College towns offer a unique advantage in the real estate rental markets with their consistent demand for rental homes. Nevertheless, every college town has its own unique qualities, and different types of institutions can impact an owner’s ability to lease off-campus housing competitively.
Around 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 desirable. Even though this is often the situation, there are several important considerations before starting your property search.
Learn about the local university or college
For example, it may be prudent to research the campus and surrounding community prior to choosing one city over another. Acquiring data 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 define the current and future potential of a specific area.
Another vital aspect to remember 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, diminishing the necessity for off-campus options. On the flip side, public colleges may have a lower on-campus housing as compared to the number of students attending but may have several local, part-time, or commuting students who do not prefer or need living in a house close to campus.
Understand the college town’s real estate market
In addition, you need to know 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 imperative elements.
The level of crime, facilities, the condition of the house, and the latest improvements will all affect your ability to attract tenants and set a competitive rental rate. Another important thing is recognizing the tax implications of your purchase.
The current and future property tax amount needs to be included in the property’s cost, as must any required homeowners’ association fees. Also, it is recommended to verify whether there are any restrictive codes or laws that might prohibit you from renting out the property; every city and town has its own set of regulations that can change significantly from place to place.
Create an investment and management plan
If your investigation is positive and you want to continue with a real estate purchase in a college town, you can significantly narrow your search parameters by classifying early on how much you want to spend, the level of risk you can comfortably assume, and the amount of time you have to spend on to property management.
Owning a rental property necessitates a significant amount of time, especially if you plan on handling most of the responsibilities on your own. Rental homes in college towns are characterized by their high turnover rate. If students are your target demographic, you need to keep in mind that the marketing, screening, and leasing of your property will necessitate a substantial amount of effort on a yearly basis and potentially even on a semester basis.
Hire a professional property manager
Hiring a quality property management company to manage your property is an alternative to executing the duties personally. Doing this can give you real benefits, mostly if you intend to rent to students. A team devoted to protecting your investment property’s value is accountable for placing ads, screening renters, demonstrating your property, conducting regular repairs, and handling tenant turnover.
Real Property Management Teyata is here to help Sudden Valley property investors like you make informed decisions about potential rental properties in specific areas. Our team of experts utilizes their expertise and comprehensive market data to provide you with the information you need to make well-informed decisions. For more details, Contact us today or call 360-856-1010.
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