College Students & Property Values

College towns are starting to expand outward into surrounding communities, which sometimes worries homeowners. College towns mean college students---particularly undergraduate students---who are renting homes in the area, and possibly destroying them. College students are infamous for their inability to take care of things, which means that property values can plummet when rental properties are taken over by students.

If you live in the area surrounding a college town, you might have already noticed the changes. For example, according to City-Data.com, the number of renters in Huntsville, Texas (home to Sam Houston State University) has increased by 22% over the last five years. Rather than selling, home owners are renting out their houses to college students who don't want to live in dorms.

In many cases, this means unkempt front yards, peeling paint, wild foliage and exterior damage from young people who don't know how to take care of a home. Landlords might live in other cities (or even other states) and don't keep track of their tenants as closely as they should. So should you sell your home in a college town?

The reality is that a community is only as good as the neighbors make it, which means that residents in a college town must make an effort to maintain its aesthetic appeal. This might mean enlisting your home owner's association to help improve communication between the community and the college or university. If you decide not to sell your home in a college town, you will have to take some initiative to keep it looking nice.

Furthermore, it doesn't hurt to get to know students in your college town. Property values might start to plummet if students don't take care of the homes they rent, but you can help out by giving them tips on maintenance and repairs. Many college students have no concept of what goes into caring for a home, but you can assist them in that regard, then benefit from the results.

Unfortunately, property values tend to sink in college towns where most of the homes are rentals. If you attempt to sell your home, you might wind up with a below-market-value price. If you simply want to get out of the town, however, you can jump on the rental bandwagon and make more money by renting your home to college students.

If you decide to take this route, talk to other home owners in the area who have already rented their homes. Ask about contracts, interviewing, lease terms and anything else that might avoid future problems. You don't want college students to trash your home, even if it is "only a rental", so figure out a way to keep a close eye on your home while it is being leased by a college student.

It is also important to consider the fact that you might have a better opportunity to sell your home in a college town at a later date. The trend of baby boomers moving near their alma matters is increasing. Retirees are gravitating toward college towns to get involved with the colleges and universities on a volunteer basis. If you wait five or ten years, you might have the chance to sell your home for a higher price, thus making a profit. Leasing your home until that time is a viable option for you to consider.