Investing in Student Housing Complexes
Student housing complexes provide a high rate of return for investors who are willing to take on the increased maintenance costs that come with a young tenant demographic. In addition, this type of property has a lower risk profile than other multifamily investments. Taking on this type of investment also gives investors access to higher rents than conventional residential rentals. It is important to carefully weigh the benefits and risks of investing in this type of property before making a final decision.
Investing in student housing is a great way to gain access to the lucrative college rental market, which is currently growing at an impressive clip. According to the National Association of Realtors, student housing sales reached $3.6 billion in 2017. The industry has benefited from increased enrollment at colleges and universities, as well as an overall rise in the number of international students who travel abroad for quality education. Read more https://www.sellmyphillyhouse.com/sell-my-house-fast-in-elkins-park-pa/
When choosing a location for a student housing investment, investors should focus on areas with high levels of college enrollment. In addition, they should focus on properties near reputable colleges that attract mature students who will not throw wild parties. They should also choose locations that offer good medical schools and hospitals, as many of these students will be pursuing careers in health care.
If they can afford it, investors should aim for buildings within walking distance of campus. In this way, they can avoid the expense of parking fees and other transportation expenses. Additionally, students who live closer to campus tend to perform better in school. In fact, a property located a mile or less from campus can earn investors up to $131,244 per unit.
Another advantage of student rental property is that it can be rented on a room-byroom basis. This allows owners to maximize profits, since they can charge higher prices for larger rooms and still achieve a high occupancy rate. In addition, this allows owners to diversify their portfolios by purchasing multiple units.
As with any investment, student housing has its downsides as well. Investors should pay close attention to the responsibilities and obligations of their tenants, and they should set clear boundaries regarding what is expected. They should also make it a point to inspect the property regularly. This will help them identify potential problems and address them quickly, before they turn into bigger issues.
Student landlords should also remember that students tend to have shorter leases than other tenants. This can lead to higher turnover rates and maintenance costs. In addition, students are often less reliable than other tenants, and they may not treat their apartments with the same level of care. For this reason, it is important to hire a reputable professional management company to oversee the student housing complex.
With all the turmoil in the real estate market due to economic vicissitudes, it is essential that investors diversify their portfolios. As a result, student housing is a
great option for investors who are looking to diversify their investments and enjoy stable demand.