Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got quick video on investing in student housing.
According to the National Center for Education Statistics, college student enrollment will continue to increase through 2019. As long as there are colleges and universities, there will be a need for student housing. If you live in a college town or near a university, rental property for students may be the perfect investment for you.
If you have kids who are about to go to college, or already IN college, I highly recommend looking into investing in a home, condo, or townhouse they can live in. Why pay rents to someone else, when you can eventually have someone else payoff your mortgage FOR YOU?
Student Housing Investing – Choosing Location
- Focus on college towns where the university IS the city
- Market Research Is there high construction or growing listings means best investments are probably in highly competitive and priced areas
- Are rents on the rise in areas you are interested in? Appreciation?
- Southeastern and southwestern states higher enrollment
- Northeastern schools enrollment caps
- Look for schools with low bed to student ratio forces offcampus living registrars office
- Avoid investments near private universities Housing restrictions
- How far is the property from the school? Walking distance?
- How close is it to the university or city bus stops
- What would you want for your own kid? Grocery store, Laundromat, hospital, etc…
- Contact Real Estate Investment Trusts that focus on student housing shareholders and dividend yield without having responsibilities of ownership.
- Location can mask property drawbacks
Student Housing Investment Renting to College Students
***May be renting to people are living on their own for the first time.
- Consider cosigners parents
- Keep it professional you are not their parent
- Have written, signed agreements and leases everything needs to be documented
- Be clear and concise about every detail don't leave it up to “common sense”
- How to work the thermostat, changing air conditioning filters, trash days, etc…
- Be very clear about rents and responsibilities suggest a house master collects all rent, deals directly with landlord.
- Go over lease expiration dates, renewal periods
- House Parties Discussion
- Charge a higher security deposit
- Adjust rent considering extra maintenance repainting, replacing carpet
Student Housing Investors Investing as a Parent
- Co-signing
- Buying with an FHA loan allows students or nonstudents to purchase a home with an assist from a bloodrelative's good credit standing and cash.
- In addition to not having to deal with dormlife, the ownerchild benefits from building a credit history, having a place to live, and potentially assuming the responsibility of being a landlord to their roommates.
The student housing market provides an excellent rent return on investment. A home that might rent for $1,000 a month to a single family could be rented by the room for nearly twice that. The rapid growth of university enrollments in the United States has bolstered occupancies around the nation, and With heightened economic demand for advanced skills and knowledge, more high school graduates are attending fulltime colleges.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing
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