- Finding the right property
- Income properties
- Commercial Real Estate
- Bank Loan
Student housing can be a gold mine if you live and invest in a University town. There is usually a large demand for student housing, especially near the universities. This makes if very easy to find tenants. You will often have several applicants for each unit. Students also accept smaller units which allows you to create more rental units in each house. Regular renters usually want a kitchen in each units while students usually are willing to share kitchen and other amenities. This makes it very easy to turn regular houses into student rentals.
Students housing is a perfect option for investors that looks to invest in income properties and that are not afraid of work. Student housing are profitable but they also require a lot of work. You tenant turn over is higher than in regular apartments. This is not a problem since it is easy to find new tenants. It does however generate extra paperwork.
Student housing is subjected to more wear and tear then regular apartments and will need to be renovated more often then regular apartments. Students will however accept a lower standard of living then most other renters which makes renovations cheap. A bucket of paint and some spackle can usually do wonders.
If you want to invest in student housing you should look for large properties that are located near universities or in areas that are popular among students for other reasons. In many cities the lack of student housing is so great that you will find it easy to find tenants even if your property is located 15-20 minutes from the university. Always explore how the students housing situation is in your town before you start investing. That way you know where to look for properties. Interview students to see what they are looking for in your town.
It is usually more profitable to convert a regular building into student housing than it is to purchase already existing student housing. It can still be a good investment to buy finished units but if you have limited resources and have to choose between buying a building to convert or a finished building, you should usually buy the building to convert. Provided you have the time and resources to do so.
Student housing is a long term investment suitable for those who want to build a portfolio of income properties. They are not a good choice for flippers. Most investors do not know how profitable these properties are and it is therefor hard to get their true value if you flip them. This is not a problem if you want to sell them later with a proven record.
There are few things you need to consider before investing in student housing.