The US recession has certainly taken its toll on the housing market across the country. Record numbers of homes are in foreclosure, millions of other home owners have defaulted on their mortgages, and house prices have fallen dramatically.
But one niche that hasn’t been affected as badly is that of the college town landlord. Even in the smallest of college towns, students are looking to move out of campus housing by the time they’re juniors so the demand has remained steady, even during this economic downturn.
If anything, the demand for off-campus housing has increased because the number of students enrolled in college has increased, thanks in part to job losses.
Being a college landlord, however, isn’t a walk in the park. College students are generally harder on the property than young professionals or a renter with a family, so you may need to make more frequent repairs. You’ll also have to deal with students moving out annually whereas other landlords try to entice their renters stay for as long as possible.
College students and their parents are also more picky than in the past and trying to pass off a slum as sufficient college living generally won’t work. Students like to have the amenities such as a dishwasher and up to date appliances.
For investors looking to break into this market, search for colleges or universities in towns where the housing costs have fallen. For example, in San Luis Obispo, California, the housing prices have fallen 31% since 2007 yet students are still flocking to California Polytechnic Institute. The same is true of Gainesville, Florida where the University of Florida is located and where prices have dropped 22% over the last three years.
There are no guarantees of success in the real estate market but with some careful research you might just discover a niche market that can support you and remain stable during tough economic times.
For the full story, click here.
