Few real estate rental markets can possess the quality of constant requests for rental places such as a college town. Although there is a lot to recognize before choosing to invest in rental property in these areas. No two college towns are exactly alike, and different types of institutions will influence an owner’s ability to competitively lease off-campus housing. However, with demand and the ability for homes to appreciate well, investing in one or more rental homes close to a college or university can be an effective way to achieve your long-term financial goals.
Throughout the United States, every college city has one thing in common: the students, faculty, and staff who settle there all need housing close to campus. Such regular demand can mean that buying an investment property in a college town seems like an attractive option. Though this is commonly the reason, there are some considerations to ponder before beginning your property search.
For example, it is crucial to research the campus and surrounding community before opting for one locale over another. Getting details on enrollment history, the projected growth of the school, current and projected ratio of students to on-campus housing, and any planned developments can help you estimate the current and future potential of any possible locality. If a school has shrinking enrollments or is opening a second campus in another community, both could produce a sharp decrease in demand for off-campus housing. Facts like this are important to have before investing in any university community.
Another pivotal 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, thereby reducing the need for off-campus options. Public universities, in contrast, might have less on-campus housing compared to the number of students attending, but may have a high percentage of local, part-time, or commuting students who do not need or intend to live close to campus. These are all the things you should do your best to learn before deciding whether to secure a rental property in a college town.
It is also urgent 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 bordering backyard are by far the most critical characteristics. Crime rates, amenities, age of the house, and most recent updates will all influence your eligibility to attract tenants and charge a competitive rental rate. Another indispensable factor is understanding the tax implications of your purchase. The amount of property tax, both current and future, must be included in the cost of owning the property, as must the required homeowners’ association fees. You should also verify if there are 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 generally from place to place.
If your research is optimistic and you opt to begin with procuring a real estate property in your specified area, you can significantly narrow your search parameters if you elect early on how much you will commit to spending, how much risk you can comfortably assume, and how much time you have to devote to property management. Managing a rental property is a time-consuming responsibility, especially if you are planning to do the majority of it yourself. Rental homes in college towns are somewhat unique in that they tend to have a high rate of turnover. Presuming the students are your target demographic, it’s invaluable to comprehend that there will be a lot more work connected in marketing, screening, and leasing your property from year to year, perhaps even semester to semester. On the contrary, if you aspire to rent to graduate students or faculty, you will want to know how to market your rental effectively as a means to draw them to your property.
Regardless of who your target renter is, it is important to be rational about your ability to yield consistent and high-quality property oversight and maintenance. Property management can be an exceedingly hands-on job, one that demands full-time handiness should an emergency arise. If you want to oversee a property yourself, you are also constrained to a location that you can arrive at briskly or repeatedly, often one that is easily accessible from your hometown.
The replacement to doing it yourself is to commission a good property management company to oversee your property for you. There are good reasons to do so, especially if you are planning to rent to students. Placing ads, interviewing renters, showing your property, performing routine maintenance, handling move-in, and move-out efficiently – all of these can be turned over to a team of professionals dedicated to protecting the value of your investment property. What is more, if you designate a national company like Real Property Management Albuquerque, you are not limited to only buying in your home market. Your investment options are endless with the help of a network of reliable property management franchise offices coast to coast.
At Real Property Management Albuquerque we can help property investors like you figure out if acquiring one or more rental properties in a college town seems sensible. We have market data and industry experts who can give the details you need to make the best attainable selection. Contact us today for more information.
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