How does the market look now for buying and rather renting? In the past, I couldn't make the numbers work.

However, I recently heard from a current student. Her rent was going up from $500 to $800. She went to look at a new place that was charging about $1k/mo per room. Both places are really nice. Both places have some for sale the the numbers would work.

I find it hard to believe you can charge $1k/mo, and if you could, how does that place sell for less than $550k? Has the market finally reached a good level out there?

Thanks for the help.

Be curious to see if anyone else can report the same but I haven't seen anything like that.

My last lease was a month ago. 1250 sq/ft starter, south CS. Had to drop rent from $1345 to $1275 to get much interest.

My brother lives in a 4 bedroom house in south college station and pays like $500/month per room.

I dont know where this student is finding 1k per room, unless its a new apartment complex and a 1 bedroom apartment.

That increase wasn't what were were seeing with a house close to campus that is walkable, bike able and on the bus route. We saw flat rent from the prior year but had it rented the 1st week of January for this current early August 2020 - July 31, 2021 school year cycle. For student rentals timing has a lot to do with this so looking at listed rents right now will be all over the map. Some folks will hold tight to the same or similar original rental rate, while others will slash rents to get someone in if only for a 3-4 month term.

Overall there is a lot of supply and have sold several student rentals in south College Station and would only consider properties close to campus but prices still seem to be frothy IMO.

AgCPA95 said:

---

That increase wasn't what were were seeing with a house close to campus that is walkable, bike able and on the bus route. We saw flat rent from the prior year but had it rented the 1st week of January for this current early August 2020 - July 31, 2021 school year cycle. For student rentals timing has a lot to do with this so looking at listed rents right now will be all over the map. Some folks will hold tight to the same or similar original rental rate, while others will slash rents to get someone in if only for a 3-4 month term.

Overall there is a lot of supply and have sold several student rentals in south College Station and would only consider properties close to campus but prices still seem to be frothy IMO.

---

I looked up some places on Montclair and they are charging $800/room starting next year.

The new places at $1k/mo aren't listed anywhere I can find them. I doubt they can get that, but they are telling renters that will be the price.

I have a 4/4 condo on sw pkwy and rent has tanked. I would be happy with 300/ room. I had to lease it out for 900 just to not have it empty.

COSCAG67 said:

---

I have a 4/4 condo on sw pkwy and rent has tanked. I would be happy with 300/ room. I had to lease it out for 900 just to not have it empty.

---

We had 2 homes south of here from campus down off Welborn near the 40/WJB split and that we have owned for about 11 or 12 years. Fortunately we didn't go backward on rent, but they were getting hard and harder for our agent to rent and rent was basically flat for 2-3 years. I think a house sometime drew a different market especially for those with pets that wanted a yard, but we had to get more and more aggressive on timing of rental for the next turn of tenants or would lock up the existing tenants very early at a flat rent.

If I was getting $1k/room I could retire. My management company did get a lease for next year at $2800/month on a 5/4 'Ag Shack' built in 2013 (so not one of the newest/nicest out there). It's in the Northgate area...biking distance to campus. At the peak of the market I was getting $3000/month. At the low point I seem to recall taking a lease for $1000/month just get bodies in it. Also own some newer built townhomes in the same area and that rent is $2200-2300/month for 3 and 4 bedroom units (very nice finish out but 3 stories).

Seeing the rent online for $800 and trusting a good friend's daughter on the $1000 (both brand new places), I have come to the conclusion that a new, decked out place can likely get that kind of rent. Some people (daughter's roommates) do not care about price. They want a really nice, safe place.

I won't buy the place though. You may be able to get that sort of rent for a few years, but too many new places being built will make it hard to continue to collect that kind of money, especially when you aren't the new one anymore.

I was just surprised to hear and see this sort of price.

Thanks for all of your feedback. It keeps me grounded.

Now, I can donate more money to our football team!

At the ag shack peak I never saw any of my customers getting over $600 per room on 4/4 's and 5/5's and this was a few years ago

Where are these 4/4 5/5 located at that are $1000 per room ?

JP76 said:

---

At the ag shack peak I never saw any of my customers getting over $600 per room on 4/4 's and 5/5's and this was a few years ago

Where are these 4/4 5/5 located at that are $1000 per room ?

---

The $1k/room isn't verified by contract. It is what the sales office is telling renters. From the website, it looks like they are selling these homes to investors. They are likely telling investors that they can or plan on renting at $1k/room. The daughter had gone into the sales office asking about rent prices and was told that they will rent for $1k. None of the homes are for rent from when I looked.

It is called The Estates of College Station.

To repeat, the $800 is verified. The daughter's new lease is $800/mo or move out. Also, you can find the rent price on the internet. I can't find the $1k one, but maybe someone else can.

If you can buy one of these for under $400k and feel pretty good about getting $k/mo in rent, I would seriously consider it. I just don't think you can get that according to all posters. Also not sure how long you could get that.

$1000 per month seems a bit high but it really depends on location (i.e., proximity to A&M, historical district, etc). Other factors include # of roommates, the smaller the more $ per student, and of course the newness and quality of the property.

We own a rental home one mile south of campus around Holleman and Glade. The house is in great shape with a huge backyard but certainly not brand new with the latest and greatest upgrades - granite counter tops, etc. We get $450/mo per renter.

If the same house was in the historical district within walking distance to campus and finished out with everything new, we could get much more than what we are asking.