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Up-and-coming student markets offer cash flow

by Jennifer Paterson on 19 May 2015
As increasingly expensive properties in the hottest student markets whittle away at cash flow, experts are pointing investors in the direction of a few alternative student hotspots.

“[They offer] student populations and good cash flow, but the house prices are more in line with what can make it fly,” said Tim Collins, an investor who specializes in student rentals.

“In other cities, closer to the GTA, it is getting too difficult to make the numbers work.”

Alternative student rental markets in Ontario include Brantford, Niagara-on-the-Lake, Orillia, Peterborough, Welland and Windsor.

They’re distinct from many of those hot Ontario student rental markets, including Hamilton and London. Those two, in particular, have restrictions in place on how many students a landlord can house in a property, added investor Lee Strauss.

“Obviously, the more students in a house, the higher the cash flow for the investor,” he said.

“Some of these markets do have some grandfathering clauses, which allow houses that were operating as student rentals when the bylaw came in to remain as student rentals with higher than the allocated bylaw numbers. If you can find one of these gems in the right market you have a winner.”

Those student centres are often slightly outside the main campus hubbub.

Brantford has a few different satellite schools that have started to put down some roots and have been expanding quietly for a number of years now,” added Strauss.

“There are opportunities to be had in Brantford for student rentals, however, most of the properties need some work to get them up to standard. This could be a good area to look and invest in while it is still in its earlier years.”

Subscribe to CREW or pick up the latest issue on newsstands to find out more about Canada’s hot student rental market.

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