Real Estate

Worth investing into student housing?

  • Last Updated:
  • Sep 16th, 2021 3:21 pm
[OP]
Sr. Member
May 10, 2017
607 posts
429 upvotes

Worth investing into student housing?

With some students still doing online learning and some students coming back to campus, would it be a good idea to invest into condo nearby university campus for student rental?
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9 replies
Deal Fanatic
Mar 27, 2004
7334 posts
5296 upvotes
Toronto
DirtPoor wrote: With some students still doing online learning and some students coming back to campus, would it be a good idea to invest into condo nearby university campus for student rental?
pretty much every condo sold by cc is using ryerson as the reason to invest
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[OP]
Sr. Member
May 10, 2017
607 posts
429 upvotes
Thanks for the replies.
I’m considering whether to go for that or just an ordinary residential place away from school to rent to and hire a property manager
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Sr. Member
Jul 4, 2018
509 posts
448 upvotes
Student rentals are pure investor products

Residential products are both investor and end users

End users buy with heart and carry emotion
Investors buy with brain and carry calculators

Numbers matter for investors and so these specific. Products are purely based on rental growth

End users increase the product value of residential products apart from rental growth.
Member
Dec 3, 2019
473 posts
432 upvotes
Ontario
I have rented to students for 5 years and do not recommend it.

I have found that monthly rent paid by students is about the same as long-term tenants.
However the amount of work is much greater due to turnover plus it is seasonal with the school year.

Only if you get a large house with a high number of bedrooms would I see it be worth it.
Deal Fanatic
Feb 4, 2010
6389 posts
5756 upvotes
buysellbuy wrote: I have rented to students for 5 years and do not recommend it.

I have found that monthly rent paid by students is about the same as long-term tenants.
However the amount of work is much greater due to turnover plus it is seasonal with the school year.

Only if you get a large house with a high number of bedrooms would I see it be worth it.
Do you find the damage/ maintenance higher with student rentals? I'm assuming there's more drama associated as well ...e.g., housemates not getting along, etc.?

I would also imagine that it would be harder to rent out in the summer depending on which city you're in (downtown Toronto excluded)...e.g., London, Waterloo
Member
Dec 3, 2019
473 posts
432 upvotes
Ontario
I was very picky in selecting students. I would price each room low so to get maybe 5 candidates for 1 spot.

I would try to interview students for at least 1/2 hour to get a sense of personality. Interview is the most valuable tool in selecting renters.

I would also take a damage and cleaning deposit.

I had no major issues or damage.
Sr. Member
Oct 11, 2016
949 posts
412 upvotes
buysellbuy wrote: I have rented to students for 5 years and do not recommend it.

I have found that monthly rent paid by students is about the same as long-term tenants.
However the amount of work is much greater due to turnover plus it is seasonal with the school year.

Only if you get a large house with a high number of bedrooms would I see it be worth it.
THIS!!!! +++1

I completely agree. I admit it - I got sucked into a student condo development. One of the worst investment decisions I ever made. The builder's marketing materials and projected financials ended up being a total scam....but my mistake. I should have known better. My instincts told me these numbers didn't match, but I was so hell bent on investing and getting into the market, I ignored it. Live and learn. No excuses. I messed up. I dumped the investment and even took a little loss....sure I could have held, gone cash flow negative a bit, and it probably would have appreciated (records show it did eventually appreciate with the boom before the pandemic.) Personally it was tough to handle while being out of town...so for my mental fitness it was worth it to sell and exit. The value would have also taken a hit during the pandemic so whatever.

Never again.
Last edited by yydd4567 on Sep 16th, 2021 4:00 pm, edited 1 time in total.

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