College towns often boast a high and consistent demand for rental homes, making them a desirable option in the real estate market. However, every college town possesses unique qualities, and various types of educational institutions will influence a landlord’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 tempting. Although this is frequently true, there are several crucial considerations before starting your property search.
Learn about the local university or college
For example, it could be helpful to research the campus and surrounding community before choosing one town over another. Gathering 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 analyze any given area’s current and future potential.
Another essential aspect 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, lessening the requirement for off-campus options. Conversely, public universities may have lower on-campus housing in comparison with the number of students attending, but they may have many local, part-time, or commuting students who do not require or prefer to live house close to campus.
Understand the college town’s real estate market
It is vital to understand 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 critical factors.
Factors such as cases of crime, facilities, the house’s condition, and most recent renovations will all affect your ability to attract tenants and set a competitive rental rate. It is also imperative to comprehend the tax implications of your transactions.
The current and future property tax amounts must be included in the property’s pricing, along with any required homeowners’ association fees. Furthermore, you need to verify 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 might fluctuate significantly from place to place.
Create an investment and management plan
If your research yields positive outcomes and you elect to proceed with a real estate purchase in a college town, you can substantially narrow the scope of your search by anticipating how much you want to spend, how much risk you can comfortably assume, and how much time you have to devote to property management.
Owning a rental property entails a substantial amount of time, particularly if you want to deal with most of the responsibilities 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 imperative to understand that a significant amount of effort will be necessary for the marketing, screening, and leasing of your property on an annual or even semesterly basis.
Hire a professional property manager
If you decide not to personally handle the duty, you have the option of hiring a quality property management company to manage your property. Participating in this activity offers concrete perks, particularly if your intention is to rent to students. By entrusting responsibilities such as advertising, renters screening, property tours, regular maintenance, and handling tenant turnover to a dedicated team, you can efficiently protect your investment property’s value.
Real Property Management Your Home helps property investors in Ooltewah evaluate the viability of investing in one or more rental properties in a particular location. Our organization has extensive market data and industry experts who can provide you with the required knowledge to support effective decision-making. Contact us today or call 423-704-9944 for additional details.
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.
