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Investments: What to take into account before buying an apartment to rent to students - La Nacion Propiedades
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Inversiones: lo que hay que tener en cuenta antes de comprar un departamento para alquilar a estudiantes
Una mayor rentabilidad frente a los alquileres tradicionales mueven la balanza a favor de este tipo de contratos; las zonas clave y los requerimientos para invertir en una unidad pensada para albergar a estudiantes
www.lanacion.com.ar
February 20, 2024
Greater profitability compared to traditional rentals moves the balance in favor of this type of contracts; the key areas and requirements to invest in a unit designed to house students
By Silvina Vitale
To buy and then rent an apartment to students, it is necessary to take into account the location and equipment of the property
Students are usually a large and dynamic audience in the city of Buenos Aires, many come from the interior of the country to pursue university or postgraduate courses, many others come from neighboring countries and the rest of Latin America, mainly. In this context, having an apartment to rent to this target can be a good investment.
When purchasing a unit for young people who are training, it is necessary to know some aspects. One of the most important is the location , in that sense, the most sought after areas of the city are those close to the main universities. According to Agustín Walger, director of Lepore Propiedades, when looking for a rental for a student the central point is the proximity to the house of study to avoid having to make long trips to attend classes.
Students from the University of Palermo drive demand in that neighborhood
In this sense, he lists: “The corridor of Independencia and San Juan avenues reacts very well with the Universidad Argentina de la Empresa (UADE), the Universidad Abierta Interamericana (UAI), the Psychology headquarters of the UBA, which would be the neighborhoods of San Cristóbal , San Nicolás and Balvanera” . For this last neighborhood, Lepore has two completed buildings, with apartments between one and four rooms, with units starting at US$ 1,700 per m².
For his part, Miguel Ludmer -director of Interwin- adds to the list the projects located in Palermo given the proximity to the University of Palermo (UP) and the Children's Hospital that attracts students from Design and Medicine majors. For example, he highlights that the MIT Bulnes project, in Bulnes between Cabrera and Córdoba Avenue, meters from the UP, registered a great demand from this public motivated by the proximity to these places. In this case, tickets start at US$77,125 in the case of studio apartments and an initial square meter of US$2000.
The project being built in Bulnes and Cabrera
The areas surrounding the universities also work
On the other hand, Almagro and Villa Crespo are other interesting alternatives promoted by UP students). The good news is that these neighborhoods do not require paying the values of Palermo or Recoleta. Walger explains that universities such as UP or the University of Belgrano (UB), located in Palermo and Belgrano , or the University of Buenos Aires (UBA) – with faculties distributed in Recoleta, Barrio Norte, Balvanera, Belgrano, San Cristóbal, Caballito, etc. -, they also end up pulling the surrounding areas.For Walger, the positive thing is that it was possible to decentralize temporary rentals in Palermo, Recoleta or Belgrano , which have a significant aspirational demand and, in addition, are highly sought after by tourists.
The UBA Faculty of Medicine in front of Plaza Houssay generates interest even in the Once and Abasto area
Likewise, Siebenhaar, owner of Nativa Soluciones Inmobiliarias, considers that Recoleta and Barrio Norte are always the best option due to proximity and connectivity . Although he recognizes that Monserrat is very profitable due to its proximity to the UADE, the Favaloro Foundation and the UAI, as well as Almagro due to the University Institute of the Italian Hospital, the National Technological University (UTN) and the faculties of Social Sciences and Psychology of the UBA. “In all cases, good communication with means of transport must also be taken into account,” says Siebenhaar.
When analyzing what to take into account, specialists affirm that the temporary rental modality for students implies that its cost includes expenses and expenses for services such as water, electricity and gas - these two with a spending limit -, in addition to television cable, internet and taxes.
Regarding rent, Rizzo, from Alternativa Propiedades, details that in his case he handles contracts ranging from one month to one year with a return that he estimates to be in the order of 4% to 7% per year in dollars , which varies depending on the department and area. With the repeal of the rental law, the duration of a contract will be the one agreed upon by the parties, which, in the case of students, will be one year or the duration of their course (March to December), with the possibility of making a temporary rental. in the months that is available. The apartments that are rented are furnished and equipped.
The vicinity of the Universities of Medicine, Dentistry and Economics of the UBA
Vanina, owner of Palermo, is beginning to paint and refurbish her three-room apartment to offer it for rent again, after 12 years of hosting students from the interior: “First a group of friends came and rented it for several years, then As they were received, they left and their cousins or younger brothers arrived. Last December they left the apartment so I am putting it in condition to rent again.”
Ludmer shares an example of the buildings he sells located on Mario Bravo and Cabrera. “Temporary rent is between US$35 and US$45 per night,” she says. The demand for this type of units is palpable, since the building is almost all sold and only two units remain - one with two rooms and one with three - looking for an owner.
The building located right next to the UP that Interwin sells
How to furnish and equip it is key
One point to keep in mind is that they are delivered furnished and equipped , so the person moves in only with a suitcase, their clothes and their personal effects. For Rizzo, something to consider is that the apartments have as many rooms as possible and single beds , since students often get together to rent. “An apartment with a large living room and only one bedroom is not convenient. The ideal is an apartment of a few meters but many rooms. For example, a three-room apartment with two small bedrooms, a small living room and that also pays low bills for utilities (gas, electricity etc.), ”she clarifies.At the same time, he explains that since students do not usually have a large budget, it is preferable to opt for a small, affordable apartment . “Then, in any case, furnish and decorate it in such a way that it follows the trends of this market,” says Rizzo.
On the other hand, it places special emphasis on the equipment of these units. You have to furnish it in the right way. Many times, people use a piece of furniture they have from a relative or from what was left from the summer house and that is a serious mistake.
A temporary apartment is not only worth its location or condition, but also its furniture and decoration. “If you have a brand new apartment in the best area of Palermo and you put in the furniture that was left over from your grandmother, we will not be able to rent it properly or at the price that could be rented,” warns the specialist. And he emphasizes that the furniture always has to match the apartment where it is located, in addition to being functional, resistant and washable .
The furniture always has to match the apartment where it is located, in addition to being functional, resistant and washable
Another mistake that is made is putting too few beds . Sometimes in two-room apartments, “the owners leave one with beds and make the other an office. This should not be like that. We must put as many places as possible in the unit ”, he assures. And he highlights that one of the points that matter for this audience is whether the building in question has parking for bicycles and direct access to a bike path.
In short, those people who decide to invest in renting to students must take into account not only a good location, accessibility, but also the environments and amenities, focusing on the practical use that will be given to the apartment. This type of rental is among the most attractive due to the higher profitability obtained, in addition to short and more flexible contracts.
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