The property management industry has witnessed a huge rise in activity concerning the domain of student housing. This industry has been pretty lucrative for both investors and property management companies. Due to this reason, many companies have entered the student housing industry in the last few years. Nelson Partners, for example, is one of the most prominent companies that specialize in both developing and maintaining student housing properties. In many states, around 100 to 200 percent increase in rents for prime locations close to college has been observed in recent years.
Rents have dramatically faster in neighborhoods within walking distance of universities in the last few years. There are much more young people attending college in than ever before. This is majorly due to the fact that society is placing greater value on higher education. Growth in the number of students attending college has obviously caused demand for student housing to skyrocket considerably over the last decade or so. This phenomenon has caused many investors to consider the niche of investing in off-campus student housing. However, before they do so, it will be smart to consider the following tips and strategies when dealing with renting to students:
Always sign a one-year lease: Most students go home in the summer. Hence, if they get the chance, they would simply pay rent for nine months out of the year. Many property owners do not realize that they are missing 3 months of rent a year before it is too late. Hence, it is better to sign a one-year lease to ensure the property stays rented throughout summer.
Sign a joint lease: This implies to a lease where each of the residents is fully responsible for the full terms of the lease. This basically means that if one student drops out of college, chooses to go home and stop paying rent, their remaining roommates shall still be responsible for paying the full amount of rent.
Charge proper deposit amount: People ideally charge two times the monthly rent for an unfurnished, and three times the monthly rent for a furnished unit, when it comes to the deposit amount. Property owners may want to max this out, depending on their relevant housing unit. Many students can be hard on a property, and hence it is better to charge them a proper deposit amount to be on the safer side.
Overall, it is understood that student housing is high in demand. It is a great niche for real estate investors to get into in order to enjoy premium rents every year, especially if they manage to invest in properties near major college campuses. Investors can always contact companies like Nelson Partners to find the perfect student housing prospects to invest in. As the prominence of a college education is expected to only climb up in the future, the demand for student housing is also likely to remain consistent.