As the title suggests, investing in a college town is investing in education. How? You become a prime contributor in boosting the education of that particular area by having a house in a college town. You increase the chance of students coming there, staying and pursue their studies.
by 401(K) 2013
Investors have been investing in college town real estate for a long time now. If you haven’t thought about it yet, consider it as an opportunity. College towns really make attractive locations for a number of reasons. Let’s have a look at some of the advantages of investing in a college town.
The most important thing, investing in a college town property means that you’ll have a large number of prospective tenants. That’s obvious because there would be rotations of college students seeking a place to stay for between three and four years. New students enter college each semester and they need a place to stay also.
You might be thinking, what about the dorms that colleges provide? Well, the fact is that there is a shortage of dorm rooms in most colleges. You would have to do some research before investing to see which colleges need off campus housing.
Most students have a budget for their accommodation. If you have invested in a large house with four to five bedrooms, you can charge rent per room. When you calculate the rent of all the rooms, it can go higher than the standard rent of houses in that area. Over and above, tenants would be willing to pay extra if you provided some additional benefits like laundry, food, etc. By doing this, you will definitely have increased profits.
Students who rent your property would be stable. As they are in college for three to four years, they won’t change where they are living unless they find a cheaper place with more amenities than you are providing. Most college students don’t have jobs, so they don’t have to worry about relocating to a new place because of work. On the other hand, since they don’t have jobs, they would like to stay longer and are likely to stay in school.
As for where rent is concerned, these homes are always in demand. So, this demand can keep the rental prices in a particular area stronger than other areas, even if prices in these locations are falling. One more advantage is that, most of these off-campus accommodations are paid either by the college itself or by the student’s parents, so you stand a good chance of being able to quote a higher rent.
Another advantage of investing in a college town property is that the place tells its own story. You don’t have to do much marketing. The area would have various amenities which will attract people to college towns.
Various amenities include good public transportation facilities, places for shopping and eating out. Certain college towns also have a very rich culture and are considered to be happening places. There are baseball and football games taking place in the town.
There’s no denying the fact that college towns have been great places to invest. The main reasons being their large tenant base, educated population and market stability. If you are confident in dealing with college students, you can enjoy great profits, especially because you can take the liberty of renting out the property by the rooms.