Utah Student Housing Buildings For Sale

Student Housing Buildings For Sale

What is student housing?

Student housing is a formalized system of living in multi-occupancy student residences that include such features as shared kitchen and washroom facilities, main building entrances, and security systems. Student housing differs from traditional residence in that it provides for the needs of students by providing single or multiple occupancy rentable rooms without meals, programming, building maintenance or supervision.

A dorm is a student housing facility for a residential community. The student's common room, bedroom, or apartment is designed and furnished to fit their needs such as student privacy. Dormitories can range from regular student living needs (bedrooms with bathrooms) to more luxurious student residences that offer private rooms with its own bathroom inside of the room. A student residence hall is also referred to as a dormitory - both terms are used interchangeably, but usually refer to the same thing.

What should be considered when investing in student housing?

Amenities: student apartments need to have the right amenities for college students; these include things like recreation areas with pool tables / tv room / video game systems, study rooms, media rooms, mail centers with student mailboxes, fitness center & gym area (with equipment), clubhouse area or "party loft" with pool tables / basketball hoops / foosball table / video games consoles on flat screen tv's, student and staff lounge areas with kitchen / table space to play cards or board games, a computer center or computer lab with student computers for student use.

Being student-oriented, student housing should be designed with student needs in mind. Maximize student space & maximize student privacy by providing comfortable & trendy furniture. The type of student you are trying to attract will help dictate just how student oriented the furnishings should be.

How to decide on where to Purchase a student apartment to rent out?

There are factors that you should consider before purchasing an apartment building. The following will help guide you in how to decide on what type and location of property to buy as an investment:

Location is everything! Think about the location / neighborhood where you want to spend your hard earned money? If it's just a cash flow play then not really, but if it's also about having a good place for yourself or friends and family then location is important. Consider things like public transport links, shopping centers, places where students hang out (fast food joints etc.) schools & universities, sports clubs etc. Anything which will attract student population should be kept close by such as cinemas, pubs / bars / night-clubs / restaurants etc..

The following are major things you should consider when purchasing a dormitory.

You will be renting it out, so think about potential tenants and investing in a property with great amenities for the student community. Don't buy a property in an area where there is no demand and the majority of your rent will go to maintenance cost. Location is most important, next is size and condition of the building, followed by quality of finishes inside.

Do your research on the property market by doing things like reading property reports from agents, newspapers & magazines, online forums for property investors, etc. It's important that you do your research before purchasing real estate especially if it's for long-term hold strategy where holding periods of 5+ years is common.

Decide what type of property and/or type of student accommodation you want to invest in (ie; fully furnished apartments / studios / house shares / rooms). Consider the advantages and disadvantages of each student accommodation. For example; If you are purchasing a property with fully furnished apartments then the monthly rental income will be higher but there are more maintenance tasks to keep up with the furnishings.

Determine what price range you want to buy within. Some investors may be looking for good investment returns and leverage on demand / market conditions while others may simply be looking for consistent cash flow with a cash flow positive property.

While doing your research you may have identified an area or neighborhood which is in high demand with a lot of potential students, this will most likely be costly due to scarcity value. Look at areas where there are less expensive properties with affordable rent prices and still good growth potential & demand for student accommodation.

In summary, purchasing real estate as a student accommodation investment is popular. Students have less money to spend on renting an apartment / house but more time on their hand, so investing in a property that will meet their demands and quality of life requirements can prove to be profitable.

When deciding on purchasing a property always check the local market in the area you want to invest in for demand, growth potentials and vacancy rates.

Speak to a local broker to ensure any kind of zoning requirements are in place and there is enough demand by local schools.