It is hard to believe that in just a few short weeks our kids will be heading back to school. Why do our summers go by so fast? This local college town, in which we live, will soon swarm with thousands of students moving into their dorms and apartments. Morgantown residency will almost double in size in just a short time. This is great for our economy supporting local businesses including retail stores, restaurants and hotels.
Parents will ascend into our town for a few days buying groceries and home goods for their kid’s apartments and dorms. We have several local landlords that have been prepping for weeks to get their apartments ready for these students. WVU is working hard to plan activities for the incoming freshman and upper class as well as keeping parents informed about move in and other events.
How does all of this affect our local real estate market? Being that this is a college town, many residents rely on rental income to support their livelihood. Competition is strong, but if you provide the renters with modern spaces that are clean and safe, you can be successful. If you are looking to invest, real estate can be very profitable.
Does it make sense to rent an apartment for four years or to buy an investment property? Some parents would rather spend their monies on a property they can own versus paying someone else’s mortgage. This type of ownership makes up a large portion of our market. What should you do if you decide to buy but live hundreds of miles away? Are you willing to drive into town for maintenance issues during all hours? Or should you hire a property management company to help you along the way? Ask your local REALTOR® for guidance. There are some good companies in town that have managed rentals for years.
What if you aren’t financially able to purchase currently? Is renting all that bad? Of course not. If you find a good landlord and a safe place for your child to live, then you should feel comfortable letting someone else handle maintenance issues. Ask your local REALTOR® for suggestions if you are in the market to rent, as they are familiar with the local landlords.
Whether you choose to rent an apartment or purchase an investment property, both options will require some financial planning. Many property management companies now require credit and background checks for potential renters. If the renter is a student, the parent or guardian may need to sign as a guarantor. If you choose to purchase an investment property, check with your mortgage lender as it may be wise to add your child to the loan to help them build credit.
If you are a townie, be patient over the next two weeks as people coming to our area don’t know our roads. Think of it as being on vacation in another town, it’s very similar to what we experience during move in week.
As I sit here on my vacation at the beach, I am reminded to be kind to others and to do good things!