The recession has been hard on the majority of the real-estate industry, all except for college town landlords. During the economic crisis more people have been going back to school in the aftermath of job losses – this has led to an increased demand for student housing.
With home prices and mortage rates at record lows, this is really great news for prospective landlords looking for income opportunities. In Columbus, home of Ohio State University, prices have come down 10% over the last 5 years, and worse in San Luis Obispo, CA, falling 31% since 2007.
That said, students present different challenges for landlords – they can be harder on apartments than the average resident, it is harder to tell if they are financially stable, and often parents and students have higher expectations for quality and amenities. But in today’s market these challenges are worth it!