Investing in College Student Housing Offers Risks as well as Rewards


Investing in College Student Housing Offers Risks as well as Rewards
By Scott Rogers • November 28, 2016
As I commented to a potential investor this past week -- investing in student rentals can offer a higher return than other non-student properties, but there are also higher risks associated with such an investment. These include.... Unexpected Vacancies -- If you miss the leasing cycle, or if a student leaves after a semester you can come up short on rental income based on an unexpected vacancy of part of all of the rental property, which is usually not easily filled until the following school year. Property Damage -- Not all college students party, but some do. You are likely to have at least somewhat more property damage on a student rental property as compared to a non-student property. This is a generalization, of course, as some college students take excellent care of the property they are renting. Value Swings -- The graphic at the top of this post shows the wide swings in property values seen at Hunters Ridge over the past 14 years. This is mostly a result of swings in the supply of student housing. As large (regional or national) student housing developers come into Harrisonburg to build new large student communities, the supply of such housing increases, causing vacancy to increase in older communities and rental rates to decline -- which affect property values. Again -- investing in student housing can provide a great return on your investment, but it comes with risks that you should full understand before you make an investment. Learn more about investing at Hunters Ridge here. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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