Investors are making it big by Investing in well located Residential Rental Properties (condos, townhouses, single-family and small apartments) near State Colleges & Universities. Some Investors are helping to pay a big part of their Son or Daughters College costs through these Investments. Nationally large apartment building firms have student rental apartments in operation or under construction near most major colleges.2008 College applications surge. Nationally, more students than ever before -3.3 million- will graduate from high school this year, said David Hawkins of the National Association for College Admission Counseling. Two-thirds of the graduates are expected to seek some form of higher education. The trend is expected to plateau next year, then decline slightly. State Colleges/Universities have not kept up. How can you join this opportunity? Follow our "9 Tips for College/University Rental Investments."
State Colleges/Universities not private schools. Private schools are usually smaller with more available on campus housing. Alumni endowments help fund campus building projects. We want the choice of a large school student population found more at State Colleges & Universities.
Small City/Big Town. Not large metropolitan city population, stay with low commuter schools. Large cities have fewer college type rental opportunities based on the normal high cost of residential properties. Tends to push rental rates above what Mom & Dad can afford. Remember Mom & Dad are also going to be on the lease they are your guarantee for payment.
Large Out-of-State student population. Out of State students can't live at home with Mom & Dad. Their choice is to live on campus (which in most cases is only available for Freshman not for 2nd, 3rd & 4th year students) or large off campus apartment complexes, small rentals or the Animal House. Don't rent as an Animal House be the small easy access to campus property.
High Student Population versus number of on campus housing Dorms/Suites. Availability is easy to determine all schools publish either written or on line the number of units available. The school will also suggest alternative housing solutions the more solutions from the school shows the more opportunity for investors.
High off-campus Rental Costs for student apartments/suites. A comparison of available properties can help you determine the viability of your potential investment. Current high off campus rental costs will allow you to charge more for your property. An example is here in Charlotte NC at UNCC which has a high commuter population ta 2 bed 2 bath condo starts at about $500 per month where in Columbia SC at USC the same 2 bed 2 bath condo starts at $925 per month both are plus utilities. I like higher rental rates.
New Construction or High End Rehab versus older cheaper properties. Mom and Dad want the best for their kids and are not afraid to pay for it within reason. The students expect to live like they do at home (microwave, dishwasher, disposal, high speed internet ready, air conditioning, modern baths, parking). Older cheaper properties usually require constant maintenance and do not have the modern appliances without a big cost outlay by the owners. We tend to buy new properties directly from the builder.
Easy Commute to Campus whether walking, driving, using the local or campus bus service make sure your students can get there safely without a lot of trouble. Safety is the biggest concern with off-campus living. What is between your rental property and campus? It is a wise decision to walk the neighborhood yourself, would you want your own student having to walk the same area to school?
Part-time Job Opportunities many students in today's world actually do work part-time. Having your properties near the retail districts, hospitals, downtown restaurants/offices can make a big impression on the student worker.
High Graduate School Population is where you can find your long term renters. These students have proven themselves are in there for the long haul usually signing leases that cover the full term of their education 2 years, 3 years and will accept a nominal yearly increase. Med School, Law School you get the point.
We have invested in student rentals for years. Our oldest daughter went out of state to the University of South Carolina. During our search to get her qualified for in-state tuition we found that owning rental property with her was the key. This in effect actually lowered our out of pocket room & board expenses tremendously. Rental properties may also offer the owners tax write offs for depreciation and expenses (please see your accountant as to how or if this may apply to your investment situation).