STATE OF THE MARKET
The Columbus market in 2024 has been slower than the past few years, but still steady. We are seeing a shortage of inventory and pent up demand, largely because of higher interest rates.
With inflation easing and optimism of declining interest rates, we are hopeful the market will rebound the end of 2024 and into 2025.
-Partner Nick Stutzman
KIDS HEADING OFF TO COLLEGE BUT WHERE WILL THEY LIVE?
As rental shortages continue in college towns throughout the country, many parents are turning to a new alternative – buying properties themselves and then renting them out. “We’re seeing this undersupply of student housing throughout the country including the Southeast,” said Denienne Steele, Associate Attorney from GSH Attorneys. “There is a lack of housing to support the number of students starting and continuing school at many colleges. Unfortunately, traditional dorms and existing apartments can’t always accommodate these numbers. Parents are finding new ways to find a place for their student to live and at the same time making a worthwhile investment in real estate.”
Benefits of Buying Property in a College Town
In addition to providing a place to live for a child starting college, rental properties can provide a solid long-term investment. Here are several points to consider:
- The rental property provides a stable value since the College/University acts as an anchor to keep values strong and homes in college towns consistently go up in value because there is constant demand.
- If parents purchase a rental property while their child is in school for them to live in, there are good options for the property once they graduate. Many sell the property for a profit which can help offset the cost of tuition. Another option is continuing to keep the rental property for future renters and passive income.
- College towns will most likely maintain a high demand for short-term rentals because of the turnover of students from year to year.
- The purchase and then the rental income from students who pay rent will ideally cover the property expenses. And parents’ child gets to live with their friends.
There are some precautions you should take before and after buying a property to be used as a rental property, especially for college students
- Make sure the city and/or HOA does not limit or have restrictions on rental properties
- Be sure to consult with an attorney about the type of lease agreement you will use. Will the roommates, as a group, be responsible for the entire rental amount or will each roommate have their own lease?
- What happens if a roommate does not pay their rent or moves out/graduates early?
Other Considerations
Parents looking to make a purchase in a college town should pay attention to the legal and tax implications that might arise.
- Check with your accountant or financial planner to see if purchasing a college rental property would be beneficial to your specific situation.
- Learn how to best protect yourself and property if you are going to rent to students. There could be a higher risk of property damage and other issues when dealing with students as renters.
- Research other situations that could impact the benefits of purchasing in a college town including proximity to campus, noise, nightlife, and additional opportunities to rent to out-of-towners coming to campus for events such as football games, parents’ weekends, etc.
-Attorney Denienne Steele
HAPPY 10 YEARS!
Congratulations to Enrika Harris on her 10-year work anniversary! Enrika is our Landlord Tenant Legal Assistant who played a big role in helping brand us as one of the foremost contenders for Landlord Tenant representation. She was the first and only person supervising the practice in its initial stages for over 18 months and she continues to work hard at establishing relationships that keep the practice growing. Enrika, thank you for your hard work and commitment to the firm!
PROPERTY TAXES
It’s that time again! As of 9/23/24, these are the counties and cities where tax bills have been sent out so far. *This is not a comprehensive list. Please check with your local tax office.
