Why more Philly college students may be renting in private homes

Philadelphia has been named one of the top cities for investors who want to own rental property in a college town, meaning that more private residences will enter the market as Philadelphia student rentals this year.

With a median price of $234,900 and average mortgage payments of $870, the potential for investors to make money on a rental that targets area college students is strong. Take into account that the average rent per bedroom in the city is $1,475, and you have what seems to be a sure win for a potential investor.

Philadelphia is also heralded as a strong market with general potential for real estate investment growth.

“Parents are investing in Philadelphia real estate, not only for cash flow but for potential appreciation,” said agent Timothy Garrity of Philly Urban Living. “Billions of public and private investment dollars over the last 20 years have really changed our downtown scene. This in turn has made student life better for the city, and has brought many outside investors to Philadelphia.”

So what does this mean if you are a student renting in Philadelphia? Should you be looking for a house to rent or sticking with an apartment rental on or off campus?

Here are a few things to consider:

Convenience – An apartment community is more likely to be close to your college campus.

Socializing – You’ll have many more opportunities to meet people and start new friendships in an apartment living situation.

Transportation – A commute to school will cut into your study time – is there easy access to campus by bus or SEPTA from your rental?

Cost – Renting a house or condo is likely to come at a higher cost than just renting an apartment, plus you have the added hassle of managing roommates, utilities, and other hassles that come along with a house.

What are your thoughts, Philadelphia students? Have you chosen to rent a home with roommates vs. an apartment? What do you see as the pros and cons of each option?