Investing in Multi-Family Real Estate: Buying an Apartment Building in a College Town … The Pros, The Cons …
As you contemplate the purchase of multi-family real estate, you will want to closely consider the pros and cons of purchasing real estate in a college town. Through this article you are presented with the pros and cons associated with buying multi-family real estate … an apartment building … in a college community.
One of the pros associated with buying a multi-family property in a college community rests in the fact that there are a higher percentage of renters in such cities and towns. In other words, there are more people looking for rental properties on a more regular basis than you will find in other communities.
Another of the benefits associated with purchasing and owning multi-family real estate in a college community is the reality that you normally can charge a bit higher for rent than you would be able to charge for rent on a similar type of property or unit in a non-college community.
Yet another of the benefits connected to owning multi-family property in a college community is the fact that the college itself likely will operate a housing office. These housing offices have systems in place whereby they can make referrals to you for students who are seeking apartments to rent.
There are negative sides to owning multi-family property in a college community, however. This factor proves the adage that into everyone’s life some rain must fall.
Chief amongst the problems associated with owning multi-family property in a college community is the fact that students tend to be harder on property than older residents. Therefore, maintenance and repair costs associated with multi-family property in a college community tend to be higher than what you would find yourself paying in another community.
Beyond this issue, in college communities the turn over rates in rental properties are higher than in other locales. Indeed, the turn over rate can really be term by term. Certainly, a majority of students residing in multi-family properties are moving on at the end of the school year.
In analyzing the pros and cons associated with owning rental property, in owning multi-family real estate in a college community, you will be able to determine whether or not this type of real estate investment is right for you today.