Is it a bad idea to invest in student housing?
Category: Student Housing
6 replies
Original post
I've recently been intrigued by the idea of investing in off-campus housing at a college near me, but having been in college before and having seen online discussions, I'm a little hesitant to pull the trigger knowing that college students are particularly hard on units (scuffs, holes, stains, broken appliances, etc.).
On the other hand, I also know you can make good money, consistently, since off-campus housing is limited and you'll always have students interested in your units.
Is it worth it to look into it more and invest in a unit or two? Or should I steer clear??
Reply by Grace Hart
I feel like it can be a good idea, however there can be a lot of turnover. For example: roommates not getting along, some students dropping out. Not to mention the first thing that comes to my mind is damage. I know not all students damage their living spaces, but i feel like it is inevitable.Reply by Daniel M.
I think the demand can definitely make student housing worth looking into but I'd run the numbers with higher turnover and maintenance costs than a typical rental. If the deal only works assuming everything goes perfectly...I'd probably pass.
I'd also look at how close the property is to campus, parking and whether the layout works well for multiple roommates. Those things can make a big difference when you're trying to keep the units occupied.