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The Best Cities to Invest in Student Housing in Canada - 2017 Edition

  In late 2015, Places4Students published one of our most widely circulated blogs, The Best Cities in Canada to Invest in Student Housing – Province by Province. Since then, the market has grown considerably as more purpose-built student housing has developed throughout Canada, inevitably changing the market landscape. We decided to revisit this topic and once again highlight some of the best cities in Canada to invest in student housing.   The methodology for determining the best cities was based on collecting CMHC data, college and university enrolment statistics, average real estate prices and other rental market data. Other criteria included student enrolment and projected growth, average rental rates, availability of on-campus housing, vacancy rates, number of academic institutions and more.*The following data reflects vacancy, average rental, turnover and availability rates from 2015 to 2016. The average rental rates are based on two bedroom apartments.   Ontario – Peterborough: Last year, Guelph held the number one spot. According to Alan Mason from TrilliumWest, the three key success factors for Guelph included: low vacancy rates, coupled with limited housing options for students, increased enrolment and an improving housing market. Although Guelph is still a top city for student housing investment this year, the number one spot goes to Peterborough. Peterborough has some very favourable rental market conditions:   ·       Vacancy rate dropped from 3.7% to 1.0% ·       Average rental rate (2 bedroom) rose from $959/month to $980/month ·       Turnover rate of 17.4% is the fourth lowest in Ontario ·       Availability rate dropped from 5.1% to 2.2% ·&n......
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Managing Student Housing Properties

Managing Student Housing Properties
There are some properties that just lend themselves to student housing. They are located close to a college, university, or vocational institution; offer a number of student-required amenities such as are filled with other students; and offer student-friendly rents. Apartment complexes or multifamily properties are more likely to become “known” as student-friendly, but it’s just as likely for single family rental homes to do the same. Regardless of the type of rental property you own or are considering for an investment, there are some pros and cons you need to consider: Pro: Demand is something many student designated properties hardly ever, if ever, have to worry about. With every semester comes a new wave of students in need of off-campus housing. As long the educational institution is near-by, the demand remains. Con: Turnover is the flipside of the demand coin. While students likely always be lined up to fill vacancies, high turnover is intrinsic to this market. It’s not only a pretty good bet that most tenants will only stay 9-12 months, and at most 2 or 3 years, there is also a higher rate of incidence with this group of skipping out early on a lease. Pro: Economics are another significant factor on the side of investors. Even with a steady decline in enrollment since 2009, there are still more than 19 million students attending colleges and universities nationwide.  And, the National Center for Education Statistics forecasts enrollment growth to increase to 24 million by 2022. Combine this knowledge with a rece......
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