Student Housing Offers Opportunities and Challenges
September 8, 2009
Designing a multi-residential building for student housing requires modifications to both your building and your leasing strategies.
By John Helyar
Student housing is a unique and interesting market. While this market presents new opportunities, it also presents new challenges.
In past years landlords have preferred to avoid renting to students whenever possible as the thought conjured up images of parties, noise complaints and damaged suites. Now however, student housing has now taken a whole new approach and some properties may even be considered luxury buildings due to the amenities provided.
Nothing attracts the Y generation, as those born between 1977 and 1994 are often referred to, more than technology. This generation is very Web savvy and tech oriented. Here are just a few of the common amenities you will find at an off-campus student residence:
• Wireless Internet cafes;
• Entertainment lounges equipped with large-screen TVs, Wii’s, Xboxes and various other video game consoles;
• Fully equipped fitness facilities; and
• On-site movie theatres.
A great off-campus student housing property will feel like it is just an extension of the campus. If a property is to be used for off-campus student housing, not only will there be modifications to the building itself, the marketing and leasing strategies will also be different.
Although excellent customer service should be provided at all times, it is very important that on student move-in day your staff is at their peak performance. A lot of these students will be leaving home for the first time and be accompanied by parents – many of whom may be paying all or a portion of the rent. The parents must be confident that their son or daughter will be comfortable in their new “home away from home”.
Invest in a modern website that will highlight your property’s personality. You can also provide students with the option to obtain an email address through your website; this will provide ongoing indirect marketing each time they use their account. Providing a social calendar of events that encourages the participation of the residents and keeping an up-to-date version on your website for students to view is an excellent way to attract the attention of prospects. Allowing maintenance and other concerns to be submitted electronically or offering a live chat option during business hours is also an attractive feature.
The traditional marketing methods such as signage and newspaper ads will still attract some attention; especially that of the parents looking on behalf of their student. However, you may also want to consider some innovative marketing techniques such as:
• A weblog
• MySpace page
• Facebook group or ad
• A video clip on YouTube
These are a part of everyday life for most students.
Another cost-effective option is online advertising on a site such as:
• www.kijiji.ca
• www.gottarent.com
• www.craigslist.com
Facebook is defined as “a social utility that connects you with the people around you”. This very popular website has over 59-million active users and offers an advanced technique that will allow you to target a specific market for your ad if you choose to do so. This can be a specific network, for example the University of Toronto. It will only be visible to users that belong to this network or a specific region such as Waterloo and will only be visible to users that have this city registered as their location. These ads can be customized to fit your advertising budget.
While Facebook does provide an excellent opportunity to promote your property to a vast market at a low cost, one should also keep in mind that all Facebook users have the ability to create groups. Based on personal opinions and/or experiences, they may create one that will reflect negatively about your property. An occasional search may be beneficial as it will keep you aware of any such groups and provide you with the opportunity to address issues if needed.
When leasing a student housing building, the student lifestyle should be considered.
As many students may not have employment or credit history, alternative acceptable criteria should be established. Ensure your staff is fully aware of these terms as this will keep the application process flowing smoothly. When compared to a standard rental building, the paperwork on a student housing property may be tripled as there are generally multiple applications and leases for one apartment unit.
Another factor to consider is that many students attend semesters that typically run
September to December, January to April and May to August. Therefore, it may be worthwhile to consider short-term leases rather than a usual 12-month lease. There may be a concern of vacancy during the summer months, but offering an incentive for longer-term leases or early sign up of returning students may help offset this slow season.
While it is still apartment living, student housing is a whole new world of property management.
This article appeared in the January/February 2008 issue of Canadian Apartment Magazine.
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