Investors have a long love for student rentals. One of the primary reasons is student rentals are recession-proof. Another reason is with strict rent control in Ontario, a tenant’s rent doesn’t keep up with the market rate. This is great for tenants but horrible for landlords. Not only is cash flow an issue with low rents, but a tenanted property with below-market rents is difficult to resale.
Students, on the other hand, have a higher turnover every 1 to 3 years allowing the landlord to increase rates above the rate control rate during turnovers. You usually can get parents to guarantee the rent, so rent is usually easily collected. Sometimes students will throw parties, and the toilets may not be cleaned during the stay of their term, but these are typically not costly items for owners to take care of on change over. Not all university towns are equal in their investment potential.
What makes a great University town for student rental?
- Low Vacancy Rate
- Reasonable Housing Prices
- High Rents
- Number of Students
Here are our 5 top picks of University towns:
Guelph
- University: University of Guelph
Full-time Undergraduates: 23,100 total enrolment - Number of on-campus housing: Approximately 5,000
- Vacancy Rate in Guelph: 1.9
- Medium housing price: 825,000
- Approximate off-campus Rent: 1bd apartment $1,950, room $700
About Guelph:
Guelph is strategically situated between some of Southwestern Ontario’s principal economic centres, including Toronto, Waterloo, and Hamilton, and offers the ideal fusion of city and small-town living away from the bustle of big cities. It has a low crime rate and affordable cost of living. Guelph, which has one of the highest employment rates in the nation, is a centre of expanding economic activity. The city enjoys a low cost of living and a less than 2% unemployment rate. Guelph is a fantastic area to invest in real estate based on the affordability index. Guelph is a superb option to consider, whether you’re a parent, a student of UOG, or an investor. The university is recognized for its agricultural and veterinarian programs.
To learn about the best neighbourhoods to invest in Guelph, click here.
Waterloo
University – University of Waterloo & Sir Wilfred Laurier
- Full-time Undergraduates: 35,200
- Number of on-campus housing: 5,724
- Vacancy Rate in Waterloo: 2.0
- Medium housing price: 825,000
- Approximate off-campus Rent: 1bd apartment $1,839, room $650
About Waterloo:
Waterloo is one of three cities in the Waterloo Regional Municipality. It is close to other large cities; Hamilton, Mississauga, London, and Toronto are all located in the eastern region and within one hour and fifteen minutes of each other. Waterloo is an urban hub for technology. The city draws students and intellectuals from all over the world since it is home to BlackBerry and two of Canada’s top universities, Wilfrid Laurier University and the University of Waterloo. Waterloo is an excellent area to live and work with a healthy mix of open space and a bustling downtown. The city boasts one of the lowest crime rates in the province, making it a safe place to live. Waterloo has not only reasonable housing prices but also hosts many fantastic cultural events and festivals.
A vacancy of 3 to 5% is considered a healthy rental market. A vacancy of 2 or under is considered a very low vacancy. All five of the selected cities have a vacancy rate of 2 or less. This means rental units are in short supply, so not only are they easy to rent, but you also can command higher rents and be more selective on the tenants you accept.
Want more advice on how to invest in real estate successfully? Here are some resources to help:
- Growing Your Wealth Through Real Estate Even in a Recession
- A Complete Guide to Real Estate Investing in Guelph
- How An Experienced Guelph Real Estate Team Can Help With Your Investments
St. Catherines
University: Brock University
- Full-time Undergraduates: 15,400
- Number of on-campus housing: 2,800
- Vacancy Rate in St. Catherines: 1.8
- Medium housing price: $627,500
- Approximate off-campus Rent: 1bd apartment $1,451, room $600
About St. Catherines:
The largest city in Canada’s Niagara Region, St. Catharines, is economically and culturally growing. From Toronto in the east, the town is just an hour and a half or 70 miles distant. The distance between Niagara Falls and the US border is about 20 to 30 minutes or 12 miles to the west. In Ontario, the Niagara Peninsula has the most vineyards.
St. Catharines is a centre for wine tasting tours with more than 50 wineries within a 30-minute drive, with some inside the city.
The Garden City, as it is known, is also a lovely place to live, with plenty of parks, green areas, and properties covered with trees. Three main beaches, 50 golf courses, and fantastic locations to enjoy the sun are all nearby. Additionally, the Green Ribbon Trail provides chances for kayaking and canoeing. Projections made by the municipality, the population of the Niagara region will increase from its current level of 447,888 to 610,000 by 2041.
Are you new to real estate investing or have been out of the game for a while? Here are some resources to ease you back into the market:
- Can You Buy or Sell a Home Using an App?
- How to Generate Passive Income From Your Primary Residence
- Straight Talk About Second Mortgages and Refinancing
Peterborough
University: Trent University
- Full-time Undergraduates: 9,800
- Number of on-campus housing: 3,000
- Vacancy Rate in Peterborough: 1.0
- Medium housing price: $600,000
- Approximate off-campus Rent: 1bd apartment $1,534, room $650
About Peterborough:
The City of Peterborough, which serves as the principal center for business, education, culture, and health care in the Kawarthas, is regarded as the region’s core. This area is diverse; it is both a university and college town and a retirement community. Peterborough is roughly 270 kilometres southwest of Ottawa and 125 kilometres east of Toronto. Peterborough & the Kawarthas offers a unique blend of urban conveniences, lakeside cottage relaxation, and farm living. The city is home to several parks and trails, and cottage country with its lakes and natural beauty is nearby and easily accessible. It provides a healthy way of life, a burgeoning entrepreneurial community, a trendy downtown, and an event calendar chock full of fun activities. Peterborough is anything from an ordinary city.
London.
University: Western University
- Full-time Undergraduates: 33,000
- Number of on-campus housing: 5,831
- Vacancy Rate in London: 1.8
- Median housing price: $675,000
- Approximate off-campus Rent:: 1bd apartment $1,678, room $650
About London:
Just north of Lake Erie and the American border, in southwest Ontario, is the city of London. Home of the University of Western Ontario. London is conveniently situated along a highway between Toronto and the US border. The London Transportation system will have you covered for transit throughout the city, and travelling outside the city is easy because of the availability via train and an international airport.
Small town feel with big city conveniences; the best of both worlds. There is something for everyone in London, from its bustling downtown to tranquil parks and neighbourhoods. There is something for everyone there, as evidenced by the plethora of entertainment, activities, arts and culture, parks, nightlife, and dining options. London’s economic scene is the best destination for startups, small firms, and influential organizations since it offers many business opportunities.
Great schools and state-of-the-art healthcare facilities are available. Fanshawe College, Western University, and a collection of hospitals, including University Hospital-London Health Sciences Centre, are all located in London.
Bonus
Due to the smaller number of students, Brantford did not meet the top five university towns to invest in. However, it is definitely worth looking at.
Brantford
University: Laurier
- Full-time Undergraduates: 3,000
- Number of on-campus housing: 595
- Vacancy Rate in Brantford: 1,9
- Median housing price: $660,000
- Approximate off-campus Rent: 1bd apartment $1,549, room $650
About Brantford
Brantford is situated halfway between Woodstock and Hamilton on the Grand River in southwestern Ontario. Found there are various social events, tourist attractions, and services. It has a transportation system that is both economical and accessible, a range of educational opportunities, as well as exciting and diverse industries. The first telephone was created by Alexander Graham Bell in this small, developing town, which is also where Wayne Gretzky was born.
For more information on investment properties:
Will real estate protect you against inflation
Should You Buy An Investment Property In Guelph? | The GoWylde Team
