VALUING YOUR INVESTMENT, Pt. 2: So Now you Own it!
Now that you own a student rental, it's time to enhance the value of your home through income, appreciation, and smart operational choices.
This post outlines key strategies to help you maintain and grow the value of your investment over time.
Consistent & Predictable Income
Once your property is move-in ready, it’s time to create stability — starting with the systems that support reliable rental income. Consistency comes from a mix of smart pricing, thoughtful tenant selection, and a lease structure that sets clear expectations for payments, communication, and responsibilities.
Setting Rent not just based on averages, but also on what features your home offers (location, parking, in-unit laundry, furnished, etc.). If you're unsure where to start, I can help you assess your property and local market trends - just contact me.
Tenant Selection & Lease Structure will depend on whether or not you are using a property manager. PMs will have their own marketing, tenant screening, and leasing formats in place. Check out this page I made to learn about what it means to hire a property manager. If you’re self-managing, set clear systems for rent payments and maintenance requests so tenants know what to do — and you can respond promptly.
Measuring Rent Income Stability
Monthly Cash Flow
Cashflow = Rent Income - Mortgage, Taxes, Insurance, Utilities, Maintenence.
Aim for positive monthly cash flow. If cash flow is lower than expected, revisit your expenses and repair costs, minimize vacancy, and consider raising rent in line with the market. Don’t overlook tax strategy — maximizing deductions and depreciation can significantly boost your long-term returns.
Cash on Cash (CoC) Return
CoC = (Annual Cash Flow / Total Cash Invested) x 100
This metric shows how efficiently your investment generates income. For a college rental, a cash-on-cash return of 6–10% is generally strong, though the ideal range can vary based on the property and whether you're also relying on appreciation.
Value-Add Improvements
If you favor an involved, hands-on approach, the next step is increasing your home's value through smart upgrades. These improvements can attract better tenants, justify higher rent, reduce turnover, and improve resale value when your student graduates.
High-Impact Low-Cost Upgrades - fresh paint, modern fixtures, durable flooring
Student Friendly Upgrades - bike storage, outdoor fire pit, extra outlets
Large Value-Add Upgrades - adding a bedroom (if feasible), HVAC, solar panels...
Even small updates can go a long way — especially in competitive college rental markets. Prioritize the upgrades that add rental value and future appreciation.