There are a few real estate rental markets that can match the consistent demand for rental homes that exist in a college town. However, each college town has unique qualities, 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. Such steady demand can make buying an investment property in a college town inviting. Although this is typically true, there are some vital considerations before starting your property search.
Learn about the local university or college
For example, it would be beneficial to research the campus and surrounding community before making a decision among several towns. By accumulating data on enrollment history, the school’s projected growth, the current and projected ratio of students to on-campus housing, and any planned developments, you can gain valuable insights into estimating any given area’s current and future potential.
Another essential aspect to consider 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 diminishes the necessity for off-campus options. Public universities, on the other hand, might have fewer 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 want to house close to campus.
Understand the college town’s real estate market
It is equally important 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 surrounding neighborhood are absolutely crucial.
The ability to attract tenants and charge a competitive rental rate can be impacted by factors such as the level of crime, services, the house’s age, and the newest improvements. Another key factor to consider is the tax implications of your purchase.
It is important to include the current and future property tax amount in the property’s cost, as must any required homeowners’ association fees. You must 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 vary extensively from place to place.
Create an investment and management plan
If your research is encouraging and you decide to go ahead with a real estate purchase in a college town, you can greatly streamline your search by figuring out 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 laborious, particularly if you plan to handle most of the responsibilities alone. Rental homes in college towns are unique in that they have a high rate of turnover. If students are your target demographic, it’s critical to comprehend that a lot more work will be required in marketing, screening, and leasing your property from year to year, perhaps even semester to semester.
Hire a professional property manager
Think about hiring a quality property management company to manage your property rather than attempting to do it yourself. Doing so has real benefits, especially if you are planning to rent to students. By delegating tasks such as placing ads, interviewing renters, illustrating your property, executing periodic upkeep, and handling tenant turnover to a specialized team, you can guarantee the protection of your investment property’s value.
If you are a property investor in Oakland, you may depend on the experts at Real Property Management Pacific to provide guidance on the viability of purchasing rental properties in that area. To help you make a sound decision, we have compiled market statistics and consulted with industry professionals. For more data, Contact us today or call 510-900-4544.
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.
