Real Estate Investor Magazine February 2025 February 2025 | Page 81

2 . Student Accommodation
Properties near universities and colleges are in high demand , and student accommodation presents a fantastic opportunity for positive cash flow . Instead of renting out a house or apartment to a single tenant , you can charge per room or per bed , significantly increasing your total rental income .
Since student rentals are typically in high demand , vacancy rates remain low , ensuring a steady stream of income . However , investors should be mindful of seasonal turnover and property management logistics when considering this investment type .
3 . Short-Term Rentals ( Airbnb and Vacation Homes )
Short-term rental properties in high-demand tourist or business areas can generate substantially higher rental income than traditional long-term leases . Platforms like Airbnb allow property owners to charge premium rates , particularly during peak seasons .

However , investors must consider the costs associated with property management , maintenance , and potential vacancy fluctuations .

Ensuring an attractive , well-managed property in a high-demand location is key to maintaining positive cash flow .

4 . Co-Living Spaces
Co-living arrangements have become increasingly popular , especially among young professionals and digital nomads . In a co-living space , tenants rent private rooms while sharing communal areas like kitchens and living rooms .
Because rental income is generated from multiple tenants rather than a single lease , overall revenue is higher . Co-living properties also tend to have lower vacancy rates and higher tenant retention , making them a viable strategy for achieving positive cash flow .

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