Location, Location, Location! Your realtor should work with you to determine the ideal locations for rentals to appeal to students.
What does that mean for potential investors? It is never too soon to invest in homes in Flagstaff and rent them out to students. The number of students in need of housing is growing every year, with more than 21,000 students enrolled at NAU’s Flagstaff Mountain Campus. The off-campus apartments are not ideal for every student. Did you know that the student housing complexes have 11-12 month leases from August to July? The lease terms are a deterring factor for students who have summer plans in their hometowns, internships or summer study abroad. With the flexibility of rental homes, 10-month leases are a possibility and become highly desirable. Worried about not being able to fill the two-month gap? Worry not! There are plenty of students who come into town early or come to Flagstaff for their summer work opportunities.
What can you make from an investment home? In the past, it was common to rent out an apartment or home in its entirety. However, that is no longer the case in Flagstaff. The common leasing strategy in Flagstaff student housing complexes is to lease by the bedroom. The monthly cost varies, based on amenities, room size, private/shared bathroom, etc. On average, the least expensive option for base rent per person is $850/month. If you think that is high, that average monthly rent does not include additional costs for utilities, parking, pet rent, renter’s insurance and more.
What’s important when looking for an investment property? In your search for an investment property, it is important to work with a realtor who understands the Flagstaff area and housing market.
Location, Location, Location! Your realtor should work with you to determine the ideal locations for rentals to appeal to students. Can you walk to campus? Does it have access to public transportation? Is it a short driving distance from campus?
Rental Restrictions. In many Homeowner Associations, rental restrictions are being implemented for 30-day or more minimum leases. While this knocks out many short-term rental prospective buyers, it opens opportunities for investors interested in renting monthly. Your realtor should provide you information about HOA rules, regulations and restrictions. FBN
By Alana Bateman