Students are a captive market. They typically live within a mile of their campus and require accommodation when school is in session. This can be about nine months a year, depending on the college or university. Today a lot of investors choose to invest in student accommodation because of the great returns they can make. The student market especially in the United States is huge. A large market means that there would be more potential tenants for student housing than many of the other types of properties. Due to the prospects offered by this sector, many companies have made their presence felt over the years, Nelson Partners being one of the major ones.
A good number of students study for degrees that last for two years or an undergraduate degree that lasts up to five years. At times, the students may even extend their accommodation terms in case they plan to pursue further education like master’s or doctor’s degrees from the same institution. Owing to the duration requirements for college, students can be considered to be pretty stable tenants who won’t move out at a very short notice. A lot oflandlordswhoare not in the student housing industry might face a hard time when it comes to listing their rental properties. But so is not the case for students as they usually stay until they graduate from college.
Even though there is no such thing as a guaranteed investment, student rentals do come close. In case landowner does encounter irresponsible students, who do not pay their rent, they can always get guaranteed income through their parents as usually they are the one co-signing the lease along with their students. Moreover, an increasing number of students today are becoming pretty responsible towards their finances. This means that many of them even hand out their rent on the first few days of the month itself to make sure that dealt with the housing expenses properly. Such an approach makes student rentals less prone to delinquencies than other areas of real estate.
As the student housing projects are located in college towns, one can expect a number of international students to seek out to rent there. Universities and colleges are pretty popular among international students, and often get applications from students across the world. This makes sure that there will always be a high demand for student housing properties that are smartly located, and hence the investors will not have to deal with the risk of having zero income.
Student housing properties, especially the ones developed by well-established companies like Nelson Partners, do have a good prospect for price appreciation in the future. As many other investors will be interested in buying a property around any high-traffic area, the valuation of such properties is likely to increase every year. More insights into student housing property investments can be found online.
