Parents: Have You Considered Entering the Student Housing Rental Market?

Monday, October 11, 2021

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The student housing market has been evolving over the years and there is a new emerging need happening near college and university campuses across North America. Rental vacancies are extremely low, creating the demand for more off-campus housing options for students.


This creates an even greater opportunity than before for parents to purchase properties for their post-secondary school-bound children to live in while attending college or university.


Here are some of the reasons for parents to consider entering the student housing rental market.


1. Cheaper Accommodations – In some areas, paying the mortgage and utility fees for a home can be less expensive than paying on-campus accommodation fees or off-campus housing rental rates. Roommates can also help share costs.


2. Reduced Expenses – Annually, tuition and on-campus residence fees can often be on the rise. Because of this, parents can choose to purchase a home for their children to ensure fixed housing expenses for the duration of the student’s academic career. In addition, some schools offer local tuition fees that provide a reduced rate for residents. By owning a home in the area, students may be able to take advantage of these savings.


3. Stability – By purchasing a home, students will not have to worry about wait-lists, application deadlines for housing, or looking for a new accommodation every year. There would be no obligation to move during the summer months or vacate the dormitory on holidays. Parents also have an added bonus of eliminating hotel costs when visiting their children. 


4. Skills Building – Maintaining a home can teach students many new skills including investments, money management, paying bills, and property maintenance. Some students can learn about loan programs tailored to a first-time homeowner, if applicable, with the support of a relative.


5. Return on Investment – As graduation approaches, parents can decide whether they want to sell the property or continue to rent to other students attending the college or university. By renting out the home, parents are able to gain an additional form of revenue, as well as appreciation in the building, until ready to sell.


In summary, purchasing student housing for your child can be a profitable venture, while also supplying needed off-campus housing options for students in the community.


SEE ALSO:  Investing in Student Housing

The Team