental rate will be influenced by the house’s age, overall safety, amenities, the house’s age, and most recent modifications. Another crucial part involves knowing the tax implications of your purchase.
The current and future property tax amount must be accounted for 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 fluctuate widely from place to place.
Create an investment and management plan
If your research is encouraging and you decide to go ahead with a real estate purchase in a college town, you can significantly narrow your search parameters if you decide early on how much you want to spend, how much risk you can comfortably assume, and how much time you have to devote to property management.
Owning a rental property is quite time-consuming, particularly if you intend to take on the majority of the tasks yourself. Rental homes in college towns are distinguished by their rapid turnover rate. If students are your target demographic, it’s crucial to recognize that the marketing, screening, and leasing of your property will necessitate a significant amount of effort from year to year, perhaps even semester to semester.
Hire a professional property manager
One viable alternative to self-management is hiring a quality property management company to manage your property. In particular, if you are intending to rent to students, this approach offers substantial advantages. Posting ads, assessing renters, demonstrating your property, executing periodic upkeep, and handling tenant turnover can all be safeguarded by a team that is dedicated to protecting your investment property’s value.
We assist Perrysburg property investors, such as yourself, in determining whether it is advisable to consider one or more rental properties in a specific area at Real Property Management Clarity Team. We have access to market statistics and industry professionals to ensure that you have the necessary information to make the most informed decision. For additional information, Contact us today or call 567-200-2320.
Originally Published on October 4, 2019
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