With the recent university culture on rise, it has become a profitable business to invest in student housing. The number of students has been increasing day by day and universities are unable to provide enough dorms to accommodate them.
Know your target customers
University students prefer to live in dorms rather than renting their own home. Usually the dorms are not enough to house all the enrolled students, this will work in your advantage and will bring more interested students. For this reason, it is important to know if there are enough people who will be searching for a home. Take the numbers of dorm residents and the pupils studying in the institute and calculate the total number of extra pupils.
Watch out for frauds in student real estate market
Some people sell already built and maintained buildings to real estate investors. They promise a profit but fail to deliver. The profit estimates are usually much more than what the actual revenue is. They do not mention the problems that are already been faced by the residents. There may be big issues which need to be resolved and are not mentioned on the deal. These kinds of deals will result in a huge loss and can fool a person into losing a large amount of savings.
Students demand good quality
Most students are not willing to compromise on the quality of their living arrangements. They want the comfort that their homes provide, and they will not be happy if you take an old building and fix it up with minor changes. The building should be a comfortable living place. Consider the place which has a gym nearby or good restaurants and where a supermarket is located nearby.
Maintenance may be expensive
Buying an apartment may be easy to calculate in respect of finances but what most people do not take it into account is the cost that will be added to run the building. Students will expect the owner to pay for the repairs of the house. To avoid this surprise, take an estimate of the cost of maintenance and add that to the estimated costs while setting the budget.
Location plays an important role
For students, the location preferred is much different than what may be liked by a family. Where a family will prefer a calm, peaceful place students will like a place which is close to the bus stop and the night life of the city. Apart from this, it may be useful to choose a place a bit far away from family place. This will provide the students a bit freedom to make noise.