Rental Property Investor · Washington, DC · Member since 2021 · 19 posts · 4 votes
Good evening BP community,
Have an opportunity for a multi unit home next to a college in the City of Schenectady NY. Union College, the closest college to the neighborhood at one point allowed the students to rent of campus but has recently (past couple of years) I believe; have stopped encouraging students from renting off campus. Which I believe caused a lot of home owners who were renting to this market to decided to sell. Even though this may have been a desire for the school to have the students stay on campus there are still a to homes in the local area that are renting to college students.
My questions:
-Anyone familiar or are currently renting in the area who can give some in site what is allowed or how to manage the risk if college is encouraging staying on campus?
-Pointers on renting to this particular demographic?
-Additional information i can reference that can help further my understanding of this market?
Niskayuna, NY · Member since 2017 · 16 posts · 10 votes
5y
Union College is a good school. On the smaller size, but a good school for academics and sports students. The homes near the campus are older, large style homes. I guess at one point they could have been considered mansions. Some with stately pillars and lavish entrances. Many of these homes have been bought and converted into multi family dwellings and Professional(doctor and dentist) offices. The main concern in this neighborhood is the area is not as safe as it has been in the past. I think that's why the college has discouraged it's students from renting there. I do think It's a good investment area if you are willing to deal with the changes that the neighborhood is going through.
Rental Property Investor · Albany, NY · Member since 2020 · 4 posts · 0 votes
5y
I am not very familiar with Union College, but I did go to a similar sized school (Clarkson), and now live less than 2 miles from the college. In my case, our college charged a lot of money to live on campus and there were only certain housing options that were nicer than off campus options. Clarkson posted the exact amount you would pay to live on campus, depending on where you lived on campus, and it was very easy for property owners to look at those numbers and price accordingly. It's possible that you can find the room and board rates on Union's website. Any college that makes money will always push students to stay on campus as they will make money off of room and board and are likely to get more money off of meal plans etc.
The area is unique because there are very nice well kept properties as well as run down rentals. Patrick is right and almost all of the homes are very old large houses with many converted to multifamily homes. I have been keeping a close eye on rentals in the area and there have been a few that popped up specifically stating they only rent to college students (zillow). You may be able to contact the person who listed the rental and get some good information on the student rental market.
Lastly, since the homes are so old, I would really recommend you get a good look at the inner workings of the house. How is the plumbing and electrical? A lot of these homes have slate roofs that are very old and can be expensive to work on. The home I just purchased in the area was supposed to have all updated electrical and plumbing. It wasn't until I started getting behind the walls that I realized there is still very old electrical and plumbing in use.
Rental Property Investor · Washington, DC · Member since 2021 · 19 posts · 4 votes
5y
@Austin Stegall appreciate the in site. Yeah I've touched base with a few of the owners both on the street and in area that rent to the college population and its a toss up depending who you speak with honestly. Some owners only want to rent to the female population others don't like either but it brings in good income and other who do it that are remote say stay away because of the turn over and lack of care.
I have had both electrical and plumbing visit the property and it is going to take a whole new system for both, which you can assume is going to be pricy. IF, big if, I'm able to pick it up at the cost I'm looking for ill have some flexibility on the renovation bill.
Rental Property Investor · Albany, NY · Member since 2020 · 4 posts · 0 votes
5y
@Darren Landerway I know plumbing and electrical upgrades can be pricey. I've been pulling new romex through my walls in my attic when its like 120 degrees up there and don't even want to imagine what an electrician would charge. Another thing to consider is if utilities are all separated. Your heat bill could be through the roof if you have poor insulation and old windows coupled with drafts between the frames (which won't be much of your problem if the tenants are paying utilities). It will make your furnace work harder and in turn wear faster though. Having just gone through the tenant screening process, I would not want to do that every year, but I suppose if you are paying for property management then they would handle that. Gross income is definitely higher renting to college students, but I would be curious to see how the net income would come out after renovations and setting aside more cash for fixing the place between semesters.
Rental Property Investor · Albany, NY · Member since 2020 · 4 posts · 0 votes
5y
Lol yes there definitely are. The house I just purchased in the area has chipping lead paint on the garage and I had the seller abate the asbestos lagging (insulation) on the boiler pipes in the basement. Sometimes lead paint can be on old window frames too. A good inspection should be able to sniff out a lot of those issues though. Sometimes they aren't a big deal. The chipping lead paint on my garage can be easily fixed by just vinyl siding over the paint or scaping the flaking paint off and applying a new coat.