Needs for amenity packages get real including the best that technology has to offer
Over the last five years the student housing sector has witnessed an overflow of amenities in properties and this trend has continued to this day. One is likely to see amenities like rock-climbing walls, lazy river pools and spas among others. There’s actually no real demand for such amenities although many developers seem to believe that students find these fancy things, cool. That’s not the case though. One can expect good sense to prevail and developers will realize before long that such amenities only end up escalating the construction cost which finally means that only affluent students are able to afford such housing which is not how it is supposed to be.
Technology Based Facilities are in Demand
Owners of student housing units need to take up the matter with property developers and offer them some insights into student preferences in a house. The students don’t come looking for the ultimate in luxury and high end amenities and certainly not if it inflates the cost of their lodging. As young people, they are more interested in working hard to get good grades in whatever line of education they are pursuing. What they really want in their rooms is the best Internet and information technology facilities as they usually have three to five devices connected to the Internet at any given time.
Owners of student homes need to understand that these students get annoyed when Internet service is inconsistent and they want every unit to be well-equipped for wireless Internet connections. Property owners must avoid buying cheap Internet services and stop considering these as expenses more than investments. Internet services are a vital necessity today especially for students who rely on such services to augment their knowledge base. Therefore, student home owners should make efforts to understand Internet technology better and learn more about the service providers. They need to make sure that they are providing their tenants with top-quality Internet services rather than fancy luxury amenities.
Investors Getting Wiser on Student Housing
Today, commercial mortgage lenders look at the student housing sector more favorably as they’re now better educated on how properties located close to large, tier-one universities usually show strong net operating income growth over time. This realization has helped to create premium pricing for such properties and yet, up to some years back, the average property buyer was unwilling to offer commercial bridge loans for student housing properties. They didn’t show any interest even in strong locations in markets that serve tier-one universities, let alone markets close to tier-two universities.
How far the perception of commercial mortgage lenders about the student housing market has changed can be understood from the large number of student housing firms that now take a more serious approach to owning and managing their properties than they did a few years ago. In fact, these investors now look around for meaningful information on the performance of existing student housing properties as well as the new developments that are in the pipeline. There is realization among lenders offering commercial bridge loans that student housing is an attractive asset class that performs well even in tough economic times. During the Great Recession of a decade back, it was the student housing sector that was least affected compared to the overall real estate market in the US.
Park West Capital is among the commercial mortgage lenders that look favorably at the student housing sector and offers its commercial bridge loans to investors interested in the sector.