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Property investments come in many sizes and forms, one of the more popular of which is college rental properties. Investors be warned - this is not a good fit for the passive investor. Investing in a property that will be rented to college students does have a little more work, often hands-on work, compared to stocks and bonds that are managed by your financial advisor. That is not to say that college rental is not a good investment opportunity. In fact, it is a great opportunity, and with more than 70 million students enrolling each year in the U.S., there are plenty of choices for how and where you invest.
Consider these pros and cons as part of your research into college rental property.
There Is Work Involved - For You: Landlords will need to be hands-on. Renting to students means regular check-ins, damage control, neighbor relations, and property maintenance. Alternatively, you can hire a property manager to take care of things on your behalf.
Tenant Turnover: Students don’t often stay in the same property for more than one year, which means you could have to advertise every year. To encourage a good tenant to return, offer an incentive like a lump sum off their next year’s rent. You could also offer your tenants a cash reward tot find tenants for the following year.