Disaster For California Student Housing Providers.

[William Coet]

What should owners of student housing do in this situation? The California State University system has gone to online classes for the fall semester which means students will not move into their housing this fall.

Below is the very bad news for student housing providers at these campuses.  These properties will take a huge revenue loss of up to 50% of their annual revenue and possibly 100% (if the campuses don't open for the spring 2021 semester). These are not properties that typically attract long-term tenants, and even if they did, most housing providers would not want to lease them to non-students because they will need to return to student based rentals in 2022 to meet their cost demands (student housing often sells at a price premium and therefore has high debt burden).

There is no funding available for these housing providers or the tenants (students do not get unemployment or special funding from the current stimulus packages for this situation).

"Most classes across the California State
University system will continue to be held online through the fall
because of the spread of the coronavirus, Chancellor Tim White said
Tuesday."
https://edsource.org/2020/cali...