Hi everyone, I'm a newbie investor and was just wondering is student housing properties a good investment. I would love to hear your experiences and what would be the best way of collecting rent (collecting the rent by the semester like colleges, or accepting the rent every month) Any and all advice would be appreciated. Thx!
Hi Anaya, glad to hear you're getting started. With Student Housing, you treat it like any other Rental, but with a little more management. First, you have to really know the area around the College/University and what is considered and not considered Student Housing areas. Next, find out when the Rental Season is: when students are looking for properties for the next year. Some schools it's in the spring, others the fall, some are booked out a year in advance! You have to get a feel for the culture of the school. Are the houses in great shape? Are they all pretty run down? I prefer to be a nice house in the sea of grossness where I invest in Toledo. Are the leases for the full year or only for the 9 months of the school year? I prefer to keep them all on 1 lease as a group to make it simple to keep track of, as well as the peer pressure for everyone to pay their part of the rent. Some schools restrict their students as to where and when they can live off campus, some will work with you, others are downright hostile. Finally, regarding the Students themselves, you have to establish expectations from day 1. Many of these kids are living in their first house, so don't expect them to know how to change a furnace filter, report a leak, etc because either the Dorms did it or Mom and Dad did. It takes a lot of education and hand-holding, but if you do it right these kids will take care of a house better than most normal renters will. This is more work, but as you'll find out, the Student Rental rates being significantly higher than normal makes up for it. Good luck!
Thank you so much Mr. Poeppelmeier, really appreciate the advice!
Thanks Andrew, I will definitely check them out!