Rental homes have always been a smart way to invest savings and put existing properties to good use. Of course, one of the keys to successful investment property ownership is knowing which regions and neighbourhoods are in an ideal position to have a high demand for rentals and a respectable average rental price for the area.
St. Catharines and the Niagara area are already a ripe rental market for investment. But what not every investor realizes is that the proximity of Brock University and Niagara College are incredible opportunities to invest in student housing.
St. Catharines is a bustling city, but when the holiday season rolls around after Fall semester exams, the whole Niagara area settles to become significantly quieter, and not just because everyone is indoors spending time with family. It's the fact that thousands of students who swell our population every year have headed home for the holidays. This speaks to just how many students attend Brock University and Niagara College, the impact they have on the local population, and the sheer number of rental homes are needed every semester to provide homes for students.
Thousands of Students in the Niagara Population
Niagara College alone is host to 9,000 students enrolled full-time this year, and that number doubles if you consider part-time students who have moved to Niagara to work their way through college.
Brock University provides an even higher number of students to our population, considering that over 19,000 students enrolled in the 2018/2019 school year.
Both campuses draw an incredible number of students and for property investors, the most important fact is the vast majority of these approximately 40,000 students is that most of them will be seeking apartments and houses for rent in Niagara during the 4+ years of their post-secondary attendance. There are student housing neighbourhoods in Thorold, Welland, St. Catharines and Niagara-on-the-Lake that are all ideal locations for these eager students to call home.
Investing in Student Housing
As you might have easily guessed, the properties that are most likely to draw that steady supply of student renters are those located closest to campus. A house close enough to campus will attract students who can walk or bicycle to class without worrying about cars and parking spots.
Houses that are most likely to attract students can range from smaller homes that are perfect in size for a single renter or couple on a budget, to multi-bedroom homes that can be split up between roommates. However, any student house located near campus is likely to have high competition in student-tenant applications every year. Some landlords can also source additional income by renting bedrooms or floors of a rental home separately to individual students.
Being a Student-Friendly Landlord
One of the most important things to note about investing in student housing rentals is that many students are spreading their wings as independent renters for the first time and are still learning everything they need to know to be great renters. Patience and coaching students to be good tenants is a smart approach when dealing with first-time renters. Having an online website, automatic payment portal, and some helpful resources can gently guide students toward being better tenants. With a great first-time landlord, students can learn to pay their rent and bills on time and to handle rental maintenance responsibilities with confidence.
You will also want a plan for roommate situations. Students often want to rent together, to sub-let and to add roommates over the course of a year-long lease. It's often smart to build yourself a policy with regard to subletting and to have each current resident sign a lease holding them to the house rules and responsibilities.
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The nearly 40,000 students who attend Niagara College and Brock University will always need rentals in the surrounding student housing neighbourhoods, and with a little forethought, you can turn this high demand into an incredibly reliable rental investment. Ready to start exploring investment opportunities in Niagara? Contact me to look review available houses for sale and to discuss your investment property plans.