As I commented to a potential investor this past week -- investing in student rentals can offer a higher return than other non-student properties, but there are also higher risks associated with such an investment.  These include....

1. Unexpected Vacancies -- If you miss the leasing cycle, or if a student leaves after a semester you can come up short on rental income based on an unexpected vacancy of part of all of the rental property, which is usually not easily filled until the following school year.
    
2. Property Damage -- Not all college students party, but some do.  You are likely to have at least somewhat more property damage on a student rental property as compared to a non-student property.  This is a generalization, of course, as some college students take excellent care of the property they are renting.
    
3. Value Swings -- The graphic at the top of this post shows the wide swings in property values seen at Hunters Ridge over the past 14 years.  This is mostly a result of swings in the supply of student housing.  As large (regional or national) student housing developers come into Harrisonburg to build new large student communities, the supply of such housing increases, causing vacancy to increase in older communities and rental rates to decline -- which affect property values.

Again -- investing in student housing can provide a great return on your investment, but it comes with risks that you should full understand before you make an investment.

Learn more about investing at Hunters Ridge here.