When it comes to clients who are interested in investing in real estate properties, college towns can be a lucrative location. There are some inherent risks associated with college town real estate investments, like heavier wear and tear on properties and a constant flux of tenants. However, every investment comes with at least a few potential drawbacks, and college real estate properties also offer a lot of potential rewards.

To attract your investment clients toward the concept of investing in college town real estate, you’ll need to make sure that they’re familiar with the many benefits they can expect to enjoy. It’s becoming a trend all over the country for parents of college-age children to purchase property for their child(ren) to reside in throughout the duration of their college career.

The cost associated with college dorm rooms and apartment rentals keeps rising every year. Some parents are wising up and using the money they would’ve spent on-campus housing to purchase a home or condo nearby. While their children are of college age, parents have them live in the home and attend classes. After college, the home becomes a rental property for other college students, generating money for the owner each month.

Some of the most noted benefits of making an investment in a college town include:

• Guaranteed market – Owning property in a college town, preferably as close to campus as possible, means that there will always be a captive market of people looking to rent. Unless the college closes its doors (highly unlikely), there will literally never be a lack of tenants. Also, although it can feel risky to rent to college students, it’s important to remember that their parents are almost always paying their rent. Naturally, those parents know that their credit rating can go down the drain if they miss any rent payments.

• Word of mouth – While property owners will still want to put some effort into advertising their property, good rentals in college towns generate a lot of chatter. The same goes for fair and pleasant property owners, or “landlords.” In short: garnering a solid reputation with the students will guarantee a rental income every year.

• High rents are status quo – College towns are infamous for high rents, so investors will have a good chance of making a return on investment much more quickly than in a non-college area. Another rent perk: consider charging on a per-student basis rather than a flat monthly rate, boosting profits up even higher.

• Generate money immediately – If your client plans to purchase a college town property for their own son or daughter(s) to reside in, they obviously won’t be charging him or her rent. However, just about every college-age student wants the experience of college roommates, who will definitely pay rent!

Whether your investment clients have children or not, purchasing a home in a college town can be a very lucrative decision. There are far more rewards than risks when it comes to buying a college rental property. Allay any fears your clients may have about investing in a college town. A constant stream of new students combined with college professors and other college employees means that you’ll always have a large pool of tenants to choose from.