Student housing rentals may have looked like a rock solid investment before the Corona Virus, but as COVID-19 takes its toll on college campuses, students and college administrators are reluctant for a return to normal, with many higher education institutions opting for an online education option or a shortened semester.
Philadelphia is a city rich with college tradition and world class education 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 in the fall. 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.
Here is an update from Temple University President Richard M. Englert regarding the University’s Fall 2020 semester:
“Like many other universities, we will start the fall semester at its scheduled time and end the on-campus presence at the end of the day on Friday, Nov. 20. This is at the point when fall break would start, just before Thanksgiving. Rather than send everyone home and bring them back, it would be best to end the campus presence early to reduce public health risks. The remaining week of classes, study period and finals would then be conducted remotely.”
More info can be found here: https://news.temple.edu/announcements/2020-06-02/update-plans-fall
Let’s face it, college students can be rough on rentals. Student rentals can cause many headaches with various plumbing, electrical and even rodent and insect issues. With universities planning on shortening semesters and just overall having students on campus for less time, this is going to cause massive problems for owners of student housing rentals in a city like Philadelphia. Owners may be wondering if it is worth the headaches and students may be considering options like commuting or taking classes online. The culmination of all these things may have investors considering selling their rental as fast as possible to avoid possibly losing rents, having to change the way leases are written, or trying to work around the “new normal” that COVID-19 seems to be bringing with it.
Part of the attraction for college students to the city of Philadelphia is the nightlife, the restaurants, the cultural opportunities and of course the sporting events (Go Birds!). As I write this blog, Philadelphia is currently in the “yellow phase” under Governor Wolf’s guidelines for opening businesses back up, which means that many of the aforementioned extracurricular activities are currently not completely open. We are facing the real possibility of not having a 2020 MLB baseball season and many other concerts and festivals are being postponed or cancelled. All these factors may convince students to take a semester off, a year off, or just attend classes online. If they can’t get the “college experience” they were hoping for, then many may not want to pay rent to live near school. Even in great neighborhoods like University City which has traditionally held Drexel and Penn students, there is much uncertainty on how the universities are going to be able to manage students coming in from other states as well as many international students that may be travelling back and forth to countries with high COVID-19 rates. This is just another reason why selling is a great option right now.
Here is a YouTube video from a great site called Bigger Pockets, notice his first two points: 1. High demand for student rentals and 2. Universities can’t supply enough housing.
Right off the bat, you can tell that these two key factors can be affected by the Corona Virus pandemic because there will be less demand for student rentals this upcoming year and therefore Universities will be able to supply enough housing. Realistically, until there is a vaccine for COVID-19, universities are going to be doing things much differently than in the past.
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. A company that understands the market and is able to navigate during these tough times is a priority.
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.