Is It a Good Idea to Invest in Real Estate in a College Town?
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Are you looking for ways to get started in real estate investment? A steady rental income and a reliable tenant pool are appealing factors to investors - and college towns may provide the solution. Real estate investors who are considering buying rental properties in Lawrence, KS by the University of Kansas may be asking - is it a good idea to invest in real estate in a college town? Check out our quick guide to the benefits of investing in real estate near a college and how local Realtor Jackie Giroux has the knowledge and expertise to help answer your questions and will share her insights on the unique dynamics of the Lawrence housing market.
Benefits of Buying Rental Properties in a College Town
The gravitational pull of a college town like Lawrence, KS - home to the University of Kansas - is undeniable for investors seeking stable rental properties. Realtor Jackie Giroux is here to highlight several key benefits and get you started on your real estate investment journey.
College towns provide a consistent demand for housing due to the steady influx of students each year, which translates to lower vacancy rates and a reliable income stream. Properties near the University of Kansas are in high demand each semester of the academic year, providing investors with lucrative investment opportunities. Jackie Giroux has called the Lawrence area home for decades and can provide assistance finding potential rental properties and navigating the specific dynamics of the Lawrence real estate market.
1. Easy to Rent
College towns are goldmines for rental property investors thanks to their built-in tenant pool and a high need for quality housing - that isn’t a cramped dorm room. With a steady stream of incoming students looking for quality housing by campus, rental properties near campus practically rent themselves out, minimizing vacancy periods and maximizing your return on investment. The allure goes beyond just the influx of students - college communities are often thriving communities with a broad range of activities, businesses, restaurants, and entertainment options that add to the appeal for tenants and investors alike. Realtor Jackie Giroux can help you explore these factors and identify properties in Lawrence, KS, that cater to the specific needs and preferences of tenants seeking a lively college town lifestyle.
2. New Tenant Pool Every Year
Unlike many traditional rental properties, college towns provide investors with a fresh tenant pool every year and even each semester. This constant influx of new students each year, particularly at the University of Kansas in Lawrence, KS, means minimal vacancy risks and the opportunity to adjust rents based on market fluctuations with each new academic year. Realtor Jackie Giroux can help you plan investment strategies to attract top-tier students and secure long-term leases, maximizing your rental income and the overall return on investment.
3. Lower Vacancy Rates
A key advantage of investing in college towns like Lawrence, KS, is a significantly lower vacancy rate compared to the national average. According to the U.S. Census Bureau, the average national rental vacancy rate in 2022 sat around 5.8% - down from 6.8% in 2021. By contrast, college towns experience a much higher tenant demand that leads to vacancy rates that are typically much lower than the national or state average. Recent data has shown vacancy rates as low as 1.4% in popular college towns like Knoxville, TN and 2.1% in Ann Arbor, MI. This translates to less downtime for your rental property and a more reliable stream of rental income.
4. Higher Market Rental Rates
College towns like Lawrence, KS, boast another perk for investors - higher market rental rates. Due to the consistent demand from students and young professionals who are willing to pay a premium for convenient housing near the University of Kansas, property investors can command competitive rental rates. This means a higher return on your investment compared to properties in other locations. Realtor Jackie Giroux can provide valuable insights on rental trends and rates in Lawrence and help you identify properties that are the most likely to attract tenants willing to pay the best price for high-quality housing in a vibrant college town.
5. Resale Market
The attraction of college towns extends far beyond steady rental income for many real estate investors. The resale market for rental properties is an added bonus for owners. College towns experience consistent demand for housing, which translates to a healthy resale market when you decide to sell your rental properties down the road. Students graduating from the University of Kansas who want to stay in the area may be looking for affordable first-time homes, while other young families enjoy the vibrant college atmosphere and may want to make that rental property their family home. Additionally - real estate investors attracted to the same benefits you were, may be eager to acquire your property - which ensures a smooth and lucrative sale.
Is investing in real estate in a college town like Lawrence, KS, a good idea? For investors seeking stable income, low vacancy rates, and high returns, the answer may be a resounding YES. College towns provide investors with a unique combination of consistent demand, a diverse tenant pool, and a thriving community atmosphere.
Realtor Jackie Giroux possesses the local expertise to guide you through the specifics of the Lawrence real estate market and help you identify properties that align perfectly with your investment goals. Don't miss out on the potential of a college town investment and contact Jackie Giroux today to unlock the exciting possibilities of the Lawrence real estate market!
