Philly Student Housing?

Question

Hi everyone,

I've recently developed an interest in real estate and am looking to invest in student housing in the Temple and University City areas in Philadelphia as a way of generating stable, passive income. Has anyone had any past experiences investing in those areas or in the Philly market generally? What was the process like and how have results been so far? Which brokers, lenders and property managers did you work with and would you recommend them to other investors?

Thanks in advance for your time!

Andy Xu · Answer

Thanks Jem for your prompt reply! I plan to have a management company take care of both finding tenants and managing the property itself. Would you know if working with a management company means that I will not have to obtain the licenses you mentioned myself? Also I'd love to connect and learn more about your 4BR.

Dave Van Horn · Answer

Hi @Andy Xu,

I haven't done it myself, but I actually talked to about this very topic in a recent article post (and more in-depth in the comments of the article):

https://www.biggerpockets.com/renewsblog/2016/06/0...

Best of luck.

Dave

Vitaliy Merkulov · Answer

@Jem Jacala, Self managing is an option for some property owners. However be careful about bad tenants targeting self-managers a lot because they tend to be less informed about how important tenant screening is. Most property management companies know to use all the tools that they have to make sure they know who they could be renting to.

Jem J. · Answer

@Sharon Jacas

I don't have rentals by Temple. My areas are serving Phila U, St Jo's and Drexel med students. ( Manayunk vicinity). I do not use property managers. I self manage and utilize handy men and home shield insurance for appliances. My realtor charges ist month's rent to rent out ( does tenant screen, credit checks , agreement and such).

I am now looking at the up and coming Point Breeze area.

Best of luck to you and your hubby!

Sharon Jacas · Answer

@Jem Jacala, where exactly did you purchase your property that's rented out to college students? By chance is it in the Temple U area? I'm looking to purchase there in the near future and would like to hear your experiences about getting units rented.

Anyone else have any experience with student rentals in the Temple U are of Philli?

Kim Nixon · Answer

Hi Andy, I think I can help. I sent you a request to connect, PM to discuss. Thanks!

Jem J. · Answer

One of my recent purchase in Philly area was a 4 BR, 2.5 BA. In ten days, my realtor rented it to college students, with their parents co-signing the renters agreement. The parents  have stable jobs with excellent credit scores. I worked  with a realtor who understands an investor's need. Properties in highly rentable areas can be very profitable. Student renters have their pros and cons but investment wise, a great potential.

In Philly, you need to apply for  a business/commercial license and a rental license. This is a tedious process in the City Hall. An option to consider is having a management company that will take care of the licensing part.