Investors across the country have taken note of student cities and have begun purchasing condos and renting them to students. With the number of enrolled students across Canada on the rise and the cost of an education reaching new heights, investors should definitely consider this strategy of entering the student condo market.
Since 2000, the number of enrolled students across Canada has grown by 44%, reaching more than a million, according to the Association of Universities and Colleges of Canada. The cost of an education in Canada is also on the rise. Investors catering to this market are aware that they are renting not to the poor student, but effectively, to their wealthy parents. These are parents who are more and more prepared to pay a premium to ensure that nothing gets in the way of their children’s education. In fact, the key to building a profitable and manageable student-housing portfolio lies at the high end of the student condo market. These property types are a great option to both student and their parents for a number of reasons.
Student condos and purpose-built apartment buildings have cameras in all common areas, as well as onsite staff, which gives parents peace of mind. They also have security systems to control entry, as well as 24/7 video monitoring that protects the premises.
Professional Property Management
Managing 18 and 19-year-olds who are enjoying their first taste of freedom can give Landlords a headache worse than a morning-after hangover. But you can eliminate this burden by having a professional property management firm handle your rental property on your behalf.
All the maintenance is handled by the condo, including snow removal, gardening, and cleaning common areas.
Preferred by the City
Condos are a preferred structure for municipalities. Compared to illegal rooming houses, this structure ensures the building isn’t at risk of being shut down.
Condos typically have fewer rooms than student houses. Fewer rooms mean fewer students per unit and a lower chance that damage and Tenant issues will arise. Condos are more desirable than larger houses with more distractions.
Pre-construction condos are one of the best ways to invest in the student condo market. Purchased several years before students apply to schools, investors aren’t competing with parents on resale properties. They often come with full rental guarantees and free or low-cost property management, making them a hands-off investment option.