Making the decision to invest in real estate property within a college town can turn out to be a viable endeavor if done properly. College towns are flooded with students in need of residence which provides you with an ideal situation as a landlord. Not many college students are looking to own the property the live in throughout college which puts you in demand for thousands of students. You have the opportunity to produce large amounts of residual income from college town properties without very little marketing efforts. Typically, these college areas are highly sought after properties which will make finding tenants and replacing non-paying tenants an easy task. Due to the high demand of these area, it may even be an option for you to make more than you expected by pricing your units based on the convenience it provides.
Invest in student areas within small cities or large towns
Investing in large cities is not recommended due to the high rental costs. To help ensure a steady flow of income from student rentals look for smaller areas where you can afford to offer reasonable rates. Many student rentals in major cities have too much competition from surrounding rental properties and don’t really fit into the budgeted lifestyle of college students. Small cities and towns with universities in the area normally have less commuters than major cities which typically means more renters.
According to MarketWatch.com the ten most profitable college towns to invest in are Boston-Cambridge, Nashville, Tennessee, Chicago, Washington, Houston, South Bend, Indiana, Atlanta, Baltimore, St. Louis, and Syracuse, N.Y.
Invest in areas that have the potential to expand
Deciding to invest in real estate near a college town that is growing or has room to expand will increase your chances of purchasing a newer property that will require less maintenance. Many of the major cities are prone to charge more for new rental properties than a smaller city or town would which may not be affordable for average students.
When searching for properties that have the potential to expand and make the most profit in your college rental estate, look for areas that will accommodate multiple tenants. The means searching for properties that have a restroom inside of every room. The more tenants you can accommodate, the more rent you’ll be able collect at the beginning of the month.
Invest in college real estate in close proximity to the actual campus
If you are fortunate enough to locate rental property within walking distance to the university, you should consider it for obvious reasons. One of your selling points would be how it’s an economical choice since they could save money on transportation to campus. Seek college rental properties close to campus because of the high demand and constant prospects.
Hopefully you understand a few of the benefits of investing in college town real estate properties. Choose a location that meets these guidelines and you may find a prime property that will prove to be a great investment.