I am looking to get into college rental properties in my market as there is a huge college population (35k+) students a year needing a place to live in my area.
I know the challenges that come with college rental properties from doing my research, but I was hoping to get some advice on when to buy. For the college area I am looking at classes end on April 24th and begin back up on August 21st. I am looking into properties needing $3-5k worth of work (mostly lipstick on the pig type of work) so lead time to get the property ready once purchased should be 2-3 weeks.
Looking to get advice from others who have purchased college rentals before on when the best time to have the home purchased and ready to show is.
Would appreciate any advise or experiences you could share!
This is going to depend on your specific market. You will want to do a little homework and talk to several students and property managers that handle student rentals in your area. For my market students have traditionally locked into the next school year lease usually 8-10 months ahead. For example I have 3 units which are student rentals and 2 of the 3 already have signed leases to begin in Aug 2017. This can also depend on the number of bedrooms but again will depend on your specific market.
If students sign well ahead of the lease start date in your market this can often stretch out the time between the purchase date and when everything is stabilized with the new higher rent rates after rehab.
Best of Luck
Thanks for the reply Scott!
After speaking to different kids around campus it sounds like kids will typically get a place 2-4 months before. I am also going to speak with my real estate agent this week and others to find out more.
Definitely appreciate the feedback because I assumed all colleges students rent a couple months out. I think a fair assumption being new to real estate is to never assume anything.
College rentals tend to have a lot more occupants then other rentals. As a result of that wear and tear, it might be a good idea to budget more for maintenance.
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