A college town is an incredibly lucrative real estate rental market, with a consistent demand for rental homes. However, every college town has its own unique features, and different types of institutions can impact an owner’s ability to lease off-campus housing competitively.
Throughout 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. Given the steady demand, buying an investment property in a college town could be a highly attractive choice. While this is frequently the case, there are a few critical considerations before starting your property search.
Learn about the local university or college
For instance, it may be helpful to research the campus and surrounding community prior to selecting one town over another. 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 evaluate the current and future potential of any given area.
One important factor to consider 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 could reduce the requirement for off-campus options. On the other side, public universities might have less on-campus housing than the number of students attending, but they may have a large number of local, part-time, or commuting students who do not need or seek to live in a house close to campus.
Understand the college town’s real estate market
It is equally important to assess 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 absolutely crucial factors.
The ability to attract tenants and charge a competitive rental rate will be impacted by the house’s condition, overall safety, amenities, the house’s age, and most recent renovations. Understanding the tax implications of your purchase is absolutely essential.
The current and future property tax amount must be incorporated in the property’s cost, as must any required homeowners’ association fees. It is critical to be knowledgeable 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 greatly from place to place.
Create an investment and management plan
If your research is filled with positive findings and you make the decision to proceed with a real estate purchase in a college town, you can greatly streamline your search by determining early on how much you want to spend, how much risk you can comfortably assume, and how much time you have to spend on to property management.
Owning a rental property can be quite challenging, mostly if you plan on handling most of the responsibilities on your own. Rental homes in college towns are known for their high turnover rate. If students are your target demographic, it’s essential to understand that the marketing, screening, and leasing of your property will demand a significant amount of work from year to year, perhaps even semester to semester.
Hire a professional property manager
Think about hiring a quality property management company to manage your property. It can be a great alternative to self-management. In particular, if you are planning to rent to students, this approach offers significant benefits. Posting ads, evaluating renters, displaying your property, performing periodic upkeep, and handling tenant turnover can all be managed by a team that is devoted to protecting your investment property’s value.
We assist Hillsborough County property investors, such as yourself, in establishing whether it is a good idea to consider one or more rental properties in a specific area at Real Property Management Freedom. We are thrilled to offer you access to market statistics and industry professionals who will provide you with the necessary information to make the most informed decision. If you have more questions, Contact us today or call 813-867-2667.
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.
