One of the biggest lacks of housing around the world today is for college and university students. Why is this? Because:

• Most colleges and universities are in a budget squeeze, so there’s no money available to construct additional student housing on-campus.

• Many students think it’s “childish” to live on campus; they want to live in housing away from the school but close enough to walk to it - this is called off-campus housing.

• Living off campus broadens a student’s life experiences, preparing them more effectively for life after school.

• Off-campus living is relatively unsupervised, giving students a greater feeling of freedom - which they love.

• Colleges and universities are glad to recommend off-campus housing to students at NO cost to the student or property owner (you)¡ªyour advertising costs nothing!

• Property owners (you) can have a student’s lease guaranteed by the parents, meaning there’s much less risk of not being paid.

• Giving parents a small discount (5 percent) on the rent often results in the owner (you) being paid in advance for the rent, removing any worries of not being paid.

• With Internet access needed by all students today, you, as owner, have other revenue sources which can increase your income enormously.

• Many colleges and universities are located in small towns where housing prices have not yet “gone through the roof,” as people say; your acquisition (buying) cost is low.

• With more students staying in college longer, you will have a year-round demand for your housing because summer sessions are often almost as crowded as regular classes. (You can get a good idea of this stay-in-school mentality by remembering the modern definition of a “dropout.” It is: He or she only got their bachelor’s degree!) This definition tells you that today’s college graduate has to get at least a Master’s degree to get a good job. Anything less and you’ve dropped out!

• Older single-family homes suitable for off-campus student housing are often available at bargain prices in many college towns all over the world. This means you can get started quickly on little or no money. One reason why older single-family homes are available at bargain prices in small towns is because few people recognize the high income potential in student housing.

• Student room rents are higher than ever before. The actual rent you’ll receive depends on the section of the country you’re in. Rents of 5800 per month per student are typical in some areas. With 10 such rooms you’ll have an income of $96,000 per year, before expenses. In other areas the rent may be as high as $2,500 per month per student. Figure the income you’ll have with several such units!

• You don’t provide any personal services to students. They do their own laundry, make their beds, may supply their own furniture, and definitely buy their own food, which they cook. You’re just supplying a comfortable room!
“This all sounds good,” you say. “But what are the negatives of off-campus student housing?” Here are the negatives:

• Unless you live in a college or university town, you will have to buy housing at a distance from where you reside. 

• All students housing requires some kind of supervision. So, if you buy out-of-town houses, you won’t be a local resident. You’ll then have to hire a local manager to look after your properties and watch that the students behave while in the housing you own.

• Some students may have wild parties in your building unless you strictly enforce safety rules at all times.

Despite these few negatives, student housing can start to make you rich in real estate in just months. Here’s how to decide if off-campus student housing is for you:

• Look around the area in which you live to see if there are any colleges or universities. Don’t overlook junior colleges and technical institutes.

• List your local colleges and universities and their driving distance from where you reside.

• Visit each campus that interests you. Call on the Student Services or Student Housing Department and ask about the housing situation for students. In most schools, you’ll be told there’s an intense shortage of suitable (neat, clean, and within walking distance) housing.

• Look at local real estate near the schools where housing shortages exist. Get prices for multi-room - usually two- or three-story - single-family homes. You’ll often find that prices are in the $65,000 ‘ to $95,000 range for beautiful, turn-of-the-century, colonial-style homes. Students love older homes because such houses provide a home-like atmosphere with familiar rooms and other facilities.

• Make a drawing of the single-family home layout. See how many individual rooms you start with and can later create. Only one kitchen is needed because the students share the kitchen area. Try to find houses with as many bathrooms as possible - the more the better.

• Seek an architect to help you determine if the building could be conveniently converted to student housing. Such advice will usually cost you about S500, along with some basic sketch plans of the redesigned building. Your results will be well worth such help.

• Work out a price for the property based on going rents in the area. The college or university will provide you with this data. Compute your cash flow based on price, typical rent, and number of students you can house.

• Open your off-campus housing and get student renters, after hiring a local competent part-time manager. Some owners use a student to manage the building. Pay is in the form of reduced rent on the room the student occupies. Have your manager collect your rents regularly; you can then use the cash flow to buy more students housing in the same area.

• Get your house wired for the Internet in each room you rent. You can charge students S10 or $15 per month for each Internet connection. Your cost might be $30 per month for the entire house. You collect $100 to $150 per month extra income when you have 10 rooms in your house and a charge of $10 or $15 per month per room.

So if you want to earn $ 100,000+ per year in real estate, consider off-campus student housing. All you do is buy your first house and use the equity in it for your down payment on the second one. Soon you’ll be a student-housing wealth builder! Just keep expanding the number of houses you own as time passes.

Estimated time for your project; Find suitable house for student housing: 1 month; Negotiate sale: 2 weeks; Closing: 1 day; Home rehab to suit students: 1 month. Total estimated time: 3 months.