College towns experience a consistent demand for rental homes, which sets them apart from other real estate markets. However, every college town has specific features, and the type of institution can greatly 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. This steady demand can make buying an investment property in a college town enticing. Although it is frequently true, there are several important considerations before starting your property search.
Learn about the local university or college
For instance, before choosing one town over another, it would be wise to research the campus and surrounding community. Gathering information 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 look into any given area’s current and future potential.
A further important factor to look at 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, eliminating the requirement for off-campus options. On the other side, public universities often have numerous local, part-time, or commuter students living in a house close to campus while having less on-campus housing in comparison to the number of students attending.
Understand the college town’s real estate market
It is also necessary 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 one of the most important considerations.
The house’s condition, criminal rates, amenities, and most recent makeovers will have an effect on your ability to attract tenants and charge a competitive rental rate. Realizing the tax implications of your purchase is another important factor.
The current and future property tax amount should be included in the property’s cost, as must any required homeowners’ association fees. In addition, it is critical to be mindful of any restrictive codes or laws that might prohibit you from renting out the property; every city and town has its own set of regulations that can fluctuate drastically from place to place.
Create an investment and management plan
If your research is promising and you opt to move forward with a real estate purchase in a college town, you can greatly reduce the scope of your search by identifying in advance how much you want to spend, how much risk you can comfortably assume, and how many hours you can offer to property management.
It requires a significant amount of time to own a rental property, especially if you want to handle the majority of the responsibilities alone. Rental homes in college towns are special in that they have a high rate of turnover. If students are your target demographic, it’s critical to keep in mind that marketing, screening, and leasing your property will demand significant effort throughout the year, potentially even on a semester-to-semester basis.
Hire a professional property manager
Think about hiring a quality property management company to manage your property instead of attempting it on your own. There are numerous perks of doing this, mainly if you plan to rent to students. Advertisement, renter selection, showcasing your property, executing regular maintenance, and handling tenant turnover can all be efficiently managed by a dedicated team to protect your investment property’s value.
Real Property Management SW Coast assists Fort Myers property investors such as yourself in identifying whether it makes sense to look at one or more rental properties in a certain area. We are equipped with the market data and industry experts to provide you with the information necessary for making the best decision. Contact us today or call 239-790-2840 for clarification.
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.
