Property Investment Strategy - Student Housing Part 2

Recently, I mentioned Student Housing as an investment strategy since I now have three children in college and housing is always an issue.  There never seems to be enough and what is available is very often higher per square foot than complexes that do not allow students.

Warning, even thought this can be an excellent cash flow investment, it is not for the feint of heart or new investors.  My opinion for investors who want to pursue this strategy is interview property managers to find an experienced manager in this niche.  Unlike most multifamily communities that can have a lease expiring in any month, there is usually only two times a year residents move in or out of campus housing.  For example, the community my son is in only has one check-in period per year - August 15 to August 21.  If you do not prepare for this very short window with advertising, staffing, maintenance, repairs, etc., you can miss an entire year of rentals.  Experienced managers can coordinate staff, students, parents and school schedules to maximize the cash flow on these properties.

Experienced campus housing managers also understand their clients - students!  This is an active crowd that needs plenty of activities as well as plenty of patience.  For a portion of the students, this is their first time away from school and have not experienced apartment living as well as dealing with roommates that they may be meeting for the first time.  Managers need to wear many different hats for several reasons:

• Ease homesickness for many of the students
• Give a sense of community to a large group of "strangers"
• Understand the activities of this group of active young people - video games, sports, fitness, socializing - and have plenty of planned activities to cure boredom and homesickness.
• Provide adequate quiet areas for studying as well as computer/work areas for school work.
• Management skills to deal with changing staffs made up mainly of college students.