Student Rental Properties in Guelph are Changing

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Student Rentals in Guelph When it comes to Guelph rental properties, the times they are a-changing. At least they are in my opinion. And I know I’m not alone, because in talking to my Guelph home investor buyer clients, quite a few of them have shifted their focus away from student rentals. Now, they’ve got their eyes on properties that would appeal to families and young professionals as target tenants.

What has led to this shift? Well, I think there are a few things – and they’re all going on at once.

First, there has been an influx of purpose-built developments that are geared towards students (and parents of students / investors). More are coming. This is part of the picture for a few reasons. First, these new Guelph student-y condos are relatively shiny and new, and they’re conveniently located along a bus route. Socially, this set-up is appealing to students and, hey, we were all young once and we understand. It does sound like fun (for them.)

Next up, the University of Guelph is also not growing at the same rate as it has in years past, and this is another piece of the puzzle. There was a time when everyone was scrambling to compete for apartments and, at least in the last nine months, that trend has shifted.

Lastly, as we see home prices in Guelph continuing to rise, and bidding becoming so commonplace, the math starts to get fuzzy. Investors can stay focused on cap rates that they deem favourable, but as property values rise and rents don’t soar with them… making the math work out starts to become harder and harder.

Now, I’m not suggesting that property investors can’t make it work in Guelph, if renting to students is their plan. It just may no longer be the investment ‘no brainer’ that it once was. Students have more options now, and landlords are actually have to work at getting students signed on. Slumlords (and yes, I’m sorry dear readers but they do exist in Guelph as everywhere) are divesting of their holdings left, right, and center. Those staying in the rental game have started to wonder if making a house look shiny and new (to attract tenants) can possibly make sense… knowing how it will likely look once the tenants are gone. More and more, I am hearing about the shift to renovations and rental agreements targeting a different renter demographic; namely, professional couples and families.

It’s an interesting change, and I suspect for a lot of the Guelph home owners in high-density student rental neighbourhoods, it may indeed be a very welcomed change.

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