Luxury student housing seems to be the way to go in downtown Columbia, SC, these days. Not to mention, the demand for single-family rentals that are older in age, especially in Olympia and Granby, has softened up quite a bit. Things do get a bit challenging to the point where it may be time to get an exit strategy in place before things get a little too chaotic, like Saturdays in the fall at Williams-Brice Stadium (the only difference is that we’re talking about is the home game chaos of thousands of fans cheering loudly for those Gamecocks).
If an exit strategy is what you’re planning for, you need to know a few things. One of them is that landlords like you may be facing rising turnover costs and even stricter rental inspections in student living spaces. Selling it “as-is” will probably be a challenge if you’re going to go the traditional route. That’s where cash buyers can really be the difference maker in your situation. The sooner you want to exit USC student rentals, the better, right?
If you’ve owned a student rental near the University of South Carolina for a decade or more, you felt that shift. Fifteen years ago, it was enough for a clean mill house in West Columbia or Hilton Head with decent parking spaces. But these days, you have tenants that may be comparing their current space on your property to the downtown spaces that feature all kinds of amenities. We’re talking fitness centers, secure entry, and even rooftop pools. These amenity-rich housing options are what kill your rental income efforts. Even full renovations will cost you money and all kinds of time.
Here’s the rough truth: with people choosing amenities over charm, it’s going to be hard to compete against that kind of buyer’s psychology. On the other hand, you probably heard that enrollment growth has been slowing down despite the increase in supply. This results in an imbalance that leads to higher vacancy rates. Especially when those rates apply to older B-class rentals across Columbia. The vacancy rate in Richland County alone is 6 percent, using data as recent as 2021. It’s unclear how much in particular pertains to Class-B properties. Not to be outdone, while the entire state of South Carolina is wrestling with 10 percent vacancy rates statewide (as of 2024), median rents have dropped in all but two counties that same year. Richland County is one of them (the other is Dorchester in the Charleston area). You’d be in good shape otherwise if your apartment was near Myrtle Beach which features plenty of green space and on-site parking.
When this happens, you’re probably stuck with this one question that’s been keeping you up at night lately. That question is: is it worth spending more money on a property that is aging out of the market? If the answer is no, then chances are the smartest decision you could make is taking that property off of your hands. Cash home buyers for student housing in Columbia, SC, could be the best solution if you want to sell the property as-is.
Selling a student rental through traditional means, as you would with single-family homes, is going to be a massive challenge. Even to the point where you’re going to run into the so-called “helicopter parents”. By going the traditional route, you’ll be coordinating with 4 different roommates. Since the parents are also co-signers, you’ll also be answering to 4 sets of parents as well. While not always a guarantee, there’s a higher than likely chance that one parent or even two will demand things like “safety inspections”.
Four roommates, four schedules, four sets of parents asking endless questions. All culminating in a perfect storm of headaches, frustration, and who knows what else. Only for the whole deal to fall apart faster than you can blink. That’s where direct buyers like High Noon Home Buyers come into the mix.
These are the kind of cash buyers who acquire properties as-is. However, they do things differently, such as a single walkthrough, no staging, no repeated showings, or negotiating with the parents. One single decision over a months-long process? The answer is practically a no-brainer. This next topic will further prove the “no-brainer” label.
What are the odds that you’re way past tired of summer turnovers and fixing drywall? If one would hazard a guess, you’re pretty much over it. No one can blame you for those sentiments. If you think about it, you have the “party damage” checklist to look through, along with the price tag that’s tacked on to it.
All told, you’re looking at a summer that’ll cost you $6500-$7000 tops. But that’s not all. You have the June/July vacancy gap. Many property owners who deal with student housing may or may not know about this silent killer. It’s one that can cause you to lose out on close to $4000 in lost revenue alone. All of a sudden, those costs easily surpass the five-figure mark (specifically $10,500-$11,000). If that isn’t a punch in the gut, then what is?
Oh, we’re not done yet with the numbers. Let’s pile on the total make-ready cost that averages around $11,000 or more. Just like that, your total costs double. You’ll lose money on the repairs and vacancies while the home value doesn’t increase. That is one hell of a painful experience that can be as blistering as the heat of South Carolina summers. All for just simply staying competitive with the other landlords in Columbia and Richland County, for that matter.
Did you know that one bad semester with a loud tenant can spell trouble for you? Specifically, you can rack up “points” on your rental permit for trash or even noise violations. If you rack up 15 points (short-term rentals) or 20 points (long-term rentals), your permit will be revoked. Considering student rentals are either short-term or long-term, it’s important to be mindful of how many points you need to avoid racking up. Let’s go over the violation thresholds:
Let’s not forget that violations come with monetary penalties in the form of fines. The first code violation is a $100 fine. Subsequent violations will lead to $500, and a serious offense is $1000. Not only will a revocation of your permit lead to losing that stream of rental income, but you’re also out hundreds or even thousands of dollars in fines on top of that.
If you’re selling through traditional pathways, the potential risk of losing your permit can hang above you like a dark cloud. However, that won’t matter if you work with a cash buyer such as High Noon Home Buyers. We provide you with a cash offer in West Columbia and nearby towns, even if you have points, fines to pay off, or anything that you’re stuck with for the moment.
Most landlords will reposition rather than sell. However, there’s something that you may want to consider. The 1031 exchange allows you to defer the capital gains taxes by reinvesting proceeds into another investment property or qualifying asset. However, you need to act fast because of the tight timeline. You have 45 days to identify a replacement and 180 days to close.
But here’s where things can get hectic: if a retail buyer decides to back out for whatever reason, the clock doesn’t reset. If you don’t meet the deadline, the tax bill will be large and will hang over your head. In an unpredictable Columbia, SC housing market, it will be a challenge. That’s why going with cash buyers will be the better option since you’ll quickly meet the timeline requirements.
You won’t have to worry about the property taxes when selling, nor will you have to worry about those surprise loose ends coming to bite you. You get a guaranteed close date, and the property is off your hands.
Why waste another August painting walls and chasing rent checks? Don’t you think it’s time to move on and focus on less stressful things? How about retirement? High Noon Home Buyers has you covered, and we’ll make sure that your close date is sooner rather than later or never. How does 7 days sound to you?
Retire with your equity intact. If you want to learn more about how you can sell in Dentsville as-is or if you have any questions, contact High Noon Home Buyers now.
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