The real estate market can be a wise investment opportunity if you’re looking to get involved in property management. And though big cities offer plenty of options, a great alternative is college towns and communities.
These locales have a regular turnaround that consists of students coming and going every year, and even semester. With the potential bargains in real estate right now, it’s as good as a time as any to get involved in the rental market.
Here are some promising areas where you could put your money in a college town, if you’re curious about investing in that market.
Apartments
Apartments make a great investment because they present a few different options. If you’re just starting out in the real estate market, owning and renting out a single apartment unit can be a great way to test the waters and see how you like renting to college students.
However, if you have the financial means, you could consider building or buying an entire complex in a popular part of a college town. This might be either near campus or in a popular downtown area. Both locations can often command the most money, because they offer incentives for students who either want to be near the campus or have a great nightlife.
Either way, it means that the owner of the property can raise prices based on the demand for that type of unit.
Houses
Because the housing market is making a comeback and more people are qualifying for loans, owning a house and renting it out is an increasingly viable option in a college town. Obviously, the more rooms the house contains, the more opportunity to stack roommates and generate greater income.
If you own a much larger house or property, you can even consider renting it out to a fraternity, which will draw in a hefty amount of money for the amount of people that will likely be living in the structure. Houses can be a large investment, but if you’re prepared for it, they can also bring in a good amount of money as well.
When you’re looking to buy and rent a home, consider the markets that are most likely to be desirable to students, in order to assure there’ll be plenty of interest with the advent of each new school year.
Things to consider
If you’re getting into the real estate business and looking to rent to college students, keep in mind the following considerations.
First, there will likely be renting guidelines you’ll have to abide by. For example, some cities allow only a certain number of renters per house, which can affect your plans for the size of the home you rent out. Another consideration is that you’ll need your tenants to have renter’s insurance, in order to protect you from anything that may happen while they live there.
Renting property in a college town can be incredibly profitable for those who own the properties. And when there are many different options to choose from, that gives you a greater market to get involved in.
