College Students Want to Reserve for August, Fall Semester

[Jon S.]

I've just completed renovation on a triplex near a private university, everything is done except the landscaping and parking, and those areas are in progress. One unit is leased; as of May 1st they moved in. I would like to keep this a student housing to avoid conflicts between renters, and because it will become popular with students. Students are a great niche, this is a 5 minute walk to their college, and it is nicer than 99% of the available housing in this area. If you only include houses, this is definitely in the top 1% for quality. The competition is apartment complexes, which are very well appointed, but they don't like renting to students so they make it difficult for students to get apartments there by requiring huge deposits, etc. So high quality housing that is not in an apt complex is in short supply. However, students who want housing in the summer is also in short supply. The other available houses are generally very low quality inside, but they also have lower rent. Once I get these leased for 12 months, I will probably be able to maintain a wait list on these, and the cash flow will be find, but getting the first ones leased over the summer months is the challenge. I dropped the rental price thinking that would help, and it did increase the number of calls, but still all the calls are interested in August. If I'm going to wait till August, then I see no reason to drop the price, as in August I will be able to get the higher rent, at least I think that is going to be the case. Any advice appreciated.  

[Jeff Greenberg]

I just got into my first student housing, but realize that the leasing was so different from what I am hearing.  We are in the process of signing leases for August 2017. Leases are August to May with some summer rentals.  The students pay by the semester, so most of the rev comes in twice a year.  Even though we rent by the unit, all students are on the lease and responsible for the full lease amount. Deposits are 1600 per unit. This is in Ohio.