There are various types of property investing and one of them is student housing. This particular investing has become more popular over the years. This is property investing which focus on the specific market, students. In real estate investor world, student housing becomes popular for many reasons. Student housing means the property is located near a university or college where most population students exist. The property is rented out to students who are attending the nearby campus. The demands are averagely high. It is known that the rent amounts are higher as well. The time needs to dedicate is higher as well. Thus, it is safe to say that this type of investing is not for every investor. You might as well consider many things before jumping in this investing.
What you need to know about student housing
Many investors interested in trying this specific property investing is due to its promising benefits. Remember that education is one of the most important elements of life. People pursue education to have a better life. Thus, the number of education facilities keeps increasing. It leads to promising benefits for student housing business. Here are positive things that might make you interested in student housing investing:
- The location of student housing property is nearby college or university. It means it has an ideal location which is one of the most important factors which can lead to success in property business. with an ideal location, the rent increased. Most students prefer local housing located near the campus they are attending to make everything easier for their education. With this high demand, you can increase the rent price and charge 10-20% more than normal circumstances. This is promising for your cash flow. That is why lots of investors are interested in this type of investing.
- Students will constantly need a place to live as long as they attend their university. Therefore, the demand will keep high in this investing. Even though your old tenants have finished their education and move out of your property, you will have a high chance to fill it again with new students. The cycle is promising that you don’t even have to worry about finding the deal. You just need to make sure to choose the right tenants. You can even find new tenants through word of mouth. It is common for student housing investor to rely on student referral to keep getting their property filled in.
- The resale value of student housing property is higher. Of course, the most benefit to earn form student housing investing is monthly income. However, there are also long-term benefits you can earn from student housing. It is when you decide to sell your property. The value will be increased. You can put the document on the listing so that the prospective owners will be able to sneak a peek of what kind of property you have. When you have higher rental amounts, it will lead your sales price upwards. With high profit you earn, you can even start new investment to expand your business.