In recent years, student housing has become one of the most profitable and growing types of properties available. With the number of students attending college increasing at a rapid speed, on-campus housing is limited, leading to a higher demand in off-campus housing. There are several positive aspects about owning off-campus student housing:
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Rent Control Is Almost Obsolete – Owning a property in Los Angeles is stressful because of the rent control regulations. By owning off-campus student housing, rent control is almost obsolete because students tend to move every year, making it easy to raise rents to market value and improve your property.
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Growing Market – There is high demand because more people are attending college every year.
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Higher Rents – Students put more emphasis on location, which means they will pay more for a more convenient apartment. In addition, owners could rent out bedrooms individually for an even higher profit.
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Almost Guaranteed Rents – Most students pay rents through either student loans or a cosigner, usually a parent. With such backing, it is almost unheard of to miss rents.
When looking into areas to invest, it is important to consider the need for off-campus housing. Below are several student housing locations with the least amount of on-campus housing options:
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University of Southern California (USC) – With such limited on-campus housing options, USC only provides on-campus housing for up to two years. The USC neighborhood is also fairly underdeveloped, which gives investors an opportunity to start buying at a lower rate than most other popular university neighborhoods. When buying in this area, it is important to keep in mind the USC patrol area as well as the proximity of your property to the university.
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Chapman University – Chapman University is located in a quiet suburban area of Orange. It is surrounded by small houses, which is an ideal place for small investors who are looking to wet their feet in the student housing market.
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San Diego State University (SDSU) – Since this is a state college, most housing at this university is off-campus. With the location of the school so close to the beach, many students opt to live in off-campus student housing near the beach areas. This type of student housing may be a little pricier to purchase as beach front properties are highly sought after.
Before purchasing a property, it is best to do some research on the area and figure out the potential of owning a property there. In addition, it would be helpful to speak to locals to fully understand the culture and characteristic of the market you’re looking to buy in. It is also wise to build a relationship with different vendors and venues in the area, which could create a word-of-mouth situation for your property.
Once you’ve done your research and purchased a property, make sure you do the following items to attract students to your property:
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Enhance the Appeal – Take the time to highlight the positive aspects of your property in advertisements. For example, be sure to list the walkability of your property relative to the school, beach, or other popular hotspots. Include high-quality photos, floor plans, and other amenities that would make your property more attractive.
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Social Media – Create online content that will peak your target audience’s attention. Make sure you have beautiful photos of your property show up on the students’ feed. Also you can utilize on-campus student ambassadors for your property by giving out free swag or hosting small, inexpensive events.
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Manage Reputation – Make sure you keep up with managing your property. Once a bad review is left on your social media accounts, it will affect a student’s decision to rent your apartment. If there is a bad review, make sure you address the issue as soon as possible and ask for a new review or edited review once you settle the matter.
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Foster Relationships – Contact the universities in the area to develop a long-term relationship. This may give you an advantage to advertise on school-hosted websites or platforms, making your property seem more credible to students.
Overall, it is important to do your due diligence before making an investment in off-campus student housing in any area. If you have any questions regarding any of the above, please call 818.915.9118 or send an email to anie(at)mayeliangroup(dotted)com.