Wanted to reach out to the network to get some guidance and advice. I am in contract on a 96 unit property down in Tallahassee, FL right across The street from FSU. This would be my first student housing deal and currently the property is not being run like that now. I see a great opportunity giving the location is steps to the college, with development going on in the area and price for rent rising, my rents would accommodate a large portion of students who can't afford those higher rents. I am underwriting the deal now and at first glance it looked great but digging deeper and the numbers are starting to not show the same returns.
I did tour the market and saw the competition, the deal is still there but need some help from BP. Anyone have some recommendations on expenses, staffing and turn costs for student houses.
Look forward to hearing back and getting some insight.
Congrats on the deal. There is a guy that does only student housing that I heard about some years ago. He takes care of everything for the renter, meals, Landry, even down to supplying the plates and knives and forks. Now for that convenience they do pay about market rent, but for college kids it was worth it. I will have to look in my library to see if I can find this materials.
One big thing to think about is the time that school is not in session - summer time and how to make up that rental shortfall.
I wish I could be more of assistance.
@Pat G. all the leases are 12 months, it's 1 thing I asked the manger I am going to use. My big question is estimating expenses, I was looking for some market advice for expenses per unit.
I do appreciate the help and advice