College towns are known for their consistent demand for rental homes in the real estate market. However, each college town is unique, and different types of institutions will affect 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 attractive. Although it is a common occurrence, there are some crucial considerations before starting your property search.
Learn about the local university or college
For illustration, it is a good idea to do some research on the campus and surrounding community before deciding on one town over another. Gathering 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 assist you in figuring out any given area’s current and future potential.
Another essential aspect to take into account 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 can alleviate the need for off-campus options. Public universities, on the other hand, might have less on-campus housing when compared to the number of students attending but may have a high percentage of local, part-time, or commuting students who do not need or want to house close to campus.
Understand the college town’s real estate market
It is advisable 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 vital factors.
The ability to attract tenants and impose a competitive rental rate can be influenced by various factors such as criminal activity rates, facilities, the house’s age, and most recent changes. It is also vital to think about the tax implications of your purchase.
You need to incorporate the current and future property tax amount into the property’s cost, as must any required homeowners’ association fees. You should also be cognizant of 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 significantly from place to place.
Create an investment and management plan
Suppose your research is encouraging, and you decide to get going with a real estate purchase in a college town. In that case, you can greatly limit your search criteria by determining 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 can be quite time-consuming, mostly if you seek to take on most of the tasks on your own. Rental homes in college towns have a remarkable rate of turnover, making them quite distinct. If students are your target demographic, it’s important to recognize that there will be a significant amount of effort required in terms of marketing, screening, and leasing your property from year to year, perhaps even semester to semester.
Hire a professional property manager
The alternative to doing it yourself is hiring a quality property management company to manage your property. Doing so has genuine advantages, primarily if you are aiming to rent to students. By entrusting the responsibility of placing ads, interviewing renters, showing your property, performing routine maintenance, and handling tenant turnover to a devoted team, you can guarantee the protection of your investment property’s value.
At Real Property Management Beacon, we help Enfield property investors like you choose if considering one or more rental properties in a specific location makes sense. We have market information and professionals in the field who can give you the data you need to make the best possible decision. Contact us today or call 603-448-8808 for greater information.
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.
