College apartment investment.

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Gr33n131

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Has anyone invested in a college /student specific apartment block ? Is this a good idea - lase to college /management company for academic year and have use of apt June July and August.... any pitfalls ?
 
Im interested in this topic too. I would like to invest in such a proposition potentially
 
The questions are pretty vague. The reason I didn't invest in this type of thing is that I'm not happy with the idea of handing control of renting to a management company in case they are not great, or that the profits to be got are reflected in the initial costs.

Any I looked at had summer lettings.

The advantages in such lets seemed to be in the fact that if your apartment was thrashed by the students you'd still get rent if it's done communally, which is what is done in the larger complexes.

Can either poster link to an actual potential purchase as I assume they all have their unique selling points.
 
Hello,

If the lease isn't directly to the college, but to a seperate entity, then you should not consider the risk to be the same as if you've leased the property directly to the college.

Imagine a scenario in a few years time, where the management company had to be liquidated, or wanted to break the terms of the lease.

Ask yourself, what other sources of rent would there be, if this went wrong.

Are there communal areas either in the apartment building, or wider complex, that you would need full time independent access to ? Would you be able to grant access to a new tenant to, to ask if there's areas, without issue?

What are the proposed management and service charges? What assurances you have (that you can truely rely on), that these charges won't spiral out of control, in years to come?

Who might want to buy this property from you, in years to come - are you really reliant on another investor buying it, or is there genuine appeal for an owner occupier?

This is not an investment that I'd feel drawn to, tbh.
 
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