New to investing College town questions.
Denton, TX · Member since 2015 · 9 posts · 1 vote
Check the local laws on renting to college students. The laws for student housing can be very restrictive and you can lose lots of money really fast. Plus student housing is typically for 9 or 10 month leases. Most land lords want 12 month leases.
Wear and tear is also high in student housing. You can plan on making lots of wall repairs if you have student living in your housing.
There may be a cost to upgrade the properties for student housing or the college may have restrictions on students living off campus.
Start with these and see if any of them fit.
Check the local laws on renting to college students. The laws for student housing can be very restrictive and you can lose lots of money really fast. Plus student housing is typically for 9 or 10 month leases. Most land lords want 12 month leases.
Wear and tear is also high in student housing. You can plan on making lots of wall repairs if you have student living in your housing.
There may be a cost to upgrade the properties for student housing or the college may have restrictions on students living off campus.
Start with these and see if any of them fit.
Check the local laws on renting to college students. The laws for student housing can be very restrictive and you can lose lots of money really fast. Plus student housing is typically for 9 or 10 month leases. Most land lords want 12 month leases.
Wear and tear is also high in student housing. You can plan on making lots of wall repairs if you have student living in your housing.
There may be a cost to upgrade the properties for student housing or the college may have restrictions on students living off campus.
Start with these and see if any of them fit.
Thanks Jeff! Really interesting information. I'll be sure to check out the laws to make sure it would be a smart investment before I put in hours of time.
Hello Spencer,
I do invest in a college town and we have been doing well with it. There are pitfalls but there are advantages as well!
Check with the city to see if there are restrictions on who can live together- in my area you can have 3 unrelated adults, I have heard of others saying only 2. Also check if this is something actually enforced, and if so, what are the consequences?
Lots of people are scared of renting to students, but I often find them to be less of an issue than some of my other renters. It really depends on the individual- our school has a lot of people working to pay for school while they are in school, and these students tend to be more responsible. You may also find there are lots that want to rent close to campus that aren't students- they work for the U, or in town, or elsewhere but like the atmosphere.
We usually do 12 month leases- students often stay for the summer or sublet, or just pay for the months they aren't there. Most of our tenants stay for another year (possibly more, our first purchase was 2.5 years ago). There is more turnover than other rentals, sure, but I generally have a vacancy filled well before the current tenant moves out.
I am not scared of old houses- our 'youngest' so far was built in 1913. Just plan on more maintenance and any projects being more involved- electric and plumbing especially since materials and codes have changed so much in 100+ years. We also have 2 in the historic district which will mean more restrictions in what we can do with the exteriors but all in all I find it rewarding to work on these old homes.
Kelly
Hello Spencer,
I do invest in a college town and we have been doing well with it. There are pitfalls but there are advantages as well!
Check with the city to see if there are restrictions on who can live together- in my area you can have 3 unrelated adults, I have heard of others saying only 2. Also check if this is something actually enforced, and if so, what are the consequences?
Lots of people are scared of renting to students, but I often find them to be less of an issue than some of my other renters. It really depends on the individual- our school has a lot of people working to pay for school while they are in school, and these students tend to be more responsible. You may also find there are lots that want to rent close to campus that aren't students- they work for the U, or in town, or elsewhere but like the atmosphere.
We usually do 12 month leases- students often stay for the summer or sublet, or just pay for the months they aren't there. Most of our tenants stay for another year (possibly more, our first purchase was 2.5 years ago). There is more turnover than other rentals, sure, but I generally have a vacancy filled well before the current tenant moves out.
I am not scared of old houses- our 'youngest' so far was built in 1913. Just plan on more maintenance and any projects being more involved- electric and plumbing especially since materials and codes have changed so much in 100+ years. We also have 2 in the historic district which will mean more restrictions in what we can do with the exteriors but all in all I find it rewarding to work on these old homes.
Kelly
Wow! @kelly thank you for the information! I really appreciate it. I also would think it would be a great area to get into because of the location and as I am about to graduate and hear my peers always complain about finding somewhere close to school to live. So I will look into it more.
@Spencer McNeil- that's the same reason we wanted to get into student rentals! When my husband and I were in school apartments and houses were getting leased in September and October for the following school year. We looked there first but the margins are better one town over (also a college town) and we get some students from both schools along with people that work for one of the schools.
We do student rentals as well but it depends on the area how you will do. Students are in some ways less demanding but in other ways more demanding. They are very area specific around us. They want the blocks or streets they want. In our area they expect furnished but that may be RI specific. Old houses are not an issue you just have to know the local laws.
I am a Realtor in Utah. I have had clients buy student housing because their kids are going to school and they want a good investment. I agree with everyone thus far that students are more rough on the property but parents money and high demand can offset that. I suggest very durable materials. Demand will most likely be high always. I also like the idea of 12 month leases. People will accommodate it for the prime location and it reduces turn over. Perhaps a higher refundable security deposit can offset the risk.