It’s never been a more exciting time to be in the student housing industry. In the last 20-plus years, student housing development has exploded, reaching a pinnacle in the last few.
While the industry has normalized in recent months, the business approach continues to evolve. Changing market conditions dictate performance visibility down to the bed level and pre-lease percentage/forecasting from one semester to the next; no longer can stakeholders operate on hunches or the way it’s always been.
Multifamily has relied on asset optimization to maximize performance, and now student housing’s evolution begs for the same sophistication of all operational and financial aspects. Monitoring performance through a wealth of industry data and projections is essential to profitable decision making.
Asset optimization tools that focus on market analytics, business intelligence and revenue management are taking the student housing industry to the next level:
Solution 1: Market Analytics
Taylor Gunn, who analyzes student housing data for AXIOMetrics, says that performance trends not only vary by individual asset and location, but they also differ by university. In other words, what strategy works for one doesn’t always work for the other. Analysis of historical trends, forecasts and supply and demand drivers for purpose-built housing and student competitive properties are necessary to maximize market potential.
Owners, operators, developers and investors now have the ability to visualize important market data to suit specific needs through AXIOMetrics’ AXIOStudent. The leader in student housing market research has real-time university specific data from more than 300 universities that is enabling decision makers the clarity for buying, building, financing and managing today’s properties.
Solution 2: Business Intelligence
Student housing operators should know the scores of their properties, and business intelligence, just as it’s done in other rental housings segments, is providing the numbers. Business Intelligence affords operators to know where their properties and portfolios stand to quickly pinpoint a plan of action.
Data can be pulled from multiple sources to generate daily updates at the property level. It’s a fully automated, 360-degree view that provides insight into operational, marketing, demographic, facilities, screening, accounting and affordable compliance.
Solution 3: Revenue Management
Revenue management, which has been around nearly two decades, is credited as a vital ingredient in the recipe for optimizing asset performance. Its adoption in student has gained momentum in recent years as owners and operators are learning that they can count on technology to make better decisions and drive higher profits in leasing and rents.
Revenue Management can do a lot more than raise and lower prices; it can provide opportunities to improve revenues, increase pricing controls and enhance student housing pricing decisions based on pure analytics.
The tools are part of RealPage Student Housing Property Management software.
Download this free eBook to find how you can make them work for your student housing portfolio!