A fast rising trend among big student housing landlords is to offer more amenities and perks to students. This strategy is meant not only to improve services, but also for landlords to differentiate their properties from other student housing, amid rising competition.
According to the Wall Street Journal, some of these landlords have partnered with corporate marketers to boost their property and provide an attractive range of services. Lucky student renters may find themselves being offered corporate promotions such as concert invitations and various discount schemes which include Uber rides. This unique partnership will reportedly allow these corporate entities to "integrate themselves more closely into students' lives." For landlords, the deal will help to ensure that they are a level up from other competitors.
In the report, WSJ mentioned that the student housing market has become very competitive over the recent years. Data from the apartment research company, Axiometrics, showed that the supply of student housing increased to a record 63,000 beds last year. This reportedly is 18,000 higher than in 2010.
Al Rabil, chief executive of Kayne Anderson Real Estate Advisors, told WSJ that the various amenities being offered usually has very little to "no upfront overhead." The Florida based Kayne Anderson Real Estate firm reportedly owns 20,000 student housing beds across the country. Some of the perks that the company offered in their off campus housing property near the Florida International University includes 2 hour free bike rides through the Zagster bike-sharing service, emails with $20 discount codes for Uber and free concerts courtesy of Interscope Records.
Meanwhile, other student housing landlords have opted to upgrade their properties with an infinity pool, fitness center, game room and concierge services, states CNBC. A prime example is a luxury apartment building called "The Standard," which is a student housing at the University of Georgia in Athens.
Brendan Coleman, managing director for the commercial real estate financing firm Walker & Dunlop, told CNBC that the student housing market is a "relatively young industry." However, institutional quality developers and investors are reportedly seeing the potential in student housing. Coleman added, "It's getting a little bit more competitive to go after the market share. We're seeing a recent trend really in student housing to be more like hospitality and hotel-style luxury."
It seems that landlords and developers are now trying to surpass other competitors, in a bid to gain a bigger slice of the student housing market.
