To say that student housing is difficult for property managers would be an understatement.
Every academic year only brings so many students to campus, and once classes begin, those students tend to stay put. As a result, any units that are unfilled at the end of the pre-summer leasing season will likely remain empty until the start of the spring semester — or worse, until the start of the following academic year.
And while demand for student housing continues to rise, supply has outpaced that demand in some areas. In fact, “Texas A&M University and Texas Tech University saw negative rent growth and a decline in occupancy rates because of new supply last year.”
As a result, keeping these units filled can be challenging. That’s why it’s important for student housing property managers to stay competitive and simplify the leasing process. Here are three ways to do that.
1. Utilize tech to improve speed and efficiency.
Students typically sign leases before leaving for summer break but generally don’t move during the academic year. That leaves a relatively small window of time (usually April to June) during which property managers can fill their units.
This makes for a highly competitive leasing period, so it’s in every property manager’s best interest to make signing a lease as fast and easy as possible. Unfortunately, standard requirements like security deposit checks and guarantor paperwork can involve multiple days of back-and-forth, making the process a tedious one.
Incorporating tech can help expedite the process. Many properties, for example, now allow applicants to complete applications digitally. Beyond that, allowing prospective residents to pay for deposits online or consider deposit alternatives enables them to fulfill this requirement immediately, right in the leasing office.
2. Find ways to approve more renters.
In general, property managers require prospective residents who don’t meet the minimum income requirements for a rental unit to have a guarantor, or someone to co-sign the lease and assume responsibility if the resident fails to pay rent. Within the student housing sector, however, property managers will sometimes enforce a guarantor requirement for all residents, regardless of their financial situation.
Unfortunately, not every student can easily secure a guarantor. While most will turn to their parents when asked to provide one, some students may not have a parent who is willing (or financially able) to help. This can be particularly challenging for international students, as many property managers only accept U.S. citizens as guarantors. Other students simply want to remain independent and will avoid asking for outside help altogether.
Some students who are unable to provide a guarantor may be able to secure a unit with a large upfront payment (often three months’ rent), but this isn’t always an option — and even when it is, it can be cost-prohibitive.
As a result, the student guarantor requirement can whittle down the pool of potential renters, but financial services providers give prospective residents a way to qualify. (Full disclosure: My company is among these providers.) Tech-driven alternatives make it easy for students to fulfill the guarantor requirement, and mean one less obstacle to filling units.
3. Increase renewals by providing a great resident experience.
Finding new residents for each upcoming year is a time-consuming process. Property managers can cut down on the time involved by maximizing the number of students who renew at the end of the spring semester.
The best way to do this is to provide a great resident experience through the duration of each lease. If a student is satisfied with their experience, they’ll be more likely to renew for the following academic year.
Start by giving students the opportunity to tell you what you can do to make their experiences better. Send out surveys after move-in and at regular intervals during the lease term, and ask what they like about living at your property, as well as where there’s room for improvement. This not only shows that you care, but also ensures that you’re allocating resources in a way that makes a difference to your residents.
You can also minimize stress on both yourself and students by offering early renewals before the end of the school year, with the option to lock in their current rent for the following term. This way, students who are planning to return won’t have to worry about securing a place to live (or about rising rent costs), and you’ll have one less unit to fill during the standard leasing period.
Ultimately, succeeding in the student housing sector requires making the leasing process as easy as possible for residents. Today’s students expect speed and convenience, and the property managers who deliver on these expectations will be the most successful at filling units — and keeping them filled.