As with any major college, the closer you get to the college, the more rentals you’ll find.
Renting a house off-campus, for many, can be the first leap into becoming an adult and having independence, freedom, and responsibility. It’s also a “step-up” from on-campus living so there is always demand.
There are numerous benefits to renting out to college students near a college, but there’s also a few things to be careful of.
1. There’s high demand for off-campus rentals
The high demand of off-campus living keeps rental rates up and vacancies low.
There’s always new students rolling into campus that will need a place to stay.
While some students will only need a lease for a semester, it can be easy to find new tenants who are wanting to live off-campus.
Also, some students will want to go back home during the summer but return again in August once classes start back up. This can be beneficial if you’re able to rent out the property to students attending summer classes but you have to be prepared for a lull in the summer.
2. There’s a large pool of prospective tenants
If you’re buying a property near a college or university, the odds are that you’ll be renting it out to a student.
Maybe a professor, but most likely a student.
The bigger the school, the bigger the pool of prospective tenants.
Check out the student population numbers for the past 5 years and if possible, see what their predictions are for the next 3-5 years. You want a steady increase in the amount of student’s, if possible.
It’s also important to consider other driving factors to the area.
Are there other businesses around?
What’s the proximity to the next largest city?
You don’t want to buy a rental property that only makes sense for the college population.
3. Many times, the parents are covering the rent
This is fantastic because in most cases, the parents will pay on-time.
They aren’t penny-pinching to come up with rent and don’t mind paying a bit of a higher price for safe housing close to the school.
Also, if their kids damage the property, it will come out of the parents pocket and they can do the reprimanding. You can also assume that most student renters will take better care of the property if their parents are responsible for the damage.
4. The location sells itself
With minimal advertising, you can easily find a tenant right before a new semester starts. That’s not saying you won’t find a tenant during the semester, but most of the students will wait to move between semesters so it doesn’t interfere with academics.
If you’re advertising online, make sure to mention the proximity the property is to the school and any amenities that college-aged kids are looking for such as wifi and separate bathrooms.
Do your research about the college.
- Find out the ratios of students who live on-campus vs. off-campus.
- Is the college experiencing growth?
- What are properties renting for near the college?
- Would your property be desirable if the school shut its doors?
- Do students stay near campus during the summer months?
With a wise investment in the right area, your rental property might be a homerun.
If there’s a college in the market you’re investing in, check out the properties close to the school and see it the investment makes sense.