Have you taken a close look at investing in university housing? The process of investing in university-accommodations is much like that of buying any type of commercial property. Each type of property is its own niche, however, and let’s just say that you have selected a lucrative opportunity. Let’s look at the pros and cons of purchasing student housing as a potentially profitable investment.
You’re not going to own land that is located on site at a public or private university. Purchasing student housing as an investment means that you are going to be looking at properties close by those educational institutions. The closer you get to the university, the more you can charge for rent.
That doesn’t mean you are going to price gouge the students. You are going to charge competitive rates. It is just possible to charge more for conveniently located properties. Students want to be as close to campus as possible for an easy commute.
Look at properties that contain multiple bedrooms. These are more ideal because you can get more rent overall. You’re also going to make the place more affordable for students, as they can come together to rent a place to live with roommates. It’s a win-win situation.
In terms of economics, student housing is great when you look at the real estate market. That doesn’t mean every opportunity out there is a winner. Yet student housing is a niche that can mean profitability. With the right purchase, you’re going to feel much better about occupancy rates.
The downside is that students do not always look for apartments throughout the entire year. Some of them stay year round, and other students only need housing for one semester or both semesters, minus the summer. That being said, you might want to be flexible with your leases so that you can keep those bedrooms occupied.
One other con when it comes to investing in student housing is the turnover in general from year to year. Students graduate and move on, and that means you’re not looking at long-term renters. Yet the industry is self-supporting enough that you should be able to count on new renters each semester.
You are going to have to remain competitive though. And you need to know the ins and outs when it comes to the process of investing in university-accommodations. Are you ready to build your property investment portfolio in that direction?