When investing in any type of real estate, location is very important. This is even more important when looking to invest in student housing. Students need to have housing close to their schools. They do not always have a car, and need to rely on walking or public transportation. When you begin to look for property, look for houses with multiple units. These units should be either, within walking distance of the college or on a public transportation route that travels past the college.
Once you find a piece of property that is suitable for student housing, start doing any repairs that need done. While trying to keeping costs as low as possible, make sure that this is housing students will find acceptable. Carpet that is made for high traffic areas, neutral paint on walls and curtains or blinds are all things a young student would appreciate finding in an apartment. Do not pour money into extras for student housing. Young adults can be quite hard on apartments. Expensive fixtures could possibly get broken costing you more money than is necessary.
When your apartments are ready to be rented out, start by advertising in the local university paper. Students will start looking for housing in the late summer months. They may also want to move out at the end of the spring semester. Make sure you are willing to rent for just the school year. You can also hang signs on university bulletin boards to find students looking for housing. If you are open to having pets in the apartment this will increase your chances of finding tenants. You can charge an extra fee per month to help defer any costs for carpet cleaning or repair after the pet leaves.
Always get a security deposit and first and last month's rent. Most students looking for housing will be in their early 20's. Many young students will not have enough credit built up for a reliable credit check. So, the best way to protect yourself is to ensure you get enough money to cover missed rent payments or damage done to the apartment. Student housing is a profitable source of income for any landlord. Students often pay higher rent because they split the cost with roommates. If you find the right tenants you can make more money than if you were renting to couples or young singles.