The consistent demand for rental homes in college towns sets it apart from any other real estate rental market. Yet, every college town is different, and the capacity of owners to lease off-campus housing competitively is impacted by different kinds 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 alluring. Despite the usual circumstances, there are a few important considerations before starting your property search.
Learn about the local university or college
When selecting between several towns, it would be advisable to research the campus and surrounding community. Gathering info 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 ascertain any given area’s current and future potential.
Another significant 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, lowering the demand for off-campus options. On the other hand, community colleges might have less on-campus housing than the number of students attending but may have a higher percentage of local, part-time, or commuting students who have no need or prefer to house close to campus.
Understand the college town’s real estate market
It is equally critical to look over 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 important factors to think about.
The safety, facilities, condition of the house, and most recent modifications will play a role in your ability to attract tenants and establish a competitive rental rate. It is crucial to have a good grasp of the tax implications associated with your purchase.
The current and future property tax amount must be included in the property’s cost, along with any required homeowners’ association fees. It is also crucial to be mindful 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 fluctuate widely from place to place.
Create an investment and management plan
If your examination yields good news and you choose to start with a real estate purchase in a college town, you can drastically reduce your scope of options by identifying beforehand 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 tedious, especially if you plan on handling most of the tasks yourself. Rental homes in college towns are unique in that they have a high rate of turnover. If students are your target demographic, you have to note that there will be quite a bit of work associated with marketing, screening, and leasing your property on a yearly or even semesterly basis.
Hire a professional property manager
Consider hiring a quality property management company as a positive alternative to managing your property on your own. Doing this can provide several advantages, mostly if you’re planning to rent to students. Publishing ads, interviewing renters, showcasing your property, performing perioding upkeep, and handling tenant turnover can all be allocated to a team committed to protecting your investment property’s value.
At Real Property Management Instant Equity, we are dedicated to helping Buda property investors like you make informed decisions about purchasing rental properties in any area. Our market data and experts in the field are here to provide you with all the information you need to make a knowledgeable decision. For additional data, Contact us today or call 512-500-0422.
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.
