As someone who wants to get serious about a real estate career, it's time to learn about some newer options available out there. While you've maybe written off doing home flipping, buying apartments, or even participating in AirBnB, investing in student housing might become your best option.
Many more people are finding this an appealing real estate investment opportunity. One reason is the extreme demand, especially with housing located near a college.
While student housing investing isn't new, just how lucrative is it today?
A Billion-Dollar Industry
According to recent statistics, real estate investors invested $4.5 billion in student housing as of 2015. This takes into account that many investors can count on students continually wanting to rent limited housing near universities and other schools.
Further stabilizing these incredible investment figures are the continuing numbers showing an increase in students wanting higher education. As this increases, the demand for housing continually goes up in most cities. It's led to some housing shortages a number of places.
While this might sound enticing, student housing investing still has its share of challenges. Here's a few things to consider to assure it's really worth your time and money.
Students as First-Time Renters
Keep in mind that because you're renting to students, they likely won't have a prior rent history. As such, it can lead to more risk in who you rent to.
Expect to give them a little education about their responsibilities when allowing them to stay in your rental. Even if the students are over 18, it helps to have their parents as co-signers for accountability on any potential property damage.
Linking Up With Nearby Colleges
A good option in student housing investment is to link up with nearby colleges to advertise your accommodations. Since the college near your properties likely don't have enough dorms available to accommodate all students, partnering with them can become a great marketing tool.
Many colleges are willing to promote nearby student housing like yours, as long as you're proven reliable. The school may promote your housing on their website, hence giving you a larger scope of potential student renters.
Making Your Housing Competitive
Once you land renters, it's a good chance you'll be able to keep them long-term. Since higher education means four, six, or eight-year degrees, you could have reliable rent income for quite a while.
Regardless, remember your competition. No doubt you'll have other nearby student housing competing for your business. Take time to advertise what makes yours different.
Offer things like fitness rooms or other special amenities to compete with some of the more luxury amenities even colleges now offer.
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