Student Housing Good or Bad

4 Replies

I am currently looking at a property that is a student housing rental. There are 2 units 1 4 bedrooms and 1 2 bedroom brings in $3800 in revenue the CoC is $1200/mo. For those who might have Student housing do you save more than 5% for CapEx and 5% for Maintenance?

Any other friendly advise?

I hate to give the "law school" answer it depends. Are the units being rented out furnished or not. IF furnished then I would increase capex. On the maintenance when was the last time upgrades done, and are you planning any updates. I would make sure a parent or guardian is on the lease. High-speed internet is very very very important.

@Roni Elias not furnished. Seeing the property on Saturday but it looks very well updated from pictures so at this point I am not expecting to do anything

It's currently being rented by a student service and has a good track record of rentals

Property has internet but not included. The only utility included is water and sewer, trash, snow removal

If going to see on Saturday book some appointment before or afterward to see the competition. I would understand the parking situation, and maybe lease renewal time put some caps on included utilities. Always try to renew Early!

I have seen some other properties that do the student rentals they look in good shape didn't look like a frat house.  The property also has plenty of parking.  There is a service that places the students into the housing I don't know exactly how it works yet or how they get paid.  The property is reporting rental income and no expenses to this service so my only conclusion is they take money off the top and pay the property owner.  From my understanding all Leases go from June 1st to May 15th so gives a 15 day window for repairs and maintenance before new student tenants move in.  The student rental service appears to deal with the leasing of the property and they said that this property has a wait list every year

My understanding there are no landlord utilities based on the property disclosure except for water and sewer which might be tough to cap