Generally speaking, buying an investment property in a college town can be a wise investment. In downtown Lewisburg, this is even more so the case. Because of the proximity of the downtown to the college campus, many students who attend Bucknell University choose to live off-campus in their senior year. In some ways, this is the best of both worlds – students have the experience of living “on their own” in the real world yet they are just steps away from campus dining, athletic, and classroom facilities.
The housing market has been and continues to be strong in downtown Lewisburg. In addition, interest rates are low for qualified buyers. Many rental property owners can leverage the purchase by borrowing money to increase their return on investment.
Downtown Lewisburg rental properties have a lot of turnover, which is good for anyone renting a well-maintained and reasonably priced property.
The cost of BU’s tuition, room and board is $56,190 per year, and about 38% of families pay the full annual cost, without any financial aid. The reality is, many Bucknell parents and families have the monthly income needed to invest in a rental property off-campus.
We all know that the annual price for a college education isn’t just tuition. Of the $56,190 per year, $10,812 is room and board. Oftentimes, upperclass students can find off-campus housing for a comparable price ($900 per month or less).
In fact, some Bucknell parents of enlisted students are purchasing a home in downtown Lewisburg for the student to live in with roommates during the school year, then they resell the home after their son or daughter graduates.
Pitfalls of Being a Landlord
There are certainly some pitfalls to being a landlord, whether it’s in downtown Lewisburg or not – especially if the property is owned by someone who lives outside of the area. When a minor or major issue comes up, how ready and capable are you to deal with the situation quickly? This is an important question to consider.
In the case of property owners who reside outside of the area, it can be prudent to hire a property manager to take care of minor issues and ensure that the property is maintained appropriately each month.
It’s also common knowledge that college students, and renters in general, can be rough on a property, so minor drywall repair, painting, and new carpets can be expected after each year of continuous use.
There are also zoning ordinances in downtown Lewisburg that landlords need to be aware of, especially related to the number of students in a rental property.
There are also regulations and guidelines concerning where rental properties for students can be located.
At Bowen Agency, we are very accustomed to working with property owners and property managers in downtown Lewisburg and beyond. We have the appropriate contacts to guide you through the steps.
Just call us!