Thoughts on investing around colleges.

[Lucian Harris-Gallahue]

This varies vastly on the college and region, but generally what are your thoughts on investing in multi-families on the periphery of a college campus.  I am thinking about investing in a property near a campus and want to hear if anyone has had experience.  

These are some basic Pro's and Con's that go along with this subject that iv been thinking about:
CON'S 

-There is certain to be damage to the property. 

-Parties, and all the circumstances that trail that situation.

-Often times students dont pay rent on time.  

PRO'S

-There is recurring traffic in the area every year, so there shouldn't be a problem filling vacancies.  

-Tenants shouldn't be to needy or demanding.  

-Generally (At least in my area) the college is not in a fantastic part of town, so the real estate is not expensive.  

Let me know what your experience has been or if I have missed anything (Which I am sure I have).  
All the Best! :) 

[Kelly N.]

Hello Lucian,

We invest in a college area and it has been great for the most part.  

In multi family properties with students, you have to keep in mind that they tend to be less mature and able to deal with the other tenants without getting the landlord involved.  Some pay on time every month, others need to pay a late fee a time or two before they get it.  They are often times messy but not necessarily damaging the place, just be prepared for needing to thoroughly clean after each tenant.  And they leave stuff behind, so have a plan for that- let them know ahead of time what can be picked up by the trash collectors, or other options to get rid of stuff.  You will have a very busy time right before the fall semester starts each year.

I have 3 types of tenants- students (about 50% but dropping), young professionals (about 25% and rising) and the others.  I prefer the young professionals, then grad students, then students, then others.  I have had the  most trouble with the last category, as far as paying on time, being demanding, and leaving the place a mess and/ or destroying things.  

Good luck, and feel free to PM my with any questions!

Kelly