Due Dilligence While Looking at 100+ Units Student Housing

11 Replies

Hi I am looking at buying  and raising money for a 100+ unit Student Housing and I was wondering if people can share some thoughts on what to focus on during due diligence especially from the student housing of that size.

Make sure you have solid property management lined-up that has experience with student housing.  Collecting rent from college kids is a special animal.  

The DD would be the same as MF with some additional items.

1.PM experience with student housing, lease up and marketing to this niche.

2. Size and stability of the school

3. Distance from the school

4. Distance to shuttle or public transportation

5. Ability to bike to school

6. Number of student vs number of on campus rooms

7. Can the students commute from home?

8.  When is the lease up window?

9. How will you compete or not compete with new properties coming on line

10. Amenities

11.  Should you rent by the bed or by the unit?

12. How can you get in school advertisement or referrals.

#1 is the most important item.  You want someone that knows your market and how to drive the students to your facility.

Thanks Jeff Greenberg All excellent points and very helpful. Appreciate your inputs.

I have been told by my lender that the requirements for student housing agency loan are that you need someone with experience on at least 3, but preferably 5, student housing loans. So that is a much more strenuous requirement than MFH agency loan.

Originally posted by @Michael Le :

I have been told by my lender that the requirements for student housing agency loan are that you need someone with experience on at least 3, but preferably 5, student housing loans. So that is a much more strenuous requirement than MFH agency loan.

 Thanks for sharing this, did not hear that from any of the lenders I spoke too. I do have multiple options on securing the debt financing.

Student housing requires specialized property management. I have experience with multiple student housing assets through one of my funds - from LA to NYC to PHL to MIA. If you have any specific questions, especially regarding management of the asset once acquired, don’t hesitate contacting me.

@Conor Freeman thank you so much for the Freddie Mac guidelines. I’m very interested in student housing. Have found a property and I’m trying to analyze now.

thank you for the update

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