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Choosing to invest in student housing can be daunting at first. With increasing demand also comes higher turnover, so it’s important to consider your investment options carefully before taking the leap. While high turnover can be considered a negative attribute to housing investments, it can actually benefit you in the long run. Read more to find out if a student housing investment is right for you, and how to navigate the process efficiently and seamlessly.

How To Invest In Student Housing

Your first question might be as simple as, “Where do I start?” Luckily, our established team is prepared to help you navigate the business of renting to college kids one step at a time. Investing in real estate is proven to steadily build wealth, but how can investing specifically in student housing boost your real estate portfolio

It starts with good research: making sure the area you’re buying in has high enrollment rates at nearby universities or colleges, that the market is solid and growing, and that the property you’re investing in is attractive to students. Choosing a college town that’s popular among out-of-state college students is a great investment, as the renter market will be more saturated as opposed to a college or university where the majority of students can commute from home. In addition to checking on the student housing market, you’ll want to make sure that you can make additions to the property you invest in, like extra bedrooms or bathrooms. 

If you add onto the existing property, you can collect more rent from more tenants while still keeping the individual renting cost reasonable for a student’s budget. It’s a delicate balance: you want to pay off your mortgage as quickly as possible, but you also want to keep your prices attainable to the average college student. 

Pros of Renting to College Kids

Cons of Renting to College Students

Types of Student Housing To Rent 

Apartments

When it comes to investing in student housing, you have options that will be attractive to students regardless of the property. Some students prefer apartments because they get privacy, above-average amenities, a better sense of community, general convenience, and lower maintenance requirements. Interestingly, not having to maintain a yard seems to be the #1 reason students choose an apartment over a house (we don’t blame them!). 

Houses

On the other hand, houses can also be attractive to some students who are not concerned about longevity: once out of the dorms, the thought of moving again in a college town without the help of parents can be daunting. Some students may also prefer the direct relationship between property owner and tenant instead of having to go through property management and the like. 

Houses may require more maintenance, however, especially if they are older or have a high occupancy. Generally, investing in an apartment with a limited number of tenants is a good place to start. If you’re a veteran in the real estate investment game and willing to deal with the maintenance costs of a stand-alone property, a house can be well worth it, too. 

Financing For Student Housing Investment 

Depending on your financial situation, our professional team is here to help determine what’s right for you. Apart from a traditional mortgage, options like a bridge loan can be beneficial during in-between periods or while awaiting longer-term financing. Student housing has proven to be quite resilient in times of economic recession, which makes the student housing market very competitive. Hard money loans can help you be the first to snatch up a good deal on an investment while you await mortgage or other traditional financing approval. Learn more about different financing options for your student housing investment by contacting us today!

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