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School is Back in Session: Time for a Lesson in College-Town Real Estate Investments!

School is Back in Session: Time for a Lesson in College-Town Real Estate Investments!

Whether you enrolled for the semester or not, you probably took advantage of all the great back-to-school sales this season. So, you probably know that schools everywhere are back in session. If you’re considering investing in some real estate and know you’re ready to take on the title of “landlord,” now is the perfect time to consider snagging some prime property in a college town .Yes, you read that right… a college town.

Some potential real estate investors may shy away from college towns, solely based on the “Animal House” reputations of some student renters. But, there are many pros to this one negative connotation:

Low Vacancy Rates, High Earning Potential

Even a failing economy can’t keep a college town down. When times are bad, many people flock to colleges to earn a degree. Students who’ve just graduated, but have a hard time finding a job, often decide to stay enrolled and earn an advanced degree to make themselves more marketable to potential employers. So, if you choose to invest in some college-town property, you could be looking at a long-term lease agreement. Many student renters are also willing to rent just a room. So, that five-bedroom place that just didn’t seem practical may be perfect for a cohort of college students.

Professionals are Looking for Temporary Housing Too!

Students aside, college towns are full of many educated people, like professors, employers and helicopter parents… oh wait, that’s a completely different blog! On a serious note, all of you potential real estate investors don’t have to bank on young tenants, who are just learning how to take care of themselves, let alone YOUR property. College towns are also full of educators and employers that may need temporary housing while they work.

Rising Rental Rates

Another great reason to invest in a college town rental property is the rent alone. Popular rental site Trulia suggests that, on average, rent has increased 5% in the last year and it is expected to rise again 5% this year. Plus, while the rental market is up, the cost of homes in college towns remains down.

So, even with typical rental maintenance fees, it is very easy for rental property investors to turn an immediate profit on their college-town rentals. If you previously thought you should pass on buying a college town rental property, don’t fail to notice the obvious perks.

Ready to start your search for an investment property? Contact one of our Investment Certified Specialists today!