The kind of consistent demand for rental homes that can be seen in a college town is something that is only present in a select few rental real estate markets. However, each college town is individual, and the ability of owners to lease off-campus housing competitively will be impacted by the diverse kinds of schools that are located there.
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 tempting. While this is typically the case, there are a few essential considerations before starting your property search.
Learn about the local university or college
For instance, prior to selecting one town over another, it can be beneficial to research the campus and surrounding community. Obtaining 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 assist you in measuring any given area’s current and future potential.
Another factor that should be taken 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 minimizes the requirement for off-campus options. In contrast, public universities may have a lower number of on-campus housing in comparison to the number of students attending, but they may have a higher proportion of local, part-time, or commuting students who do not need or desire to house close to campus.
Understand the college town’s real estate market
It is equally critical to analyze 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 important factors.
Crime rates, amenities, the house’s age, and most recent updates will all influence your ability to attract tenants and impose a competitive rental rate. Comprehending the tax implications of your purchase is another essential matter to take into consideration.
The current and future property tax amount must be included in the property’s cost, as must any required homeowners’ association fees. You should also look for 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 differ significantly from place to place.
Create an investment and management plan
If your research is encouraging and you choose to go ahead with a real estate purchase in a college town, you can greatly reduce your search parameters if you decide promptly how much you want to spend, how much risk you can comfortably assume, and how much time you have to invest to property management.
Owning a rental property requires a significant amount of time, mainly if you want to do the majority of the tasks on your own. There is a high rate of turnover in rental homes in college towns, which makes them stand out from other types of housing. If students are your target demographic, it is crucial to take into consideration the amount of work needed in marketing, screening, and leasing your property from one year to the next and possibly even from one semester to the next.
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 significant advantages, principally if you want to rent to students. Putting up advertisements, interviewing renters, displaying your property, executing regular maintenance, and handling tenant turnover can all be outsourced to a team concentrated on protecting your investment property’s value.
At Real Property Management Hampton Roads, we help Virginia Beach property investors like you decide if considering one or more rental properties in a specific place makes sense. We are able to give you the knowledge you require to make the most informed decision possible since we have access to market data and industry experts. Contact us today or call 757-395-4274 for additional data.
Originally Published on October 4, 2019
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