There are a few real estate rental markets that can rival the consistent demand for rental homes found in a college town. However, each college town possesses its distinct features, and different types of institutions will impact an owner’s capacity 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 desirable. While this is generally true, there are some important considerations before starting your property search.
Learn about the local university or college
For example, it would be helpful to research the campus and surrounding community prior to choosing multiple towns. By collecting info on enrollment history, the school’s projected growth, the current and projected ratio of students to on-campus housing, and any planned developments, valuable insights can be gained into calculating the current and future potential of any given area.
Another significant variable 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 reduces the necessity for off-campus options. Public colleges, on the flip side, might have a smaller number of on-campus housing compared to the number of students attending. However, they often have an extensive number of local, part-time, or commuting students who do not require or want to house close to campus.
Understand the college town’s real estate market
It is equally vital to analyze 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 of utmost importance.
Factors such as safety, facilities, the house’s condition, and the latest improvements can have a significant impact on the ability to attract tenants and charge a competitive rental rate. Another significant consideration is the tax implications of your purchase.
It is crucial to incorporate the current and future property tax amount in the property’s cost, as must any required homeowners’ association fees. It is also critical to be aware of 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 differ extensively from place to place.
Create an investment and management plan
If your research is good and you’re ready to proceed with a real estate purchase in a college town, you can greatly simplify your search by establishing early on how much you want to spend, how much risk you can comfortably assume, and time availability for property management.
Owning a rental property can be quite time-consuming, particularly if you opt to take on most of the duties on your own. Rental homes in college towns are unique in that they have a high rate of turnover. If students are your target demographic, it is important to recognize that there will be a need for increased effort in marketing, screening, and leasing your property from year to year, perhaps even semester to semester.
Hire a professional property manager
Consider hiring a quality property management company to manage your property rather than trying to perform it yourself. Doing so has several advantages, especially if you are arranging to rent to students. By entrusting various responsibilities to a dedicated team, you can ensure the protection of your investment property’s value. Tasks such as placing ads, interviewing renters, illustrating your property, executing periodic upkeep, and handling tenant turnover will be taken care of with expertise and care.
If you are a property investor in Kenosha, you can rely on the professionals at Real Property Management Dairyland for recommendations on the viability of purchasing rental properties in that area. We have gathered market statistics and sought advice from industry professionals to assist you in making an informed decision. For extra information, Contact us today or call 414-400-0016.
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.
