Wed. Aug 10th, 2022

Nelson Partners Shares Valuable Insights in Relation to Investing in Student Housing

2 min read

Student housing has emerged as one of the most rapidly growing and profitable real estate investment domains in the recent years. As the number of students choosing to attend college or university is increasing substantially every year, options for on-campus housing is way falling short when it comes to meeting accommodation demands. This has led to increase in the demand of off-campus student housing options, making it a lucrative investment niche for people wanting to diversify their portfolio. Nelson Partners is a well-established real estate investment company that has acquired, managed, operated and developed many students housing projects over the years. 

Due to the consistently high demand for student housing, such properties can provide a strong return on rental investment. In many cases, landlords charge more money per square foot in a student rental as opposed to a single-family home in the suburbs, as there are roommates involved. Student housing proves to be more secure for the investors when it comes to rent collection, as many students tend to receive financial help from their parents.  No matter they pay the rent on behalf of the students or co-sign the lease, the involvement of parents typically means that the rent is mostly paid on time. 

In many parts of United States, it becomes stressful to own property in many cases due to the rent control regulations. However, rent control is almost obsolete in case of off campus housing as students tend to move every year, which makes it easy to raise rents to the market value and make improvements to the property.

Location plays an important role in underlining the profitability of a student housing project. The rental rates of the students can be higher than the standard residential rates, depending on the amenities available nearby. Locations near college campuses often are more expensive near surrounding regions owing to their proximity to the campus.  However, profits can be offset by management and maintenance, if these tasks are not taken care of properly.  Having young adults and teenagers as tenants can prove to be a hassle for some. The quirks and personality of the students are generally way different from any other students. Hence, it is better to seek out the assistance of a professional student housing property management company like Nelson Partners to manage and operate the property. 

Prior to investing in any property, it is important to do a bit of research on the location and try to figure out its potential. It would also be a smart move to speak to a few locals to get a better grasp of the characteristic and culture of the market one is planning to invest in. Landlords of student housing properties should also try and build relationships with various vendors and businesses in the location, which can contribute to a positive word-of-mouth situation for the property in the long run.