Savvy investors have created a boom in residential investment properties. Historically low interest rates and a surplus of multiunit properties are driving the charge.
Investors who have rental properties in a college town have an opportunity to tap into a stable source of long-term residential tenants by focusing on features that attract the student population.
Transit, amenities and favorable lease terms are key factors in attracting good-quality tenants in a college town. Following are some tips for residential property investors:
Consider Offering Short-Term Leases: Although some students are looking for year-round accommodation, many are in town only for the school year. Students can be attracted with a lease term that more closely matches their school schedule. As a property owner you can often charge a rental premium for the shorter-term lease option over your average rent, to offset the risk that units may be vacant more often.
Location Is Key: Students are looking for more than just the normal college experience. Being close to school, entertainment, food and other amenities is almost as important as the cost of the unit. When purchasing an apartment complex, consider what is appealing in the area to potential tenants.
Access to Transit: With limited income, many students require access to a transit system in order to get around.
Knowing how to market to potential tenants will give you the competitive edge when tapping into the stability of the student rental market.
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