The college experience does not always involve being shacked up in a tiny dorm room. Depending on their personal situation, many college students may find that dorm living is simply not conducive to their lifestyle. This can be particularly true for students who are married, already have a family, or older college students.
Additionally, some students simply may find they desire more privacy than a dorm can provide. Whatever the reason may be, many college students are looking for alternatives to dorm living. As a real estate investor, you may find there to be numerous advantages to buying rentals in close proximity to universities.
1. Large Population of Potential Students for the Long-Term
One of the most common concerns of many landlords is the ability to attract prospective tenants for the foreseeable future. By purchasing rental property near a university, this is not a problem. Even when a tenant moves out, you will probably have a waiting list ready to take their spot.
2. Reliable Rental Payments
Contrary to popular opinion, most students who opt for off-campus housing do not actually pay their own rent. In most instances, their parents pay for their rent. This helps to increase the chances that payments will be made in a timely and consistent manner.
3. Stable Property Values
In most university towns, there tend to be numerous appealing amenities in the nearby area. This not only also helps to attract potential renters, but it also assists in ensuring that property values remain stable.
4. Not All Tenants are Students – Professors Need Housing Too!
A large percentage of your potential tenant pool may be comprised by students, but housing located near universities can also attract more than just students. Professors as well as university staff also need housing.
5. Rental Property near a University is a Sound Investment
If the time should come that you decide to sell you rental property, you will likely find that not only has the value increased, but there is a strong demand for your property. The inventory of homes for sale near universities is typically quite limited. It is not uncommon for university towns to enact zoning restrictions that limit the growth of housing. As a result, you will likely face little competition if you decide to sell.
Keep in mind that as is the case with any type of property rental, it is always important to ensure that you screen potential applicants. Using a professional tenant screening service helps make the process easier and gives you greater peace of mind. While many people assume that renting to a college student means dealing with late payments and constant parties, that is certainly not always the case. There are many responsible college students looking for a secure place to call home while they complete their education. You simply need to make certain you screen applicants and verify their source of income.
About Matt Angerer
Matt is the CEO and Co-Founder of VerticalRent. His editorial contributions to Tenant Screening Plus come in the form of actionable information for landlords and property managers. A graduate of Penn State University’s Smeal College of Business, Matt enjoys real estate investing and blogging about various topics as it relates to being a small time landlord.