Apartment Investment – The Student Market http://www.karenhanover.com Apartment investment can take many forms and property types. In any selected apartment investment market area, the investor can find family oriented units, units marketed to young professionals, and then there's the student market. Attitudes of investors vary, as there are special considerations in owning and renting out apartments to students. What considerations are weighed by investors in student apartments? Do a thorough market analysis. What type of school is the primary provider of prospective tenants? What are tuition rates, and what is the average tenant student's financial situation? Are there areas around the school(s) that are better than others due to transportation or facilities? Read the newspapers to see if there's regular news of problems in student rental units. Where do students tend to hang out, study and recreate? The apartment investment that's close to their favorite hangouts will be in more demand, and at higher rents. Will vacancy rates be higher? One market analysis item might be the average matriculation period for a student. A four year college with advanced degree studies may keep a student in the area for up to eight years. Of course, students, like any other tenant, tend to move around. And, they frequently have fewer possessions, so moving is a lot easier. Generally, apartment investments in student unit complexes could have higher vacancy rates, but of shorter duration. Getting a new student tenant into a vacant unit can be a shorter process, with bulletin board announcements and rent specials. If units are higher end in the rent spectrum, or larger, then there will usually be roommate situations, so one move-out will not result in a vacancy. Will there be higher maintenance costs? Just because they're young and away from home doesn't make every student tenant a property damage risk. Many are respectful of their home away from home, and will not be problems. However, damage deposits are increased by some apartment investors to minimize the risk. It's also helpful to make frequent visits or drive-bys to keep an eye on the property. Apartment investment in student unit complexes can be quite lucrative. There is a neverending supply of new tenants, and marketing costs are reasonable, with many units rented simply with a note card on a bulletin board. A thorough market analysis and careful due diligence will help to assure a positive student tenant experience and a profitable apartment investment. Apartment Investment – http://www.karenhanover.com
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