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3 Reasons Why Property Managers Should Invest in Secondary Cities2 min read

20 October 2022 2 min read
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3 Reasons Why Property Managers Should Invest in Secondary Cities2 min read

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Universities are now expanding to open branch campuses in cities near their main campuses. Universities such as University of Bologna in Italy is an example, as they have opened branch campuses in the neighboring cities of Cesena, Forlì, Ravenna, Rimini. There are several reasons for this, including universities wanting to make education more accessible to students and the overpopulation of students in these metropolitan areas. Here are three reasons why property managers should consider investing in properties in these secondary cities.

University of Bologna in Bologna, Italy

1. There is a high demand

With universities opening up campuses in these secondary cities comes a demand for student housing that these cities have not seen before. Because of this, it is a gold mine for property managers to invest in student housing units here. Since there is such a high demand, there is less risk for the property manager to invest in these properties because there is high probability that these units will have no issues being consistently rented by student tenants.

2. There is less competition 

These secondary cities are a great target for property managers because there is less competition than in the main metropolitan areas. With less competition to worry about, property managers can quickly rise to market leaders in these areas. Offering student-specific services, getting the word out to universities about your units, and offering top of the line communication and customer service to tenants will quickly help property managers rise to the top of the market in these secondary cities. 

3. Acquiring new units is cheaper

Not only is there high demand and less competition in these secondary cities, but is is also cheaper for property managers to acquire new units there. Compared to metropolitan areas, it can be significantly less expensive to purchase, renovate, and furnish units in less populated areas. Of course, since it costs less to acquire the units, it is likely that property managers will have to offer the units at a lower rent price. This is also important since the student market in these secondary cities need housing that is affordable and less pricy than the standard pricing in main cities. 

This trend of universities opening branches in secondary cities is a trend that is not going to end anytime in the near or far future. RoomMate S.A. has been working with customers from main and secondary cities, so if you are interested and want to learn more about the rise of secondary cities, book a demo today! 

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