Top Tips for Investing in Student Housing

Student housing can be a steady and rewarding investment, because there’s always a new class of students looking for a place to live. As with any investment, a clear plan helps. Here are seven things to think about.

1. Research the local student market

Look at how many colleges and universities are in the area, how enrollment is trending and how much off-campus housing is available. Understand what students in that market want, so you can match it.

2. Location matters most

Properties close to campus rent more easily. Check the walk or bike distance to campus, public transportation, nearby shops and the safety of the neighborhood. A good location supports higher rents and better long-term value.

3. Study rents and trends

Find out what comparable properties charge and how long they take to fill. Look for new construction or campus changes that could affect demand, then set competitive rents and estimate your returns realistically.

4. Keep it maintained and offer what students want

Well-kept properties attract and keep tenants. Fast internet, laundry, parking and study space matter to students, and so do safety features like good lighting and secure entrances. (See Most Requested Amenities in Off-Campus Housing.)

5. Know the local rules

Many towns have special rules for student rentals: occupancy limits, rental licenses, zoning and safety codes. Check them before you buy, and keep up with changes.

6. Consider professional management

Student housing is management-intensive: turnover each year, tenant screening, rent collection and maintenance. A property manager with student-housing experience can handle the day-to-day.

7. Take the long view

Demand follows the academic calendar and enrollment. Plan for slower periods, and invest with a multi-year view rather than a single semester.

Getting started

Do your homework, choose the location carefully, maintain the property and understand the rules. When you’re ready to fill your units, you can list them on StudentRent.com. This article is general information, not financial or legal advice: talk to a qualified advisor before you invest.