As a broker for a large real estate company in Boulder, Colorado I learned the benefits of investing in student housing when my agents would tell me about their clients. Parents who would buy an area property, rent it out to the friends of their kids, and then sell it after their child graduated for a lot of profit. Many times their kids didn’t even need to pay any rent because it was covered by their friends renting rooms. And having a student with friends is better than any property management company when it comes to finding students looking for a place to live.
(MSN– Data from US Census Bureau)
When investors call and want information on buying rental properties in the Salt Lake area, one of the first places I advise them to search is close to the University of Utah. Being close to the University gives them a higher probability of finding a renter.
Sure, college students can be tough on a property, but so can anyone. I’ve had renters who seemed like salt-of-the-earth people, but once moved in and comfortable began destroying the property with their lifestyle and poor judgement.
And it’s not only students who want to be close to the University. The energy and culture that surrounds the area attracts alumni and people who enjoy an active lifestyle. This includes families, you ng couples, single people, and out-of-state people who want the liberal atmosphere that usually comes with living close to U.
The Real Estate Bloggers write about this saying, “the market for student rentals tends to be recession proof as a college education is never going out of style.” Good point. The blog also direct us to a post from the LA Times, which says, “According to the National Center for Education Statistics, college enrollment will grow by 11% between 2003 and 2013. Higher education is less affected by economic trends. When times are bad, more people seek a college degree to improve the job prospects; when times are good, a sheepskin becomes even more important. Moreover, children of the baby boom generation are taking longer than their predecessors to graduate, so they need housing for a longer stretch.
Next, toss in the fact that rents for student-housing properties have been rising at a higher rate than at conventional apartments, according to the National Multi-Housing Council, and you have the makings for what savvy real estate investors call a “good niche opportunity.”
Carl Peppers writes more here
eHow offers tips on how to invest in student housing properties
Daily Californian writes Students Try to Find Housing-to Buy
MSN writes Student housing gets good investment grades