When to Sell Student Accommodation in Philadelphia

a drexel university sign over a street in philadelphia

Student housing rentals may have looked like a rock-solid investment before the Coronavirus pandemic. But, with many higher education institutions opting for an online education option, is student housing investment still worthwhile? And is now a good time to sell?

Philadelphia is a city rich with college tradition and world-class educational opportunities. Universities such as the University of Pennsylvania, Drexel University, and Temple University attract students from all over the world, with many of them turning to at least partial online education.

With all this uncertainty, it may seem like a good time to look for companies that buy houses in Philadelphia. If you are trying to sell your student housing rental fast, it is important to find a company with knowledge of the market and the ability to help you get the best deal, even if the home needs repairs.

But is now the best time to sell? Keep reading to learn when to sell student accommodation in Philadelphia.

When to Sell Student Housing in Philadelphia

a student housing building

Anytime is a good time to sell student housing in Philadelphia. According to Campus Advantage, the best time to sell a student rental is after three years, or when the property is no longer experiencing a significant rental growth rate.

In their white paper on Selling Student Rentals, they advise, “In holding student housing properties for three years or more, your investment should be suited for long-term capital growth. If a property is no longer experiencing significant rental rate growth, waiting longer than needed to sell the property will simply lose you money”.

In practical terms, the best time to sell student housing is when the leases of current students and tenants come to an end, at the end of the college year. This is usually in summer, around late June. Doing this will avoid breaches in leases, ending tenancies early, and disruption to students.

When selling student rentals, or any property, it’s important to get your affairs in order early to avoid voids in the property. For student rentals, you’ll want to start the selling process early to avoid losing out on rental income while the property is up for sale.

When selling with a real estate agent, you should start the selling process around January. This is because, according to Zillow, it takes around six months on average to sell a house. Because student rentals tend to be larger properties targeting commercial investors, you may need longer to sell it on time.

The fastest way to sell a student accommodation building is to sell via a real estate investor for cash. An investor can get your property sold in a matter of days. At Brotherly Love Real Estate, we buy properties for cash in Philadelphia. We work quickly to get you an offer that makes sense for your property. Our team specializes in win-win situations for homeowners because we buy as-is.

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Is Student Housing Investment a Good Idea in Philadelphia?

In short, yes, investing in student rentals in Philadelphia can be a great choice. According to Unilodgers, student homes in Philadelphia tend to go for $800 per month per room, on average. In a six-bedroom property, this can lead to an income of $4,800 per month alone, not including other annual charges.

Additionally, student accommodation is in high demand. Universities themselves can’t supply enough housing for all students, which is why it’s important the private market is well-stimulated and offers suitable rooms at the right price. Learn more in the YouTube video by Bigger Pockets.

However, investing in student housing comes at a price. College students can be rough on rentals. Student rentals can come with various plumbing, electrical, and even rodent/insect issues. With universities having students on campus for less time (after the introduction of virtual lectures), this can also cause massive problems for owners of student housing rentals in a city like Philadelphia.

two students holding boxes outside a student house

Looking to Sell a Student Rental Fast?

Selling a student rental accommodation should be done at the right time. It’s important to plan the selling process early if you want to avoid missed payments and disruptions to students.

If all these factors have you considering selling your student housing rental fast and as is, it’s important to find a local company that you can trust.

Thinking of selling your student rental in Philadelphia? Curious how much your property is worth after riding the appreciation of successful universities? Call Brotherly Love Real Estate at (215) 326-9208 to receive a free, no-obligation valuation of your student housing property.