Buying college town real estate can lead to big payoffs. As a real estate investor, college towns may scare you. You might think, "transient party centers for young adults." But savvy property investors buy in areas around universities. Why? There are lots of great reasons. Read the list below to find out why you should consider buying a rental property near a university.
Reasons to buy college town real estate
1. College towns sell themselves
Usually, college towns are filled with restaurants, nightlife, art galleries, and shopping. Plus, college towns have high walkability scores. Those factors can make it easy for you to market your property.
2. There’s a large pool of renters
At many schools, a large percentage of the student body relocates from other places, and many of those students stay only until they graduate. Then there’s university staff, faculty, and graduate students. Even though they may be more connected to the town for a longer period of time, they still might prefer to rent instead of purchase a property.
3. Strong rental rates
Because there’s a consistent demand for rental properties, you can maintain market value rental rates.
4. Vacancy rates are low
That said, do your best to have tenants sign one-year leases, as vacancy rates go up in the summer because of the school break. If you require students to sign a yearlong lease, you’ll be covered during the summer months.