How to Price Student Off Campus Housing

[Russell Caraotta]

Greetings from snowy Western NY!

What is the optimal pricing strategy for off campus housing to a college student? I see two approaches:

1. If the student stays on campus, housing ranges from $7200 to $12,000 per year at state schools depending on the number of roommates and other "options". Included in the fee is internet, heat, electric and laundry.

2. However, if renting a 3/3 duplex to six students for $1200 per apartment (like in the non-student world), the total annual rental income is $28,800. Using the approach that colleges use (that is, charge by student instead of living quarters), the rental income for 6 students paying on average $8200 per year is $49,200.

Is anyone using the second approach successfully? Is it a valid strategy for off campus housing? Any other strategies? Thank you!