Friday, July 11, 2008

Is Student Housing the Solution to Your Investment Property?

I was watching a video over at Realty Times the other day and I ran across a video that really sparked my interest. The video talked about searching out student housing properties as a way to get through the real estate market slump.

Work and living in DC this video of course interested me considering all the universities we have. I started thinking about the pros to leasing to college students.

1: Short term Lease

Most of the students will be looking for a one year lease at best. This means the property can quickly be turned into a sale property if needed without too much difficulty.

2: Secondary Income Support

Most of your renters will be backed by the finances of their parents. This means the fear of renting to limited income parties can be avoided because their income is backed by their parents.

3: Referrals

Just like any industry the best way to build new business is through referrals. Students are often your best referrals come from your previous residents.

4: Empty Buildings are Expensive Buildings

With laws changing and cost on the rise empty buildings can cost you in tax penalties and fines.

5: Renters can Turn Into Buyers

With the turnaround in this industry it is impossible to turn away a potential contact. Renters can turn into buyers just as quickly as you can turn a property around.

I am certainly looking at the bright side of leasing to college students. I figure it is easy to point out the negative but in this market finding the best possible solution to marketing your unit.

Have you leased out an investment property to students? Do you have any horror stories or experiences you would like to share? Let me know.

1 comment:

Anonymous said...

Renting to students is a great idea; some issues I've had include:

-Revolving leases (one roommate moves out to intern/study-abroad elsewhere and I have to keep redrafting sub-let/lease agreements).
-Neigbhors at times complain about the number of students/parties in house
-Credit woes for students with lots of credit card offers.

Overall though, renting to students is good if you have good tenants.