College Rentals in Worcester

[Andrew Sprague]

I’m very interested in the Multifamily rental market in Worcester and have set my sights on there upon graduating school in 3 months. Worcester is home to many outstanding colleges and I want to know how to break into that market. Does anybody have experience renting to college students in Worcester? If houses aren’t available on the market that would be plausible for a college rental should I spend my time reaching out to current landlords with college tenants and try to make an offer? Should I focus on other renters altogether if the college scene is too competitive? Any suggestions or insight would be greatly appreciated.

[Brian J Allen]

Andrew, The market for College Rentals in Worcester is Fierce and ultra competitive. Almost everything trades off market, but there are opportunities. Most deals are done sight unseen and there are few players. A lot has to do with 1031 action. If someone has something they can buy, they then become willing to let something go. The biggest problem with worcester is that there are SO FEW LARGE MULTIS in WORCESTER, so there is little to trade up to. Competition for the Small Multis is big, since there is SOO MUCH MONEY chasing real estate as to try to hedge against inflation. Anyone with $100k can buy a 3 decker and have the leveraged appreciation they want. The key in Worcester is to know exactly where and what you are buying. Most of this activity takes place off the MLS, and by agents. These are not pocket listings or something fishy, but sellers simply don't want their tenants to know they are selling. I have a seller who was able to sell(we close this week), and only showed 1 unit and the basement, and will not let the buyers meet the tenants until closing!!! The market is odd, but there are solutions. The college market is even more complicated as most sellers want CASH commitments, for over 3 months so they can go shopping for something better with YOUR CASH. You can't make this stuff up. So basically in order to buy something, you have to wait until the seller has SOMETHING BETTER THAN WHAT THEY ARE SELLING YOU!! Fun Stuff