Student housing is becoming widely popular in the real estate market primarily because it generates a high income and is resilient to the economic downturn. Many students either study associate degrees that take two years to last or pursue an undergraduate degree that takes five years to end. They generally extend their student housing terms if they want higher education, like getting their master’s or their doctorate degrees. If you look at the duration requirements for the above college degrees, this means students are tenants for the long run.
Nelson Partners explains why it is wise to invest in student housing
Nelson Partners was founded in 2018 by Patrick Nelson, a skilled professional in the real estate market with 14 years of valuable experience under his belt. This privately-owned company specializes in the student housing industry and its property management. According to the team of experts here, many landlords who do not belong to the student housing industry have a challenging time listing their rental properties. However, this problem does not persist when it comes to student housing, as students generally stay on the property for a long time until they complete their studies.
Car spaces are not mandatory
Since most tenants live close to the college or the university, they do not have to drive a car. Some students cannot even afford a car, and this is a huge advantage for the landlord as he/she does not need to offer car space to the student.
There is no chance of you losing your income
Student housing investment according to Nelson Partners also means there are no chances of you losing your whole source of income as there will always be students occupying your property. Unlike the other forms of rental businesses, you get the chance to retain some portion of your income as there are always sufficient students staying on your property.
The biggest advantage about student apartments is that even when some students finish their studies and leave, other students remain in the property, and landlords still receive their rents. It surely is a huge advantage for owners of private properties that rent out their whole home to a family. When the family leaves, there is no income left for the landlord.
Of course, having fewer vacancies is not ideal for a landlord; however, this does not mean that you will lose your income. You still will have some income that will be generated due to the remaining students paying their rent to you.
Less delinquency over other forms of real estate
Investments come with risks, and you cannot assume that student housing is a guarantee, but it does come close to one. For instance, when you have irresponsible students who escape their financial obligations, you always have their parents to fall back on when it comes to the collection of rents.
It is not uncommon for them to sign agreements to protect your payments. However, at the same time, there are a large number of students who are responsible and pay their rents in time.