In the locality of every University and College in Toronto, Hamilton, Ottawa, London, Mississauga, and other cities in Ontario, they are built with surrounding living accommodations for Canadian and International students. With our Canadian Universities gaining increasing global popularity and credibility, the number of international students is going to continue to increase as well. Last year with over 1.2 million students attending university and over 300 000 international students, the universities and the colleges are going to need to keep developing new living accommodations for these students.
Last year with over 1.2 million students attending university and over 300 000 international students, the universities and the colleges are going to need to keep developing new living accommodations for these students.
With the increasing amount of students per year, it is a perfect time to start investing in student accommodations in condos. Some people are hesitant with entering the student housing market because of the risk of students throwing parties, trashing the house, break utilities etc. Although these incidents can occur, with a thorough interview with prospective renters, you can filter through to get the right tenants.
When renting a home to a family with 4 bedrooms, you will be charging roughly $1750 a month. However in the student houses, they pay as individuals for a room and they share the kitchen and living room. With 4 student tenants you will be able to charge them $600 a month ($2400/month). When a family is a tenant and late on payment or is missing payment, it is hard to recoup your losses. However when there are 4 tenants, if one is late or missing payments, it is easier to withstand the loss. Also with student renters there are less risks in obtaining your payment for rent, because with student rentals you can get the parents to be the guarantor with the lease. Instead of going through a court system with a family, you can call the guarantor for the student and get your rent money.
With the increasing student population from within Canada and the continuous international surge of students, the private sector for investing in student homes is a perfect investment in the university/college areas. With more condos being built around Canadian Universities such as: Western University (London, ON), Ottawa University (Ottawa, ON), University of Toronto (Toronto, ON) and others now is the time to be a part of the student housing market. With the initial down payment of a house/condo being approximately 25% investors will see a return to their down payment in a couple of years. Why not have students paying off a mortgage on an investment?