There is a consistent demand for rental homes in a college town, unlike few real estate rental markets. However, each college town is unique, and different types of institutions will affect 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. Due to this steady demand, it may be an excellent idea to buy an investment property in a college town. While this is typically the circumstance, there are certain critical considerations before starting your property search.
Learn about the local university or college
Let’s say before choosing one town over another, it may be beneficial to research the campus and surrounding community. Acquiring 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 estimate any given area’s current and future potential.
Another vital 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 lead to a reduced need for off-campus options. Public universities, on the contrary, might have less on-campus housing in terms of the number of students attending. However, they often have an engaged population of local, part-time, or commuter students who do not need or wish to house close to campus.
Understand the college town’s real estate market
It is additionally important to consider the area’s available investment properties to ensure that any potential options have features commonly found in profitable rentals. One of the critical aspects is the condition of the house and the surrounding neighborhood.
The occurrence of crime, the condition of the house, its facilities, and the most recent changes will all affect your ability to attract tenants and set a competitive rental rate. In addition, it is necessary to understand the tax implications of your purchase.
Adding the current and future property tax amount to the property’s cost, along with any required homeowners’ association fees, is necessary. You ought to also consider 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 change extensively from place to place.
Create an investment and management plan
If your investigation is going well and you pick to proceed with a real estate purchase in a college town, you can drastically simplify your search by identifying in advance how much you want to spend, how much risk you can comfortably assume, and how long you have to offer to property management.
Owning a rental property can be quite a time devotion, especially if you prefer to handle most of it yourself. Rental homes in college towns are distinct in that they have a high rate of turnover. If students are your target demographic, you need to be aware that there will be a significant amount of work involved in marketing, screening, and leasing your property from year to year, perhaps even semester to semester.
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 real benefits, especially if you are planning to rent to students. A team committed to protecting your investment property’s value can take over responsibilities such as posting ads, questioning renters, exhibiting your property, doing regular maintenance, and handling tenant turnover.
At Real Property Management Greenway, we help Dunwoody property investors like you determine if it makes sense to consider one or more rental homes in a specific area. We are confident in our ability to provide you with market facts and advice from experts in the field that will help you make the best choice. Contact us today or call 770-771-6102 to learn more.
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