Student housing guy job question

3 Replies

Hi all. I’m on my second project and now I’ve bought a property that is 4 blocks from a major university. It’s a typical 3bdrm 1 bath. 1200 SQ ft row home in Philadelphia. I am considering getting rid of the first floor dinning room and adding a small bedroom and bathroom so I can make this a 4bdrm place. I figure I am going to rent to students and if I remove the dinning room then I would benefit in having another rentable room and making it a less desirable party spot. I am a little concerned about making the change because I am wondering if tenants will be turned off that there is basically a small living room/kitchen and that is the only communal space in the house. I figure originally I was going to get 500/room so 1500. Even if the three original rooms dip to 400 and the one with its own bathroom goes for 500 than I’d be at 1700 which would be a win. I am gutting the house regardless so the added cost is not great. Do these numbers make sense or will I get a bigger dip in rent with a smaller communal space? Anyone have any experience doing this? And also would this be hurting or helping the long term property value of the property? Thanks in advance!! Jon G

I have found that property values in college towns do not appreciate much, so if you are not in it for the long term, then don't do it, you will damper the single family value.

However, if you are a long term rent and hold, then go for it.  Your cash flow will be a blessing.  Great thing about college rentals is that you don't need anything high-end, and they don't expect high service from their landlord.

I have found that property values in college towns do not appreciate much, so if you are not in it for the long term, then don't do it.  However, if you are a long term rent and hold, then go for it.  Your cash flow will be a blessing.  Great thing about college rentals is that you don't need anything high-end, and they don't expect high service, either.

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