Student Rentals - Pros & Cons

[Michael Temple]

My Realtor took me through several houses about a week ago that was in a neighborhood that is primarily student rentals and is near our local University. One house was interesting to me based on purely the numbers. The house had 5 bedrooms but was still a small house. It had 5 students renting it, each paying $250 per month, cheap to them, but when added together this house was earning a staggering $1,250 per month! The asking price was 67K and appeared to be in decent shape for what it was.

My immediate thought was that this was an incredible investment. I realize this is only a 9-month lease so that has to be taken into account. I also realize you will almost always have new turnover every year and will get a different crop of students each year.

However, I am thinking I am still missing A LOT in terms of investing in student rentals. I would really like some of the landlords experienced in student rentals to give me their thoughts on the pros and cons of investing in this niche market.

[Will Gaston]

@Michael Temple in my experience the main pros are financial, especially the cash flow and ability to raise rents. The downside is without a doubt the management. Much more intensive than just about any other niche. 

The post may be helpful: College Student Rentals