Trichy is a growing city with a steady increase in demand for rental properties. Several factors contribute to rental growth in this region, and one of the most discussed is the presence of reputed institutions like medical colleges. The city is home to government and private medical colleges that attract thousands of students and faculty every year.
This article discusses whether having a medical college nearby can actually boost rental yields for Trichy flats, and what factors influence this potential.
Constant Demand for Accommodation
Medical colleges operate throughout the year and do not follow long vacation breaks like other institutions. This creates a continuous demand for housing. Students, interns, house surgeons, junior doctors, and even visiting faculty need accommodation nearby. This type of tenant base creates minimal vacancy periods for house owners.
Unlike corporate tenants, medical students and staff are less likely to relocate frequently, making their stay relatively longer. This leads to consistent rental income and fewer tenant changeovers.
Convenience is a Priority for Medical Students
Medical education is intense and comes with a tight schedule. Most students prefer flats that are either within walking distance or just a short ride from the college. Daily commuting becomes a burden when the flat is located too far.
Trichy flats that are situated within 2 to 3 kilometers of a major medical college are often preferred. This preference creates a situation where multiple tenants may compete for the same flat, giving the owner better rent negotiation power.
Also, students sharing flats with roommates often allow owners to divide the total rent across individuals, which can lead to slightly higher income than renting to a single family.
Impact of Nearby Amenities
Proximity to a medical college is only part of the story. Tenants also look for essential amenities like food joints, pharmacies, stationery shops, and transport facilities. Flats located in areas with a good support ecosystem tend to have higher occupancy rates.
Trichy has several such pockets where flats near medical colleges also benefit from a developed environment. For example, areas around KMC or SRM Medical College are seeing regular interest from students for rental flats.
This increased activity creates stable cash flow for property owners.
Differences in Yield – With and Without Proximity
Flats located near a reputed medical college in Trichy typically command 10 to 15 percent higher rent compared to those farther away. The difference is not just due to the distance but also because of higher demand and lower supply in those localities.
Let us consider two flats of similar size and features. One is located within 1 kilometer of a well-known medical college, and the other is 5 kilometers away. The former is more likely to get rented faster, and the rent quoted will usually be higher. Over time, this leads to better overall yield for the owner.
Maintenance and Wear Factor
One thing to consider while renting to students is wear and tear. Since students may not treat the property with the same care as long-term family tenants, some owners may experience frequent maintenance requests. However, with periodic inspections and basic upkeep, this can be managed.
If the rental yield is higher, such maintenance costs can be factored into the profit margin.
Potential Challenges
While proximity to a medical college improves the chances of higher rent, not all flats benefit equally. Flats that lack basic furnishing or are located in isolated pockets may not get the same interest. Also, overly high rent expectations can drive students to choose other options such as hostel facilities or shared apartments.
Another factor is parking space. Many students and junior doctors use two-wheelers. Lack of parking can be a deterrent.
So, property owners must evaluate whether their flats meet the minimum criteria expected by student tenants before expecting a premium rent.
Rental Agreement Duration
Unlike IT professionals, who usually sign 11-month agreements, medical students often look for academic-year-based contracts. This typically spans 10 to 11 months with the possibility of renewal.
Owners must be prepared for this cycle. If a flat goes vacant in the middle of an academic year, it may remain empty until the next batch of students arrive. So, timely listing and tenant acquisition are important to avoid revenue gaps.
Summary
Trichy flats located close to medical colleges do enjoy better rental prospects. The reasons include high student population, limited hostel space, convenience preference, and relatively stable tenant behavior. The rental yield can be higher provided the flat is maintained well and located in a locality with proper amenities.
However, it is not an automatic guarantee of high returns. Owners must be mindful of the specific needs of the tenant group they are targeting and keep the property in rent-ready condition.
In short, while proximity to a medical college does give flats in Trichy an advantage in terms of rental yield, other supporting factors must align to make the most of this opportunity.
