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Have you been wondering if you should get a property near a university?
If you’re looking for an investment, having a property for rent within or right next to a university can be a good option. Here are some reasons why you should consider having units for rent within the university vicinity.
High Number Of Population With Strong Demand
Building your property near a university is the answer to one of the most asked questions of any investors/landlords: “Will I have tenants for my business?”
Schools may have their scheduled seasons but students are always present in a university. There is a strong demand, especially that not all provinces and cities have their universities. Students from all over the country will look for and eventually enroll in a university. They will need a place to stay. And more convenient the location of your units to the school is, the more the students will find you.
Established Property Value With Appreciation
Students now are different from the students then. And the way they learn, the way they are taught, and the lessons themselves are continually updating and progressing, so does the stress level of the students and their need to unwind.
This fact encourages other establishments or amenities to open up a business within the area. A university within reach means more people to sell your business to. Having restaurants to explore, coffee shops or milk tea house to stay at, gym, spa, and beauty salons for relaxation are plus points. This can be an additional attraction to your potential tenants. This would also ensure the growth of your property value.
There is a limited space near a university. If you are lucky to get one and in case you are planning to eventually sell your rental property, it will most probably have increased in value by then. The strong demand would also be an additional factor.
Secure Rental Payment
Rental property for students is a good business option because there is a more reliable payment source. Majority of the students rely on their parents for rental fee and they are bounded by a contract. This would most likely mean a more timely and unfailing payment from your tenant.
Stable Rent Experience
A guaranteed market available at all season is a valuable asset to any business. Students may eventually graduate but they will be replaced with a new batch of students. They may stay for a short period and you’re lucky if they would stay for the long term, but the university will always have students to cater. Let us also not disregard the professors and other employees who need a place to stay near the university.
Though there will be a high turnover rate in this kind of business, your available units will probably not be vacant for a long time.
Investing in a property near a university does not guarantee a 100% success every time. Of course, there are “off-season” like during the student’s summer break. And college students can be very destructive tenants. They love to party or study with friends most of the time. They are always busy that they cannot maintain the cleanliness and order in their space at all times. Like in any other businesses, there are things like this to consider and manage.
An investment is a sound when you know and you have your targeted market, there is a strong demand for your business, and there are security and stability for it in the area of your choice. When it comes to real estate business, location is one of the top considerations. Be wise in deciding where to put it and always know why it would and wouldn’t work.
On July 20 to 21, Lamudi will once again host an Affordable Housing Fair at the Glorietta Activity Center. You can expect booth from the Premium Sponsor, SMDC, as well as the major sponsors Lancaster New City by ProFriends and Federal Land. The Minor Sponsors DMCI Homes, BPI Family Housing Loan, and Aboitiz Land will also be there.
RSVP to the event page on Facebook to get updates: www.facebook.com/events/653533641831518/
For more information and to pre-register: www.lamudi.com.ph/housing_fair/
Event partner: Subdivision & Housing Developers Association, Inc. (SHDA)
Media partners: Business World, Business Mirror, Malaya Business Insight, Philippine Daily Inquirer Property, and The Philippine Star
