4 Pros of Investing in a College Town
Investment properties that are located in college towns offer some unique opportunities for investors. The advantages include a large potential tenant market and a fairly stable rental price. The disadvantages include constant tenant turnover and major wear and tear on the property. Here are four pros and four cons to help you decide if a college town may be the right choice for you.
College towns can be a great place to buy investment property.
There are many positive parts about this type of neighborhood that can allow you to make a profit investing here. Here are four great things about college towns.
- Large Tenant Pool: In a college town, there is a large population of renters. Each semester, new students enter college and need to find a place to call home. If you choose to invest in rental property, a college town can provide you with a large pool of prospective tenants to choose from.
- Stable Rent: The demand for rentals is high in college towns. This demand can help keep rental prices in the area strong even when other parts of the housing market are failing. In addition, off-campus housing is often paid for by the student’s parents, or even by the college itself, so you may be able to get a higher rental price for the property.
- Fewer Vacancies: The high demand for rentals in a college town can also lead to fewer vacancies. There is always the next student or college employee looking for a place to call home.
- The Area Sells Itself: You do not have to spend much time marketing the area, because the area sells itself. There are many attractive amenities which draw people to college towns. These include:
- Culture and Entertainment: There are endless activities available in a college town. There are theater presentations, art exhibits and museums. There are football, basketball and baseball games to attend. Guest speakers and musical acts are also popular events.
- Food and Shopping: College towns are known for having a large number of restaurants and shops. Restaurants are within walking distance and serve various types of food. There is something for everything. There are big chain stores as well as local mom and pop shops.
- Public Transportation: Another draw of the college town is that they are pedestrian friendly and offer wonderful public transportation. There are university shuttles, public buses, plentiful taxes and sometimes a railroad system. Shops and restaurants are often within walking distance.
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