Student housing/ college rentals

7 Replies

I have a duplex less than 100 feet from a growing university and it sits on a land that has 2 other adjoining lots, both of which I own. I have students renting both apts and i'm constantly getting requests to rent. I'm thinking of building a 4-6 plex specifically to house students on this lot. Haven't done the math to see how much that would cost me. The current duplex I have on the land cost me $40K, put in $15K in renovations and get $630 per unit, $1260 a month. I only pay the water because there is one meter. Prices of houses in the area are rising though but most are around the $100K range. my question is what are the pros and cons of student housing in the long run? Anybody investing in student housing? Would it make sense to build a new building in a street where all the houses are old to meet this need? By the way, the college just built new apts for students across the street but they hardly meet the growing need for accommodation in the area.

Thanks for any info

There's a lot of factors that go into it I am sure you know. The growth of the University and quality of tenants. I am sure you understand that student housing requires constant capex so that will absolutely play a role in it. 

The actual building of the complex will be subject to factors as well. You could have a massive spread between how high of quality you want of tenants. But the correlation between high rent and high quality tenants is lower with college students. 

Best of luck!

I own in Auburn, AL and rent almost exclusively to students (War Eagle)!  I have 2 sets of duplexes that tend to draw graduate students because of the location (farther from campus and in an established neighborhood) and a house that draws undergrads.  I have no problem getting folks in them, but the graduate students are a lot less trouble and are far more careful with the property.  I remember once as an undergrad myself, I went to a "F*** the deposit" party.  They brought bales of hay into the apartment, people were drawing on the walls, etc.  Thankfully, I haven't had that problem yet, but you definitely should consider higher repair costs into your analysis when renting to students.  But, God love them, they're good for income!  lol

My niche is student housing. In my area, students want newer amenities. Their parents will pay more as well. I put subway tile in my rentals, porch swings, central air, upgraded electric, stain the porches. It all goes a long way towards earning top $ (location trumps all of course). Always happy to chat about it further with anyone. 

Originally posted by @Jody Schnurrenberger :

I own in Auburn, AL and rent almost exclusively to students (War Eagle)!  I have 2 sets of duplexes that tend to draw graduate students because of the location (farther from campus and in an established neighborhood) and a house that draws undergrads.  I have no problem getting folks in them, but the graduate students are a lot less trouble and are far more careful with the property.  I remember once as an undergrad myself, I went to a "F*** the deposit" party.  They brought bales of hay into the apartment, people were drawing on the walls, etc.  Thankfully, I haven't had that problem yet, but you definitely should consider higher repair costs into your analysis when renting to students.  But, God love them, they're good for income!  lol

 Second that on graduate vs. undergraduate. You don't make as much money - undergraduate parents are willing to pay more - but you get much higher quality tenants. We rent to a lot of students and we've had no real problems. 

Thank you for all the info. Trying to see the best use of this land.

Originally posted by @Ian Kurela :

There's a lot of factors that go into it I am sure you know. The growth of the University and quality of tenants. I am sure you understand that student housing requires constant capex so that will absolutely play a role in it. 

The actual building of the complex will be subject to factors as well. You could have a massive spread between how high of quality you want of tenants. But the correlation between high rent and high quality tenants is lower with college students. 

Best of luck!

I'm a newbie in this. What is Capex? Did you have to work a deal with the University ?

Originally posted by @Peter T. :

My niche is student housing. In my area, students want newer amenities. Their parents will pay more as well. I put subway tile in my rentals, porch swings, central air, upgraded electric, stain the porches. It all goes a long way towards earning top $ (location trumps all of course). Always happy to chat about it further with anyone. 

 Did you build the student housing or just modified the houses to fit the students’ needs? My location is excellent, just yards from the college. The land is vacant though so I’m hesitant to get something built  to meet this need without being absolutely sure. The college just added a law school and several other majors in the last 5 years. What has been the best layout for you? 

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