Guelph & Wellington County is home to some fantastic colleges and a great university. Our region also has an incredibly low rental vacancy rate, which makes purchasing a student rental property an especially attractive investment opportunity.
The continued growth in the region has helped to make the area very appealing to students and, these days, students are staying in rental units beyond just one term — which results in stable, longer term income for the property owner.
Here are some tips on how to buy a student rental property:
1. Consider the location of the rental property.
Check out how close the property is to the university or different colleges. Most students walk, bike, or rely on public transportation to get to and from school.
Spend some time driving around the area where you are considering purchasing a rental property to see if there are students living in the area. If there are students in the neighbourhood, then you already know it is accessible.
Check out the neighbouring properties to see if they are being maintained. You want your property to be located in a safe and desirable area.
2. Consider the style of property.
Are you looking at housing one student, or a group of students? Depending on your answer, you may want to choose a different type of property.
If you want to purchase a condo unit, make sure that the property is suitable for students. Some condos are intended for older adults and may not have the amenities that will be attractive to students, like fitness facilities.
If you want to purchase a home, make sure that the property is in good shape and doesn’t need major repairs — you don’t want to get 2:00 am phone calls about the roof leaking.
3. Consider the return on investment that you are looking for.
Be sure that you have thoroughly examined your financial situation, so that you understand how much rental income you need to make the purchase worthwhile.
Consider the neighbourhood and be sure that your REALTOR® is able to advise you on what the homes and condos are selling for in the area. While there are no guarantees, you want to get a sense of whether you could lose money if you decide to sell your rental property in the future.