Pros & Cons Of Investing In Student Housing

[Zackarias Aitchison]

Student rentals make good buy-and-hold investments, or else people would've stopped buying them a long time ago.

But what are the pros and cons associated with a student housing investment compared to a traditional buy-and-hold investment where you're not renting exclusively to students?

Does student housing appreciate more/faster?

How likely is the horror story of tenants absolutely destroying their unit?

How do the vacancy rates compare? Is student housing easier to fill?

I'm curious to see what you have to say!

Cheers.

[Jake Johnson]

Just my two cents. 

Do not split up the lease based on the rooms. Do one lease for the unit. I see owners try and split it up by room to get more money but this causes all kinds of problems. It also makes turnover extremely difficult because you have to work around all the other occupants schedules.

Common areas become trashed because no one is technically responsible for it because they defer blame to the other parties. It is hard to go after multiple parties in this event.

One lease per unit and treat it like you would anything else. Just because they are students does not mean they are incapable of acting like adults.