Student housing multifamily

[Hayden Wright]

Hello BP community!

I am running the numbers on a duplex right outside of a college town, and so far the deal seems too good to be true.

I know that college students are tougher on the property and there is higher turnover rate for student housing. Are there any other potential pit falls when it comes to student housing?

I appreciate your help!

[Dave Poeppelmeier]

@Hayden Wright, yes the numbers are great on Student Housing, which is why I invest in it. However, you either need to be 1. Local and handle this niche yourself or 2. Have a PM who knows Student Housing. The common conception about college students and housing is a day destroy the houses. I have been investing in student housing for close to 5 years now, and I have not had one house destroyed. In fact, if something stupid does happen, they call and let me know. The absolute key to student housing is setting up expectations when somebody moves in. If you give college students a piece of crap to live in, they will treat it as such and party like there's no tomorrow. If you give them a good house, they will treat it more like their parents house that they likely came from and not a party house. When they move into their nice house, you sit them down in the empty living room and tell them "Listen guys, college is great, have a blast but simply don't destroy the house." They have their parents cosigned so they know their parents will kill them if they do significantly damage the house. If you can't do this, you need a property manager that will do something like this and not treat these houses like any other rental. These kids do not know how to live in a house, their parents have done everything for them and for many kids this is the first time truly out on their own and not in the dorms.