In Utah County, cities typically restrict occupancy to one couple, or three unrelated singles per unit.
For example, with a legal duplex, you can put up to 6 singles, 3 per unit, or two couples total. However, there are several condo complexes just south of campus (on condo row between 700 N and BYU) and some newer complexes (like the University Ave complex , and the Lanai), that allow 4 singles per unit. The only complex that I know of that allows 6 students, is the Brownstone.
Obviously, the higher the occupancy the better the cash flow. These days, the occupancy on a unit has to conform to the original zoning regulations and cannot be changed. Unlike the past, complexes with a higher occupancy that have been built recently have had to provide off street parking for every occupant.
In the past, I’ve sold several single-family homes near campus that were zoned with a higher occupancy, and had an occupancy of 6 per unit. The problem with the higher occupancy units is that the students have to share a room, which isn’t as popular as when I was a broke Cougar, years ago!
The best way to confirm occupancy and zoning is to have your agent (hopefully myself), make any offer contingent on your approval of a zoning verification. You can get a zoning verification at city offices for $20. It will tell you the property’s current use and occupancy restrictions.
During the spring/summer months, higher occupancy units are harder to fill, because you can find private rooms during spring/summer for as little as $150 a month per student. You’ll typically find that there is a $100 drop in rental prices during the Spring/Summer terms on most student rentals.
While selling property near BYU the last several years, I have noticed that BYU approved properties have generally seen better appreciation than properties that haven’t been BYU approved. I also like to find investments within the undergrad boundary, not only because of proximity to BYU, but because they’ve also seen better appreciation historically.
A two bed one bath apartment near campus generally rents to couples for around $600-$650 a month. Three bedroom units rent from $700-$800 depending on location and size.
Singles are nice, because although they usually take a break spring/summer, they generally pay more during the eight fall/winter months than the couples do. There seems to be a shift to year round contracts right now, making it the student’s responsibility to find a replacement if he/she decides to head home for the summer.
Singles must live in BYU approved properties. Most live in apartments or condos near campus. Singles also seem to be a little harder on things than married folks.
Investment note: BYU approved condos near campus have appreciated very nicely in the past. It seems the closer the condo is to BYU, the easier it is to rent.
Single rooms vary in income from $260-$450 for a private room, to $230-$260 for a shared room fall/winter, depending on the project and its proximity to campus. Rents drop around $100 per student Spring/Summer.
Quackenbush Realty
1 E Center St, Provo, UT 84606
801-830-2125 / coryquackenbush@gmail.com
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