How do you feel about renting to students?
Albuquerque is more than its abundant culture and beautiful landscapes. It’s also home to the state’s major educational institution: the University of New Mexico (UNM). The school attracts students from all over the country, and even international students make their way here to study.
This influx of students creates a profitable opportunity for landlords looking to invest in the student housing market.
As with all investments, you’ll need to be aware of the rewards as well as the risks.
We manage student housing for owners in Albuquerque, and we have a good sense of how to navigate the opportunities and the challenges.
Here’s what we can tell you.
Opportunities in the Albuquerque Student Housing Market
There is consistently high demand for student housing close to UNM and other educational institutions. This demand provides a steady income stream for landlords. You’ll always have students looking for housing options that offer convenience, safety, and affordability.
If you’re worried about the narrative of the “poor college student,” don’t be fooled. Properties that are well-maintained and feature amenities desired by students can actually bring in high rents. Proximity to the university, cafes, libraries, and public transport can add significant value to rental properties.
Challenges Facing Landlords with Student Housing in Albuquerque
Students typically rent on a semester-to-semester or annual basis, leading to higher turnover rates compared to traditional rentals. Be prepared for frequent tenant changes, which can include undertaking repairs and marketing the property more frequently.
That leads us to another challenge: seasonal vacancies. The student housing market is inherently seasonal. Demand peaks at the beginning of the academic year and drops during the summer months. You’ll need to account for these fluctuations in your financial planning.
Catering to a younger, less experienced tenant base means you could encounter issues ranging from delayed rent payments to property maintenance challenges. This is not always the case, and establishing clear communication channels and setting firm ground rules from the outset can help mitigate these issues.
Strategies for Success
Here’s what we recommend if you’ve decided you want to rent to students:
- Understand Your Student Tenants. Offering a property that meets the needs of your tenants can set you apart from the competition. This might mean offering furnished homes, including fast internet, or making flexible lease terms available.
- Build Relationships with Local Institutions. Establishing a good relationship with nearby educational institutions can provide a direct line to potential tenants. Many schools have housing boards or referral services that can direct students to your property.
- Leverage Technology. Utilize online property management tools and platforms to market your property, communicate with tenants, and manage financial transactions. A strong online presence can significantly enhance your property’s visibility to the student market.
The student housing market in Albuquerque presents a promising opportunity for anyone willing to understand and adapt to its nuances. By focusing on the unique needs of student tenants and overcoming the inherent challenges of the market, we believe landlords can tap into a lucrative and rewarding part of the market.
Working with a professional property manager in Albuquerque will always help you have a better experience. If you have questions about this, please contact us at Bruni Karr Agency.
