Author Topic: biggerpockets podcast on student housing rentals  (Read 1521 times)

clarkfan1979

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biggerpockets podcast on student housing rentals
« on: September 24, 2015, 01:15:23 PM »
I thought this podcast was informative. The advice was given in a more "absolute form" than I would prefer. Instead of saying, "Definitely do not do this" I think it would be better to say something like, "Here are the risks of doing this."

To echo the podcast, the advantages of student housing are higher rents (assuming 3 or 4 bedroom units) and lower vacancy. The main disadvantage is higher turnover. However, higher turnover does not mean higher vacancy. It simply means that you have to dedicate more time to filling it. If you purchase near a University, vacancy will always be close to zero.

http://www.biggerpockets.com/renewsblog/2015/09/17/bp-podcast-140-the-riches-are-in-the-niches-with-bill-syrios/

thedayisbrave

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Re: biggerpockets podcast on student housing rentals
« Reply #1 on: September 27, 2015, 11:18:31 AM »
I own a few student rentals and those statements have been pretty accurate in my situation as well.  I usually have students lining up to rent a room, but few of them stay longer than a year (longest one so far has been there 3). 

Leasing by the room is more complicated, more paperwork and people to keep track of but generally is more rewarding cash-wise. 

It'll be interesting as I continue to accumulate more properties.  I do it for the cash flow, which is why student rentals appeal to me (lower returns with single family homes in suburbia).  Eventually I anticipate needing/wanting a property manager, but it only is really crazy during leasing turnover time (the month of August).  The rest of the year, I get maybe 2-3 calls about a necessary repair or something.  I might look for someone who can offer a cheap hybrid solution, where I qualify/select tenants and send them to the PM company and they just manage the day-to-day operations for a reduced fee.