Student Rental Investment Market

[Mitch Provost]

I'm curious of the current market demand for student housing and appeal to rental investors. I've owned 2 houses in College Station/Bryan (Texas A&M University) for 8 years. I'm a retired engineer and have been successfully using income from these houses to support my retirement without dipping into retirement savings.

I'm transitioning my business from rentals to a franchise and would consider selling one of my houses (5 br/4 ba - the other houses my son while he's still attending). These homes were built in 2016/17 and I've managed/maintained them myself. They have been the best investments I've ever made, but hoping to have greater cash flow influence with a daily business model.

Is there demand for these types of rentals in the investment community?

[Tatum Littleton]

Cool to hear Mitch, good for you! I believe they have been awesome investments for you. I understand the hesitancy to lease to students but vacancy is so low, that if you can handle a few headaches, it's worth it. 

I believe there is a demand for those kinds of rentals. I can speak from experience as a student at Texas A&M, I lived in a 5 br/5 b house and I knew plenty of other students who lived in similar houses or "Ag Shacks" if you will. From watching the market and myself investing in Bryan/College Station, people are still renting out these properties nicely.

They can be leased as a whole or rented by the room and are usually in great areas, close to the university, grocery stores, and restaurants. I think enough investors are looking to invest in these kinds of properties because of their potential, and with as many property management companies as there are, it makes it that much easier to be an owner.