investment in student residences has been on the rise in recent years. More and more individuals tend to invest in this booming sector. It must be said that this form of rental offers many opportunities to investors. It allows them, in fact, to grow their capital and to have a lasting heritage to ensure their retirement. Each year, many students are looking for studios or apartments for comfortable accommodation. Thus, demand is clearly greater than supply, which is an asset for investors.
Strong demand for student residences
Because of its attractiveness is attracting more and more students. Currently, the number of local students is over 2.4 million. If we add the number of foreign students, we will realize that this elite is strongly present on French soil. Indeed, the number of universities continues to grow throughout France. This rush will inevitably have an impact on the demand for housing.
This, therefore, constitutes a good motivation for your investment in a student residence. The profitability of this kind of placement lies in the fact that the students rent for a relatively short period (3 months to 1 year). Thus, they target furnished apartments for comfortable accommodation.
A secure investment
The profitability of this kind of investment lies in the fact that students are known to be good payers. In traditional rental, landlords often have to deal with tenants who owe them arrears. In the case of student residences, we see that 1% of tenants are bad payers.
What motivates investors who will see in this investment a secure investment. Thus, these lessons will be able to easily choose their tenants, taking into account of course the environment in which the rental property is located. This process will then allow them to assess the creditworthiness of the students to whom they rent their apartments.