College towns have a reputation for their consistent demand for rental homes in the real estate market. However, each college town has its own distinct character, and the type of institution can have an impact on the 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 alluring. Although it is typically true, there are some important considerations before starting your property search.
Learn about the local university or college
For instance, it is advisable to do some research on the campus and surrounding community prior to making a decision between various towns. Collecting 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 identify the current and future potential of a specific region.
Another essential aspect to keep in mind 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 reduce the need for off-campus options. Conversely, public universities may not offer as much on-campus housing in relation to the number of students attending. However, they often cater to numerous local, part-time, or commuting students who do not require or want to house close to campus.
Understand the college town’s real estate market
It is important to thoroughly 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 critical aspects.
The ability to attract tenants and demand a competitive rental rate can be manipulated by various issues such as criminal activity rates, amenities, the house’s condition, and most recent improvements. It is also critical to know the tax implications of your purchase.
You need to add the current and future property tax amount into the property’s cost, as must any required homeowners’ association fees. In addition, it is critical to be aware 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 differ greatly from place to place.
Create an investment and management plan
If your study is positive and you choose to go forward with a real estate purchase in a college town, you can streamline your search by defining 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, typically if you want to take on most of the responsibilities alone. Rental homes in college towns have an incredibly high rate of turnover, which sets them apart from other types of properties. If students are your target demographic, it’s crucial to acknowledge that there will be some sort of effort involved in terms of marketing, screening, and leasing your property on a yearly or even semesterly basis.
Hire a professional property manager
You may want to consider hiring a quality property management company to manage your property instead of taking on the task yourself. There are significant benefits to doing so, primarily if you are aiming to rent to students. With a dedicated team performing the placement of ads, renter interviews, property showings, maintenance, and handling tenant turnover, you can guarantee the protection of your investment property’s value.
Real Property Management Sunshine City is committed to assisting property investors in St Petersburg with making informed decisions about rental properties in different areas. We have market data and experts in the field who can give you the details you need to make informed decisions. Contact us today or call 727-625-4351 for further details.
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.
