One of the many great things about renting to students is that it can have a high “return on effort” (ROE). But before landlords can take advantage of this possibility, they need to understand some of the ways in which student rentals are different from regular rental properties.
In fact, if you go into it with your eyes open and understand the ways in which students might be more appealing than traditional tenants, you may find yourself looking to expand your holdings just so you can rent to more student tenants!
All these new students have to live somewhere, and especially if they’re grad students who are new to the area, they’re going to be looking for student housing off campus but still close by. If you’re a landlord who’s been leery of renting to students (or just haven’t given much thought to doing so), the prospect of having grad student renters may be a little easier to stomach.
With interest rates on the rise, fuel prices spiking and inflation higher than we’ve seen since the early 1990s, the threat of Canada entering a recession is looming on the horizon. While good news may seem hard to come by in many areas, there may be a bright spot for real estate investors who are looking to buy property: this is a fantastic market for student rentals.
Investing in student rental housing could offer you a one-of-a-kind investment opportunity, allowing you to tap into a market segment that only a few other investors in your area are aware of. In addition, purchasing student-oriented real estate, when done correctly, generates a consistent revenue stream with frequent opportunities to add value.
The belief that all student rentals are ruled by the 3 B’s (Beer, Bongs and Bashes) and are a financially risky investment couldn’t be further from the truth. The fact is, when done properly, student rentals can be a lucrative long-term investment, a source of above-average monthly cash flow and relatively hassle-free.
The coronavirus pandemic has brought with it rapidly, unprecedented economic turbulence. Its sudden grip on Canada and its citizens has created a sharp economic downfall the likes of which have never occurred in the country’s history. Some have already started calling it a recession. Regardless, the need for many to pursue government funding is clear.
While everyone else is exploring the most common options, have you considered investing in student housing? You might overlook student rentals in Canada as a niche market, but there is so much more to offer than you might think.
If you’re considering investing and managing student housing rentals, you’ll need to prepare for how to best meet the needs of this particular tenant group.
Student Rentals are a potentially untapped marketBenefits of renting to studentsHigh degree of appreciationLarge tenant poolStable, rising rentsDesirable localesDiscover How To Rent A Property With This Step By Step GuideDrawbacks…