College towns have a consistent demand for rental homes that is unusual in other real estate markets. However, each college town is inimitable, and different types of institutions will impact 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. Such steady demand can make buying an investment property in a college town alluring. Although this is usually the instance, there are a few significant considerations before starting your property search.
Learn about the local university or college
For instance, it would be sensible to research the campus and surrounding community before selecting one location over another. Gathering 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 assess a specific area’s current and future potential.
Another imperative 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, declining the demand for off-campus options. On the other hand, public universities might have less on-campus housing than the number of students attending but may have numerous local, part-time, or commuting students who don’t need or prefer a house close to campus.
Understand the college town’s real estate market
It is also imperative 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 factors.
Crime rate, facilities, the state of the house, and the latest improvements have an influence on your ability to attract tenants and demand a competitive rental rate. It is also vital to know the tax implications of your transaction.
The current and future property tax amounts have to be included in the property’s worth, as must any required homeowners’ association fees. Moreover, it is important to acknowledge any restrictive codes or laws that might prohibit you from renting out the property; every city and town has its specific set of regulations that can differ considerably from place to place.
Create an investment and management plan
If your research is successful and you decide to make a real estate purchase in a college town, you can greatly decrease your search parameters if you determine early on how much you want to spend, how much risk you can comfortably assume, and how much time you can offer to property management.
It requires a lot of time to own a rental property, especially if you prefer to handle most of the labor alone. Rental homes in college towns stand out due to their high turnover rate. If students are your target demographic, you should know that marketing, screening, and leasing your property will need a lot of effort year after year, if not semester after semester.
Hire a professional property manager
You can hire a quality property management company to manage your property instead of trying to handle everything yourself. There are real benefits to doing this, particularly if you wish to rent to students. A team devoted to protecting your investment property’s value may take care of advertising, renter interviews, property presentation, regular upkeep, and handling tenant turnover.
At Real Property Management Vancouver, we help Battle Ground property investors like you determine if considering one or more rental properties in a specific region is an excellent investment. We can provide you with the information you need to make informed decisions because we have access to market data and experts in the field. For more information, Contact us today or call 360-975-4683.
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.
