Not all real estate rental markets can deliver the kind of consistent demand for rental homes found in a college town. Yet, each college town possesses unique features, and various types of institutions can influence an owner’s capability to lease off-campus housing competitively.
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 enticing. While this is frequently the situation, there are a couple of vital considerations before starting your property search.
Learn about the local university or college
For example, it is essential to research the campus and surrounding community before making a decision on selecting one town over another. Collecting 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 figure out any given area’s current and future potential.
Another 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, decreasing the requirement for off-campus options. On the flip side, public colleges might have less on-campus housing when compared to the number of students attending but may have a substantial proportion of local, part-time, or commuting students who are not looking or wish to live house close to campus.
Understand the college town’s real estate market
It is also critical to examine 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 variables.
Safety, places of work, the house’s age, and most current renovations will all affect your ability to attract tenants and charge a competitive rental rate. Another essential element to consider is knowing the tax implications of your purchase.
The current and future property tax amount must be included in the property’s cost, as must any required homeowners’ association fees. You must also examine 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 considerably from place to place.
Create an investment and management plan
If your study yields beneficial findings and you make the choice to proceed with a real estate purchase in a college town, you can drastically decrease the range of options you need to consider by determining how much you want to spend, how much risk you can comfortably assume, and the amount of time you can dedicate to property management.
Owning a rental property demands an enormous amount of time, primarily if you aim to handle most of the duties 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 keep in mind that a lot more effort will be needed in marketing, screening, and leasing your property on a yearly or even semesterly basis.
Hire a professional property manager
If you decide not to manage it yourself, you can opt to hire a quality property management company to manage your property. Engaging in this activity yields real benefits, primarily if the goal is to rent to students. By assigning duties such as posting ads, evaluating renters, displaying property, performing routine maintenance, and handling tenant turnover to a professional team, you can efficiently protect your investment property’s value.
At Real Property Management Magic Valley, we assist Twin Falls property investors in determining the feasibility of investing in one or more rental properties in a specific area. We can offer you with the information you need to make the best choice possible because we have access to industry experts and market statistics. To find out more, Contact us today or call 208-734-4001.
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.
