You want some lucrative investment then student housing would be the best option. If youthink about the investment point of view, investment near universities and colleges would be very fruitful. I have some experiences in my life through which I can assure you real estate investment can be lucrative near student housing.
Keep in mind one point, investment near student housing would not be as easy as you may think. It may come up to with different type of hurdles and barriers you must before jumping into it. Although it is very profitable investment. You may not disappoint by investing near student housing. Only the key is you may aware of some unforeseen dangers coming in your way.
Some of the steps you should follow if you want to make an investment in student housing.
Your first priority should be to pick up a non-commuter school or university.
The most important and first thing you think upon is to choose the school or university with large number of students. The universities which also work with other small universities. The larger number of students will able to make you earn more profit. That would be your first priority. Make sure you do not pick a commuter college or university. That would be a plus for your real estate investment.If you pick a commuter college or university for real estate investment the number of students may be very low. Students of commuter colleges do not choose to live nearby colleges or universities. They are daily scholars and they do not rent out homes for living. They daily go back to their own homes.So, the thing is very obvious the commuter students do not have any commitments for living nearby schools and universities. Then it does not make any sense for investing in student housing near commuter colleges and universities.If you are not thinking about student housing investment then these areas can be best fit for your real estate investment. The universities with large number of students are having full time students so, they commit to live nearby.
I give you an example UMKC university. This university is having more than 17000 students. Some of the students are full time students and some are part time students. Night shift classes are also happening in this university. Some of the students are taking night classes and would not able to go back home timely. So, they use to live nearby. They rent out homes and this is the best place for your student housing investment niche.
Now the main point is you have to discover the campus is overbuilt or commuter. The best and only way is to find out the solution is to visit that area. Talk to the people living nearby. Go to the local property brokers and talk to them, ask them about campuses are overbuilt or commuters.
Seek out the right zone.
You should make zones according to the student’s need.
There may be different zones: Zone 1 can be for the students who want their homes at walking distance.
Zone 2 can be for the students who have bikes to ride.
Zone 3 can be for the students who have their own cars to drive and can easily reach home if that is at some distant.
Rent out as per bedroom.
The best part of renting out the homes to students would be you may not need to rent out the whole house. Rent out the bedrooms you have in the house. The more bedrooms you have to more you can earn the profit. Students usually don’t seek the whole house. They have limited money to expense out and choose a bedroom over the whole house. This would be beneficial for you. You can double your price. For example, you have 3-bedroom set. You rent out per bedroom for $600 and can earn $1800 per month. And if you rent out the whole house you only able to earn $1200 per month. The profit is now very obvious to you.
Student housing is one of the best way to earn more profit by investing in real estate. You only have to be smart and take the right decision.