Adapting to Change: Best Practices for Student Housing Operators
In an era of rapid change, the need for adaptability, flexibility, and nimbleness in property management is more critical than ever. This article will cover some of the current market trends we’re seeing and how they relate to student housing operators in particular. It will also offer some best practices and strategies to help you capitalize on these trends and stay competitive.
State of the Real Estate Market
Let’s examine some of the real estate market trends impacting property management businesses and how they pertain to student housing operators.
Nationwide Housing Shortages Means Increased Demand
The CBRE Midyear Global Real Estate Market Outlook 2023 confirms that consumer demand remains robust across multifamily housing as a whole, even amidst economic uncertainties.
Demand for student housing, in particular, has surged as post-pandemic enrollment continues to rise while on-campus housing options remain, for the most part, finite. As a result, more and more students are in search of off-campus housing. While the market remains extremely active, this demand doesn’t guarantee success for property management operators. Many property management companies are recognizing the market opportunity to close the housing gap between student enrollment and on-campus housing.
Six Best Practices for Student Housing Property Management Businesses
As a student housing operator, it’s important to follow and focus on these six tenets to meet the demands of today’s market, win against your competition, and attract prospective students.
1.) Stay on Top of Changing Market Changes: Monitor market trends regularly in your area, follow student housing-related real estate news channels, and attend industry events like FUTURE, the Real Estate Conference by AppFolio, NMHC Student Housing, and InterFace Conference. Use the learnings and insights to adjust your strategies accordingly to stay ahead of the curve.
2.) Adjust Leasing Structure to Maximize Occupancy: When it comes to student housing, you need to clearly understand whether individual or joint leases are preferred by renters of your market. You can attract students to your properties by competitively marketing them against your competitors and adjust your leasing strategy mid-season by changing from joint and several to by-the-bed leases or vice versa to ensure maximum occupancy at your properties.
3.) Maintain Competitive Pricing Options: Ensure that your pricing is competitive by comparing current pre-leasing dynamics for your market to historical trends.
4.) Harness the Power of Data: Mastering student housing property management means mastering data. From forecasting leasing trends using your portfolio’s past and present performance to understanding enrollment trends for the university in the market you serve as well as the number of beds in development and when they go live, data is your secret weapon. While data collection and analysis can be daunting, leveraging specialized tools and platforms — and consolidating them into a single, powerful source of truth — can dramatically boost the accuracy and efficiency of your operations. The result? Faster, smarter decisions and a more successful student housing business.
5.) Provide a Modern Renter Experience: Implement remote access control systems, intercoms, high-speed wifi, smart thermostats, and online portals to pay rent, submit maintenance requests, and text for communication to provide a seamless experience. Reputable student housing property management software offers tools and technologies designed to enhance flexibility and responsiveness, along with time-saving automation, all on one powerful platform.
With a constant turnover of students year to year, Granite knows that they’re vying for students’ attention, and they have to stay one step ahead with the types of housing they offer and amenities students are looking for.”
6.) Prioritize Effective Marketing: Attract more students with modern marketing tactics such as a professional website, online applications, listings across third-party rental sites, virtual showings, self-guided tours, and online leases. Additionally, leverage social media platforms to share photos, amenities, and renter experiences to show students what it’s like to live at your properties.
Maximizing Occupancy Rates and Market Demand With AppFolio
Ultimately, property management businesses must focus on operational efficiency and flexibility to maximize occupancy rates to maintain performance. AppFolio’s student housing property management software can help you streamline processes, work smarter, and achieve your goals. As a partner, AppFolio provides tools and technologies that are designed to enhance flexibility and responsiveness, along with time-saving automation, all on one powerful platform.
Implementing the right technology and putting strategies in place now is essential for capitalizing on this historic growth. If your property management strategy lacks the necessary flexibility and nimbleness, you risk missing out on these opportunities. To learn more about how the right student housing property management software can support your needs, download our guide below.