Atlanta Property Management Blog

Do Student Rentals Make Good Multifamily Investment Properties?

System - Friday, October 8, 2021

Are you getting ready to invest in multifamily properties for the first time and are considering investing in a multifamily student rental property versus a traditional rental?

The reality when it comes to student housing is that it is indeed a very smart multi-family real estate investment because student housing is always in demand especially when it’s located near a college or major university.

This article will break down the pros and cons of investing in student housing so that you know if this is the right decision for you to make or not.

What Are The Pros Of Student Rentals?

Huge Demand – Regardless of which state the property is located in it, as long as it’s located next to a college or a major university, there is always going to be a demand for that student rental each year.

The reason for the huge demand for student housing has to do with the increase in student enrollment across the United States. Over the last 10 years it continues to increase as more people from the Millennial Generation, and Gen Z, graduate high school and move on to college.

Sadly, with more people going to college every single year, the average college and major university in the United States has been unable to keep up with the demand for on-campus student housing.

This is why the average student starts searching for rentals that are close to campus as soon as they get accepted at a college or university.

Multi-family student housing is especially attractive because it’s highly likely that the average student who has enrolled in a university is more than likely to tell their friends about the property they are living in when one of the units is vacant. This will lower your advertising costs and make it easier for you to fill those vacancies when they occur.

Recession-Proof – Another great reason to invest in multi-family student housing is that it’s a recession-proof investment.

Yes, this term is thrown around a lot by investors but the reality is that there’s always going to be people who are going to college and will need a place to live so there really will never cease to be a demand for student housing regardless of how the economy is doing.

No Chance Of 100% Loss Of Income – Loss of income is something that multifamily investors have to face each time one of the units in their properties becomes vacant.

Thankfully, when you own a multi-family student housing property, you won’t have to worry about a loss of income because if one student moves out because they transfer to another college. There’s always going to be another student who will be eager to move into that vacant unit so that they can have a place to live, especially if it’s close to the college or university where they are attending.

Turnkey Investment – Student housing is also without a doubt a turnkey investment opportunity because, almost as soon as you purchase the multi-family student housing property, you can start renting it out to students were looking for a place to live.  

International Students – Besides the high numbers of people from the Millennial Generation and Generation Z, that will be going to college in the 2020s, another great reason to invest in multi-family student housing is that there are also more International students who come to the United States for advanced degrees than ever before.

The average international student who comes to the U.S. for their advanced degree, and or a bachelor’s degree is typically from countries like India and China. What most people don’t know is that International Students also pay higher tuition than students who were born in the United States. This makes them a very lucrative base of renter’s that any landlord who owns student housing should be interested in renting to.

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