The consistent demand for rental homes in college towns is unlike any other real estate rental market. Yet, every college town is different, and the ability of owners to lease off-campus housing competitively is affected by the types of institutions.
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 desirable. Even though this is usually the case, there are a few vital considerations before starting your property search.
Learn about the local university or college
When deciding between several towns, it would be a good idea to research the campus and surrounding community. Collecting 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 determine any given area’s current and future potential.
Another key 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, diminishing the need for off-campus options. Public universities, on the other hand, might have less on-campus housing than the number of students attending but may have a larger proportion of local, part-time, or commuting students who have no need or want to house close to campus.
Understand the college town’s real estate market
It is equally crucial to assess 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 considerations.
Security, facilities, the house’s condition, and most recent changes will all impact your ability to attract tenants and impose a competitive rental rate. Another important consideration is understanding 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. 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 investigation is encouraging and you decide to push with a real estate purchase in a college town, you can greatly narrow down your scope of choices if you identify beforehand how much you want to spend, how much risk you can comfortably assume, and how much time you have to commit to property management.
Owning a rental property requires a great deal of time, particularly if you intend to manage the majority of the task yourself. Rental homes in college towns are unique in that they have a high rate of turnover. If students are your target demographic, it’s essential to understand 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
Hiring a quality property management company is an alternative to managing your property on your own. Doing so will bring about tangible benefits, particularly if you intend to rent to students. Posting ads, questioning renters, demonstrating your property, carrying out routine upkeep, and handling tenant turnover can all be delegated to a team committed to protecting your investment property’s value.
Here at Real Property Management Northern Utah, we assist Layton property investors like you in determining the viability of purchasing rental properties in a given area. You can get all the information you need to make an informed selection from our market data and industry specialists. To get more information, Contact us today or call 801-546-1770.
Originally Published on October 4, 2019
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.
