How to Optimize Student Housing Assets to Achieve Maximum ROI
A lot of people are not even aware of the prospects available to them through their student housing.
And no, this is not about the physical student properties. We’re talking about the amount of data that they give off, and how you can use it to optimize your multifamily asset and portfolio. See article on multifamily property photography tips.
This has only just become possible in the last decade as a lot of software companies are beginning to come up with ingenious ideas for presenting data with such powerful insights into the things that are working out and those that are not and the subtle adjustments that are needed to boost NOI. This fine-tuning is usually done with a good dose of intuition and experience by the multifamily property managers and owners. Even though these virtues are still important, they have now being enhanced by different software that don’t really require spreadsheets or those simple KPI measurements used in the past.
Data insights will help you make smarter multifamily investment decisions
There are different asset optimization solutions out there that can help property managers gain the requisite insight required for smarter apartment investment decisions, thereby maximizing their property’s performance. Also Read Take a Crash Course in Philadelphia Student Housing Investments
We’re going to go into more details about how the data helps you provide solutions to important questions in later articles.
According to Joe White, owner of Grow Property Management, in Philadelphia, “Where asset optimization is being fully exploited in some industries, we find there’s a long way to go in the property management business, and particularly in the student housing, multifamily and apartment rental markets”. He also stated that “There’s a fear factor – a sense that a property management company needs to be a statistician or specialist to use these tools, and that’s just not true. They’re designed to be used by property managers and property owners, and in fact the whole point of them is to give landlord tools and a lens into property markets and performance without special training or knowledge.”
Student housing asset optimization
We often hear statements like “multifamily student housing is different”. However, when analytics is involved, there’s really no difference. Student housing is just as ready for translation and capture as the ones linked to multifamily or any property investment sector.
According to Joe, their accuracy and objectivity are some of the things that make asset optimization so great. In his words, “real estate investment acumen is great, and it’s important, but what even a savvy property manager might conclude at first glance isn’t always what the numbers show to be the best decision. Pricing rents is a great example. Sometimes the asking price that will drive optimal bottom-line revenues for a property isn’t what your gut feel would tell you. And only a computer algorithm can crunch market factors, inventory, current and future occupancy forecasts, seasonal leasing history and other criteria to arrive at the perfect price for every bed, every day.”
There’s really nothing to fear: these tools were made for you. We have several educative articles about data analytics, revenue management, business intelligence and lots of other great solutions for enjoying unprecedented performance on your student properties, on this blog for your learning pleasure.