Student housing is one of the most promising and popular investing in property business industry. Of course, it is kind of a higher level of property investing due to its higher demand and rent amount. When investors decide to invest in student housing, they need to dedicate their time to a higher level because of that. Thus, even though this is promising investing there are still many investors who are discouraged to do it. Student housing is an investment when the property is located near college or university so that the student who is attending the nearby campus rent it. This investing has a specific market but still promising because education is important in life and the number of students never decreasing.
Possible difficulties you find when investing in student housing
There are many benefits you can earn from investing in student housing. It includes a higher rent price, never-ending tenant, higher resale value, etc. However, there are also risks or difficulties which make some investor stay out of student housing. Here are possible hardships you face when student housing:
- The annual turnover of student housing is considered more stressful than normal property investing. In student housing, you will have to deal with quite an intense turnover. For example, you have to deal with senior students where they will only need to stay for one year in your property. Thus, you have to start searching for new tenants at least every nine months. Finding tenants in student housing is easier but the process of finding the right tenants can be stressful. The constant turnover is what makes many investors stress the most.
- Property damage and maintenance also issue that student housing investors should deal with. It is not a secret that student housing investor should look out more for property damage and excessive repairs. You may need a large deposit to provide a large level of protection. However, most investors are often stressed out due to minor things such as running toilets, clogged drains, cracked windows, or neglected appliances. They might look minor but are costly to repair.
- The next challenges you will face when investing in student housing are regulations and guidelines. You must know that most college towns often have fairly strict rental rules and guidelines to follow. You need to find the right way to be allowed to rent your property to the students. There is a possibility that the town already closed the application window for the year and even permanently. Even if you can apply, you still need to go through the long process. Your property will have to pass a series of guidelines and regulations.
- Another challenge that the investor might have to deal with is the annual fee. In addition, there is also constant town scrutiny to deal with. This is because the town should protect the living enjoyment for all property owners. Thus, you will have to monitor your property condition constantly. It even includes noise and parking regulations. It shows that student housing investors or landlords have a lot on their plate.