As a real estate investor, you’re always looking for new opportunities to provide a solid investment return. One area that has been gaining popularity in recent years is student housing. With more and more students looking for affordable and convenient housing options, investing in student housing in California can be a lucrative opportunity. Here are five things you should know about investing in student housing in California.
1. The Location is Key
The place where the student housing is situated is really important. It’s best to buy houses or apartments near universities and colleges and buses or trains that people can use. In California, you should look for spots where many students live, like towns where colleges are or busy city parts with many universities. This way, you’ll always have many students who want to rent from you yearly.
2. Amenities Matter
When students search for a place to live, they’re not only searching for a bed. They also want things that make their lives better and more comfy. Look for places with things like washing machines you can use, places to exercise, spots to study, and areas where everyone can hang out together. These things you get in a place are called amenities.
Amenities are like magnets that pull students in; they might stay longer when they’re happy with these extra things. This longer stay means they’ll agree to rent the place for months and pay more. If you give them nice amenities, they’ll probably want to stay longer, which is good for you. This also means fewer students leaving and more money coming in for you.
3. Understand the Local Laws and Regulations
When you’re thinking about investing in homes for students in California, it’s really important to know the rules that are in place for renting out houses. These rules include where houses can be built, making sure houses are safe, and the rights that the people renting the houses have.
Know all the applicable rules before investing in a house in the Bay Area. This will help you avoid paying big amounts of money as penalties or disagreements with the law later.
4. Consider the Seasonal Nature of Student Housing
Remember that student housing changes based on the time of year. This is important to consider when investing in places for students to live. Most students search for a place to stay while attending classes, usually during the school year. This means there might not be as many students looking for housing during the summer months. This could lead to your property being empty for parts of the year.
To help with this situation, you can think about offering shorter leases. Instead of having tenants commit to staying for a whole year, you could let them rent for just a few months. This could be especially useful for people who aren’t students and only need a place to stay for the summer. Doing this ensures your property is always occupied, even when students aren’t around.
Another option is to consider summer sublets. This means letting someone else rent the place from your main tenant for the summer months. This way, even if your main tenant is a student who’s gone for the summer, someone else can still use and pay for the space. It’s like sharing the rent for a short time.
5. Work with an Experienced Property Manager
When you decide to buy a student house, it might seem tricky and takes up much time. But if you want your investment to do well, think about getting help from a property manager who knows much about student housing. They can assist you in finding and checking out the people who want to rent from you.
They’ll also deal with fixing broken things and ensuring your house follows the local rules and laws. This helps you make the most money from renting and keeps you from having too many problems. Sometimes, renting to students can be a bit risky. But if you work with the right property manager, they’ll ensure only good tenants rent from you.
Investing in student housing in California can be a smart move for real estate investors looking for a steady income stream. By focusing on location, amenities, local laws and regulations, seasonal fluctuations, and working with an experienced property manager, you can increase your chances of success in this market.
As always, do your due diligence and research before investing in any property to ensure it fits your investment goals well. Are you interested in student housing opportunities in California? Bay Area Home Buyers can help you learn more about the market and what to look for when investing in student housing. Give us a call today! 408.413.3087