Nelson Partners Discusses the Advantages of Investing in College Town Properties

Properties that are located in college towns can provide pretty unique opportunities for investors. Their advantages include and fairly stable rental prices and large potential tenant market. Appreciation is the key goal behind investing in anything.  Investors would want their money to grow during their period of ownership. Real estate in college towns ideally enjoys considerable and steady appreciation. Colleges and universities play a major role in supporting local economies. Companies like Nelson Partners can help people to invest in student housing projects located in popular college towns.

One of the key features of making real estate investment is the diversity of rental strategies and property types available. Investors of today do not have to be limited to long-term rentals. Commercial investment properties and student housing is known to be among the most profitable types of real estate. Even within traditional investments, there are a number of variations when it comes to types of income property.

Here are some of the top advantages of investing in college town properties:

  • High demand: The demand of college town properties is usually high as they are majorly rented out to the college students. According to recent reports, approximately 60% of full time students at public universities and 26% of students belonging to private colleges live off-campus today. These students explore rental properties in college towns to seek accommodation. The tenants of college town properties don’t only include students. Their potential tenants also include professionals, staff and faculty.
  • Consistent Occupancy Rates: Demand essentially is the theoretical aspect of tenting out to the tenants. Occupancy rates underline the practical results. Piggybacking off the point mentioned above, the high demand for college town investment properties eventually leads to steady occupancy rates. Having a consistent occupancy rate is one of the key factors that make such rental properties stand out.
  • Nearby amenities: Occupancy and demand are largely influenced by the location of college rentals. One of the key ways location impacts college rentals is the presence of nearby attractions and amenities. No matter the kind, long term rentals do benefit from the proximity to amenities like Laundromats and grocery stores. There are many culture-rich neighborhoods seen in college towns, which house many restaurants, coffee shops, bars and more.  
  • Reliable Rental Income: Guaranteed pay is another factor that makes college rental properties a smart real estate investment opportunity. A lot of college students sign long-term leases, which range from six months to one year. At times, these leases can also be longer. Most of these leases are co-signed by the parents, especially when it comes to undergraduate students. Student loans or their scholarship can also be used to pay rent. As a result, the landlords do get assured payments, either from the student or their parent.

One can always contact companies like Nelson Partners if they want to invest in student housing. More details on investing in properties located in popular college towns can be found online. Even within traditional investments, there are a number of variations when it comes to types of income property. which house many restaurants, coffee shops, bars and more.  

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By Michael Caine

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