A student apartment investment vs buy-to-let opportunities has its advantages and disadvantages. In a residential setting with mature renters, turnover isn’t such an issue as it is with student housing. To be clear, students can’t necessarily help the fact that they typically just need the housing until graduation. It is just one of the cons when comparing student housing investments to other buy to let investment opportunities.
On the flip side, students are always pouring in to rent properties. They are also much more likely to live in apartments that feature quite a few bedrooms. In a residential setting, you’re not going to rent many four bedroom apartments. Yet an apartment complex near a university with four bedroom units is golden for both sides.
Students save money by sharing apartments with more of their peers. And you make money when you invest in apartments that feature more bedrooms. You might even look into houses as investment opportunities within the student housing niche. College students who have been studying for a few years already sometimes wish to rent a house vs an apartment.
Students have their different preferences, but one thing for sure is plenty of them are looking for housing. There is competition among the many investors, but you can imagine that much of the housing still fills up from semester to semester. It’s more than just about occupancy rates, however, as you have to decide how much you’re going to charge for rent.
As you can imagine, a slight move up or down in terms of what you charge can make quite a difference in your profits. You certainly want to maximize your profits. What else is important?
Since these properties are typically managed by professional staff, maintenance and upkeep is rather self-explanatory. Yet you still need to consider the fact that students can be a little hard on properties. Ideally, you find the luxury apartments that students treat well, helping you to minimize maintenance costs.
When you look at a student apartment investment vs buy-to-let opportunities, you’re going to see that there are quite a few differences. You want to understand those differences, and perhaps you can also get involved in both types of investment opportunities.
You want the properties you purchase to be profitable. Student housing is a trending niche, but that’s nothing new. Real estate investment in general is also red hot, and that’s nothing new either. So which is it going to be? Or will you do both?