There are countless ways to generate extra money, but most aren't as straightforward as owning a property and enjoying income as others pay you rent. However, many investors are hesitant to become the owner of a student property since they can be more time-intensive to manage. Here are three simple reasons you should think about investing in student housing, and why you'll be happy you did.
1. Enjoy More Income
One of the biggest perks of owning student housing specifically is the fact that these complexes are typically situated closer to campuses. When students are closer to campus and can walk to activities, they may be more likely to pay a higher monthly rent, which can line your pockets.
When you start the search for an income property to rent to students, think about the proximity to local businesses, restaurants, and of course, the school itself. Try to find a place that is categorized by the school as "student housing" since they may give families exploring the college those complex names when they are looking for housing for their child.
2. Diversify Your Financial Portfolio
While stocks and bonds can be profitable, you can't live in a mutual fund, and financial markets change from minute to minute. One of the best things about investing in student housing is the incredible diversity it brings to your portfolio, even if you have invested in real estate before. Spreading your wealth to new ventures can help to protect you if adverse events happen, such as a natural disaster that impacts part of the city where you live, but not others.
3. Better Your Community
When you invest in student housing, you are giving budding adults a great place to live so they can learn what they need to in school to make society a more pleasant place to live. Creating student housing that is affordable, comfortable, and attractive also makes it easy to give your own children a place to live when they reach college age, which can save you a lot of money later. If you want to improve your community, try to create a great place for students to live, study, and generate the kinds of ideas society will need in the years to come.
Anytime you are thinking about purchasing a rental property, it is smart to think about the areas that would be most convenient for students, and which units are available. Talk with a real estate agent about any properties that may generate rental income, and be ready to present a powerful offer if you find the right place. Use this information to find student apartments.