Off-campus student housing expense survey


CCIM.com has an interesting article about student housing operating expenses.  While renting to students can pose challenges, keep in mind the movie animal house.  The rentals can be very predictable buildings are usually pre-rented for the next school year and the leases are often a group lease with rents guaranteed by the parents.  The area just north of the UW campus is predominately rental, but opportunities to purchase student rentals can be found as far north as 65th and west into Wallingford .     

       

New Study Looks at Off-Campus Student Housing

Posted October 19th 2011

 Approximately 53.6 percent of rental income from off-campus student-housing properties is spent on total operating expenses, according to a new benchmarking survey from the National Multi Housing Council’s National Student Housing Council. Other top expense categories include total compensation (11.9 percent), utilities (11.0 percent), taxes (9.0 percent), and maintenance and repairs (5.2 percent).

Based on property age, total operating expenses were slightly lower for properties built since 2003 (52.3 percent) compared to 54.1 percent for properties built between 1998 and 2002 and 54.6 percent for properties built prior to 1998. Compensation was higher for older properties (14.0 percent of expenses) compared to 10.9 percent and 11.0 percent respectively for properties built since 2003 and properties built between 1998 and 2002.

The Northeast region spends significantly less on total operating expenses — 39.5 percent — compared to 56.6 percent in the Midwest.

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