For many investment property owners, buying student rentals makes sense because of higher rental yields, consistent demand, and predictable tenancy cycles. You rent out on a per-room basis, plan for a new influx of students every year, and easily align leases with the academic year. However, while it can often make sense to purchase a student rental, that doesn’t mean you know what to look for when searching. Take note of the helpful tips below:
Choose the Right Location
Many students relocate to college towns without vehicles and need to be proximate to all life’s necessities and pleasures. For example, if you visit this website, you’ll see that this university housing is just a seven-minute walk from campus, making it desirable to a range of students.
When looking for a new student rental to add to your portfolio, one of the most important home buying tips is to consider location first and foremost. The most in-demand properties are within a 10 to 15-minute walk or a short bus ride. They are also near grocery stores, public transport options, and cafes or other eateries. If you want to sign tenants easily every year, location matters a great deal.
Install Hard-Wearing Materials
Even the most careful student tenants can sometimes accelerate wear and tear. With that in mind, choose a rental with hard-wearing materials, such as scratch-resistant flooring, robust laminates, and metal or solid wood furniture if you’re furnishing it for students. If the rental doesn’t have such materials, renovate it before your tenants move in. You may then spend less time performing repairs during or after their tenancy.
Opt for Multiple Bathrooms
When several young people live in one home, there is bound to be a line for the bathroom. At least two bathrooms can make everyday life more convenient for your tenants and make your rental more desirable to tenants looking to sign up.
If the rental you plan to buy currently has one bathroom and you’re already planning renovations, explore options to rearrange the floor plan and add a second. Your future tenants will thank you for it.
Verify the Legal Bedroom Count
A home having five bedrooms doesn’t automatically mean that five unrelated students can occupy it. Rules and regulations may apply, such as the legal bedroom count, a minimum bedroom size of 70 square feet, an occupancy permit, and parking requirements. Research your city and local university’s rules and requirements, as your rental yield may be less than you anticipated if you can’t use all bedrooms to your full advantage.
Check the HOA
If the property you’re seeking to buy is a condo, townhouse, or single-family development in an HOA area, read the HOA documents thoroughly before signing on the dotted line. Some associations have rental caps or prohibit you from renting the property out at all. Some even have limits on the number of occupants, as well as parking restrictions and minimum lease durations.
There is much to consider when buying a student rental, from how many students it will accommodate to how it will stand out from other rentals in the area. Take your time to review the location, all related documentation, and the smaller details that can make a world of difference. Then you can make your student housing purchase with confidence.