When it comes to student housing investments, they are much better than other forms of investments primarily because of their potential to generate regular income for a longer duration of time with students. Since the property is located close to the college, many students, even from other nations, can seek rent instead of staying in cramped dorms.
Nelson Partners is a highly esteemed name in the field of student housing in the USA. It was founded by Patrick Nelson in 2018 and is a privately owned company specializing in student housing and property management. According to the team of qualified and skilled experts here, there is a high demand for student housing properties. This is why it is a better form of investment over other forms as there are no risks of zero income.
Most student rentals have been built for comfort, so they are built with construction materials that are high in quality. Most landlords believe that students are rowdy and they cause damage to properties that generally use light materials. Student housing properties are built of concrete, and this makes it more appealing for students to live in as they associate concrete with security and safety.
Properties that focus on student housing have a good prospect for the appreciation of prices in the future. Since several investors are interested in buying properties in these areas where the student traffic is high, they increase in value annually. If one plans to sell and earn more money via asset profits and sales, they should buy it when it is affordable.
You might buy a property that is built for a purpose to have it rented for a couple of years. If you feel the time is appropriate, you can always sell the asset and make huge profits if the market booms.
Maintaining the market rents
As stated by Nelson Partners some states in the USA have incorporated rent control that has prohibited owners of property from increasing rents until they get a new tenant. This causes a lot of pain for them, especially if their present tenant shows no signs of leaving or moving out. Due to the above policy, the landlord cannot mark the property.
However, in the case of student rentals, you have the opportunity to do the above easily as you attract a new set of students after every two years or more. This is not a downside for you, even if the property falls in a state that incorporates this rent control.
You will have a fresh set of students who move into your property because they will move out after completing their undergraduate or post-graduate studies. Some often transfer and find a new place to stay that might be closer to where they will go to work soon. This means you will have a constant source of income and do not have to worry about advertising costs for boosting or promoting occupancy in the rental property.