My blog

How to Invest Wisely in Student Housing – Nelson Partners

Firms like Nelson Partners and others have carved out a niche investing in student housing throughout the country. But is it a good investment for the casual investor? We'll examine some strategies for getting in on the action. What is Student Housing? Student housing also referred to as "college dormitories" or "student apartments," houses students during the school year. These structures are usually more modern, offering amenities that appeal to college-aged tenants, such as onsite laundry facilities, tanning beds, and lounges with flat screen televisions. What is the Investment Opportunity? When it comes to profits, investing in student housing has some appeal compared to other investments such as stocks and bonds. The problem with those markets is that they move on a daily basis. If you buy or sell an investment today, chances are you'll see a profit tomorrow -- and vice versa. With student housing, the numbers are more predictable. At the end of a school year, you know how many students will be vacating their rooms and heading home for the summer. You also know that new students will need to move in around August or September. Depending on which state your student housing is located (i.e., universities in California operate differently than colleges in the north), you'll also know how much your tenants will be paying for rent. What's the Downside? The downside to student housing is that it is very similar to owning a Class C apartment building -- with one major … [Read More...]