Renting to college students is a lucrative way to earn money, find a consistent network of tenants, and diversify revenue streams. In fact, only 22% of students in the US prefer living on-campus, whereas 23% live in properties for off-campus housing, and 55% live in other accommodation types.
In Greensboro, with its many colleges and universities, this leaves a massive gap in the market for flexible, rent-based, affordable housing for college students.
Despite the apparent advantages, however, many people are on the fence regarding renting to college students. That’s why we’re highlighting the many benefits and addressing the many concerns associated with student housing.
Student Housing Greensboro, NC
Greensboro is home to several colleges and universities, including the University of North Carolina, Guilford College, A&T, Elon Law School, and Greensboro College.
In total, these colleges cater to thousands of students, which helps create a strong case for investing in student housing in Greensboro, NC. From a visit to the Weatherspoon Art Museum followed by local brews at the Red Oak Brewery to walking around the City Market, catching live music, or watching free movies at the city center, there’s no shortage of entertainment in Greensboro. Renting to students in such a vibrant college town is an excellent opportunity to expand your business and provide the following:
- Close Proximity: The majority of students don’t have cars and spend most of their time on campus. They usually prefer to live as close to campus as possible, with easy access to entertainment, dining, and shopping.
- Affordability: Most students are on a tight leash regarding finances; after paying for tuition and necessities, they may not have much to put forward toward on-campus housing. Most prefer to stay nearby campus and will most likely split the rent with different roommates.
- Safety: Students, as well as parents, are always concerned about safe housing. A private landlord should ensure that all locks work, the building is up to code, there is ample lighting, and a designated area to safely hold mail and packages.
The Pros and Cons of Investing in Greensboro, NC Student Rentals
- The Pros
- Reliable and Consistent Demand: Because college campuses attract a continuous influx of students seeking housing options near the educational institution, student rentals have a reliable and consistent demand that can provide a stable rental income stream.
- Higher Rental Returns: Student housing is different from traditional residential properties in that multiple students will typically share a single unit. This allows for higher rental rates while still keeping the house affordable and translates to higher yields and increased cash flow.
- Low Vacancy Rates: With the high demand for Greensboro off-campus housing comes lower vacancy rates, reducing risk, raising rates, and in general, helping maintain a steadier income stream.
- Long-Term ROI: There’s nothing better than a healthy return on a long-term investment. That’s what makes student housing near universities in Greensboro so enticing—as educational institutions grow and develop, attracting even more students, the value of the property is likely to appreciate over time.
- Diversity of Tenants: Universities are composed of students of different backgrounds and countries of origin, providing a chance to cater to a diverse pool of tenants and expand your rental base.
- The Cons
- Higher Tenant Turnover: Due to the transient nature of the college experience, students tend to move in and out of rental properties at higher rates than traditional tenants. The constant turnover can take effort to combat and generally leads to increased maintenance costs due to frequent property inspections and repairs.
- Seasonal Demand: While demand for affordable housing for college students is typically high, it is also concentrated during the academic school year. That can lead to potential vacancies during summer months, requiring additional planning to make up for the temporary hit to your cash flow.
- Difficult Tenants: College students don’t often have established rental histories, and their behaviors can sometimes be unpredictable or even destructive. Strict oversight and monitoring of the property may be necessary to ensure your investment is protected.
- Unstable Tenants: Students generally aren’t financially stable, and their ability to pay can depend entirely on financial aid or parental support, which increases the risk that a tenant may default or, more likely, be delayed in sending payment.
- Property Damage: There’s no sugar-coating it: college students, due to their lifestyle and limited experience with property maintenance, tend to be more prone to damaging a rental unit than traditional residential tenants. And this increased wear and tear could require more frequent repairs to the property.
However, despite these few cons, strict renting criteria can ensure responsible tenants and a positive landlord-tenant relationship.
SLT PROPERTIES
At SLT Properties, we strive to provide quality services for property owners and tenants looking for rental homes. Offering premium rental property management in Greensboro, NC, and surrounding areas in the Triad region, we’ll take care of every detail from rent determination to maintenance requests.
As a leading property management company, we can help you find a property to invest in, list your current property to find reliable tenants, and more.
Visit our website to check out our current listings, and contact us with any questions you may have.
