Nelson Partners Briefly Talks About Investing in Student Housing Projects
The practice of investing in student housing properties has witnessed a huge growth over the last decade or so. Investors across the world today are trying to explore means to capitalize on the demand for student accommodation in major university cities. This trend is especially prevalent in the United States. There are many companies dealing with student housing projects present there, such as Nelson Partners. It is a nationally recognized real estate investment firm specializing in developing, acquiring and managing high quality student housing properties.
Today student housing projects are becoming a key part of the portfolio more than ever before. To make the best out of this investment vehicle, one needs to seek out properties providing higher yields and having steady occupancy levels. There are multiple key factors that make student housing properties a smart investment. The first is that these properties are usually affordable to invest in owing to their location. They ideally are located in the outskirts of a city center and on the fringe of university campuses. Secondly, as students usually pay higher rent than regular tenants, landlords can expect considerably high yields from student housing projects. At the right location and property, yields of up to 20% higher for a shared student housing is possible. In most cities where there is a renowned college or university, a steady demand for student accommodation can be found. They provide landlords access to a stream of tenants consistently and reduces the odds of their student investment property remaining unoccupied.
College enrollments show no signs of slowing down. Hence, the need for student housing is unlikely to go away either. As long as there are student getting enrolled into colleges, people investing in student housing projects would invariably have renters. Such an approach can provide them with the stability that they are unlikely to find any other market. The marketing expenses additionally are also much lower in this domain, as students are prone to actively seek out housing.
Rental prices associated with student housing projects are likely to stay more stable than any other type of property investment. They typically do not get majorly impacted by market changes as well. There shall be always an abundance of renters for student housing projects, and hence rents may not fluctuate much in this domain. This obviously varies for each particular market, and hence it is always smart to research rental patterns and prices prior to investing in a certain area. People who are looking for a steady income stream, student housing rentals can be pretty in demand, as well as has a good potential for a steady income stream. In case a tenant leaves, there shall always be multiple other students looking for housing. To know more about student housing market, people can always visit the website of real estate companies like Nelson Partners. This company specializes in developing, acquiring and managing quality purpose-built student housing assets.