College students

Replies to This Discussion

Permalink Reply by Dee Allomong on May 17, 2009 at 8:35pm

I have been reading through the May/June 2009 issue of JPM: Journal of Property Management, which is published by IREM. The article "Opportunity Comes Knocking" by Diana Mirel outlines various niche markets for professional property managers. Student and Campus Housing is one of the niches mentioned. Because of this niche's relationship to university enrollment (which is cited as going up during economic downturns), student rental housing is less impacted by the high vacancy rates we are seeing during the current economic recession.

While the article did not specifically address damage caused by campus housing tenants, it did mention that the leases are generally drawn up on a per-person basis, reducing the individual liability for each student, but increasing the "gross rent potential." The increased rent may help cover the increased risks. I would imagine that other precautions are also necessary, such as a higher or per-tenant security deposits and leases that specifically spell out responsibilities when damage exceeds normal wear and tear.

LTPM Members - do you manage campus housing? Share your experiences. What are the benefits and drawbacks you've encountered? How do you ensure unit profitability when there is a higher than usual chance of costly damage?

• ▶ Reply

Permalink Reply by Dee Allomong on May 24, 2009 at 1:22pm

Today, I posted an article,

Colorado Apartment Vacancies, Rents Up in Q1 Outside Denver, that suggests that the college housing rental niche may have more stability and may be less affected by economic lows than non-campus housing - has this been your experience? What is the "cost" of this stability?

• ▶ Reply

Permalink Reply by Steven Kreiger on November 8, 2009 at 10:42am

Jeff,

This is a great point. In going along with this topic, how many Property Owners have completed an itemized inventory of their belongings inside their rental properties in the event of a theft or damage due to a natural disaster? I would venture to say, not too many. The time will eventually come when the insurance industry makes it a requirement for homeowners, renters and business owners to provide and maintain an up to date itemized inventory of the possessions in their properties. My company Secure Homes, LLC was developed to help clients like yours to prepare in advance and create a secure online inventory they can securely access 24/7 from any computer with internet access. Check us out at www.securehomesllc.com for more details and please help by educating your clients as well as your friends and family about the need to be proactive and handle this task before it's too late.

• ▶ Reply