Rental Properties in a College Town – Long-Term Stability

If you are thinking of investing in a rental property and you live close to a college or university, why not consider something close to campus? Many investors won’t approach this idea with a ten foot pole, but I think differently on that. Owning a rental property near a college campus can be an easy source of stability and long-term rental income, especially in a volatile economic time like this. This idea has a lot of pros and cons, and I’m going to discuss some of them here, but if you keep an open mind and think about the possibilities, this idea could be for you!

The first thing most people think of when they hear about a rental apartment near a college campus is “Animal House.” Admit it, the first thing that came to mind when you read this title was John Belushi crashing a guitar against the wall, right? This is the main argument against renting to college students, “they will destroy my apartment!” In my opinion, that couldn’t be further from the truth. Most college students want to graduate, so they spend more time in the library than anything.; and most parties take place in fraternities and sororities than random apartments two blocks from campus, so the odds are definitely in your favor!

Another thing the naysayers will mention is that the school year is only nine months long, so they will be forced to create short-term leases. While this is definitely a possibility, it shouldn’t be a dig; there are many ways to keep your rented apartment, and the best thing to do is to get to know the people who work in the housing office of the university. If they know that you are an honest owner with a good property, they will not hesitate to recommend you to students.

That being said, I have found two other ways to ensure long-term occupancy and income. The first is to try to rent to freshmen; they often sign long-term leases (I know when I was in college my roommates and I signed a three-year lease and lived in the same apartment from sophomore year until graduation). The other way to get a long-term occupancy is to rent to faculty. It seems like a no-brainer, but most investors don’t even bother to consider that a university needs more than students to function.

This brings me to maintenance. Obviously with any apartment there will be damage and repairs needed. In this situation, you may need to work a little more than usual, but that shouldn’t be a deterrent. Here is my thought on this subject; College students are young, far from home, and exploring their newly found freedom for the first time. They don’t really care where they live, which means You don’t have to rent them a suite at the Waldorf. As long as the apartment is clean, free of pests and rodents, and structurally sound, most college students would happily live in it.

This means you don’t have to provide state-of-the-art fixtures and appliances, just working ones, so anything that breaks is easily (and cheaply) replaceable. You also won’t have to break the bank to get the apartment ready to rent again; think about it, for a case of beer, you could probably have those grads clean and paint the place for you! That is the epitome of cheap labor.

Owning a rental property near a community college has many advantages, many more than I have listed here, but I hope this article has made you think about seeing diamonds where everyone else sees them in the rough. Happy renting!