What COVID-19 College Closures Mean for Property Marketing
Coronavirus has disrupted the college housing industry. Find out how property marketing can help navigate the uncertainty as students return to campus. The coronavirus outbreak has impacted just about every part of the economy. Colleges and college housing have not enjoyed any sort of exemption. Some schools still aren’t sure they’ll reopen for physical classes in the fall. Even if universities open, many families have concerns about their ability to help students pay for it. Because of this, college housing property managers and owners face an uncertain future and a more competitive market. Learn more about marketing to college students during the COVID-19 crisis and its aftermath. Marketing to college students for property management impacted by COVID-19 Before a college marketing agency can predict the outlook for housing, it’s important to consider the forecasted state of college enrollment. Even if universities and colleges will open their doors for the fall semester, enrollment may diminish. A college consulting firm, Simpson Scarborough, conducted a study of prospective freshmen and reported some grim news: One in five of these students said they would have to delay college plans because of changes to their family finances. An additional 11 percent said that they were not yet certain if they would have to delay their freshman year or not. Over half of respondents reported negative changes to family finances, even if they could still attend school. For students who had already attended college but hadn’t yet graduated, over forty percent said their family had suffered financial setbacks because of the pandemic. One of the firm’s founders, Elizabeth Scarborough Johnson, said they conducted the study at the end of March. Sadly, she expected that the number of students delaying college would continue to rise. Out of all the current college students surveyed, 97 percent said that their own college offered online classes to replace the canceled on-campus schedule. At the same time, most of the students found online learning less satisfying than in-person classes. In fact, only five percent said that they they liked learning online better. To be fair, these students had initially signed up for a college campus experience, and the professors in charge of the classes may have had little experience teaching online before they urgently needed to adjust. In any case, Ms. Johnson said she believed this common attitude among students meant that students were eager to return to campus life as soon as they could. While the coronavirus has disrupted colleges right now, she believed things would return to normal once the crisis had passed. How can college marketing for student housing deal with coronavirus uncertainty? Nobody blames college housing for the coronavirus. At the same time, property managers need to focus upon a few aspects of their brand reputation. Even if it’s not their fault, some people will judge them on the way they handled the unexpected crisis. StudentHousingBusiness.com, an industry journal, spoke with private owners of student housing. Besides having concerns about the future, the property owners said that they urgently struggled with the problems of lease cancellations and maintaining healthy buildings. Lease terminations Right now, many private property managers haven’t appeared to demonstrate much flexibility when it comes to leases. For example, the news in Austin, Texas ran a story about parents that had to pay Landmark Properties $12,000 to terminate their daughter’s lease when pandemic-impacted finances made it impossible for her to attend college at Texas A&M in the fall. That sum amounted to rent for six months out of the twelve-month lease. As specified in the lease, the property management company gave the family an option to find somebody to sublet the lease. With the state of college enrollment, the parents failed to find anybody to sublet online. While Landmark was within its legal rights to stick to the terms of the lease, it certainly did not do its brand much good to get publicity from this sort of news story. While some property companies haven’t yet shown much flexibility with lease terminations, Student Housing Business found that many properties have tried to work with residents in other ways. For instance, some companies have waived late fees and deferred evictions and collections. Maintaining safety Meanwhile, property managers with current tenants should follow the best practices from the CDC guidelines. These may include closing down common areas and shared amenities, deferring nonessential maintenance, limiting office visits, and sanitizing all accessible areas multiple times a day. Both students and staff may need some additional guidelines to help maintain sanitary conditions. Communicating with all stakeholders Christian O’Lone serves as the regional property manager for DMG investments, a private student housing company. He said that his company has not been financially impacted yet because they attracted displaced students from on-campus housing to replace students who had left. In addition to taking safety measures, he says that it’s very important to communicate and educate staff and current or future tenants. Because of this, he believes that one of the largest impacts of the outbreak to property management will be increased activity on advertising platforms and social media to compete for residents and keep stakeholders in the loop. As an example, Peak Housing has been producing videos to instruct student resident in the right way to perform simple maintenance tasks, such as changing light bulbs and air filters. Tips for marketing to college students during and after coronavirus Even though college housing usually doesn’t house families, it’s considered part of the multifamily housing market. Andrew Bowen has worked in property management for this kind of housing for almost 30 years. Incidentally, he got his start when he applied to serve as a resident assistant in his residence hall at the University of Santa Barbara. He told RealPage that he felt particularly qualified to speak on the topic because his oldest child had to return home from the University of North Texas to finish his classes online. He also mentioned that he tried and failed to scour the lease to see if
How to Strategically Target Students for Your Apartment Community
Students have long been a key driver in the rental real estate sector, but how do you reach out to this crucial consumer demographic through an effective marketing campaign? Why should you target students? The very thought of renting to college students strikes fear in the hearts of some apartment community owners. The international real estate firm Joe Fairless acknowledges that student-focused rental properties “may end up with messes, parties, and careless behavior,” but this detracts little from the awesome power of the student demographic in the apartment complex sector. Because students are often far from home while attending college, they must find temporary housing either on campus or off. And as the price tag on dorm living continues to rise, more and more students are turning to off-campus apartments. Other benefits of specifically targeting college student renters include predictable periods of annual tenant changeover and frequent upfront rental payments from parents/guarantors. Tips for reaching out to college students Here are just a few things to keep in mind when targeting college student populations with your apartment community marketing campaign. 1. Consider Price and Value First and Foremost On the subject of cost, Multifamily Executive Magazine quotes Campus Advantage COO Scott Duckett, who points to the fact that many students grew up during the Great Recession. “That turned them into more cost-conscious consumers,” he says. Whatever the reason, today’s college students are more price-conscious than ever before. However, apartment marketers would be wise to keep class differences firmly in mind as well. In short, different students will have different lifestyle expectations, but they will all want to get the most apartment value for their buck. 2. Remember the Importance of Location Is your apartment community close to campus? Is it close to public transportation or trendy shops, bars, or entertainment options? Students often get around on foot, so be sure to highlight location in your marketing materials. 3. Mitigate the Risk of Property Damage Because student renters are typically less fussy than other consumer demographics, they may be perfectly satiated with older appliances and more basic decor. This can significantly reduce your overhead costs. To help protect your property, be sure to collect a reasonable deposit and clearly explain your deposit policy to every tenant. 4. Offer Key Amenities Basic and practical amenities such as fast Internet and dedicated parking spaces may be deal-makers for some students. Other perks that commonly attract students range from on-site fitness centers to secure bicycle storage. 5. Take Advantage of On-Campus Advertising Depending on the specific policies of the colleges/universities near your property, you may be able to advertise on-campus and/or on official college/university websites. This is a great way to specifically target your consumer base and save big on your overall marketing costs. 6. Focus on Social Media Multifamily Executive Magazine echoes countless researchers in declaring social media the absolute best place to reach the modern-day student. Not only do students use social media heavily, but they tend to respond positively to social media marketing. For more information If you want to learn more about the value of college student renters and how best to target them in the consumer marketplace, contact a skilled and knowledgeable apartment marketing and property development marketing professional at Bigeye today. A foreword-thinking agency with an eye on the future, Bigeye has a proven ability to connect with students of all ages.
What College Renters Really Want from Apartment Communities
Often in need of relatively short-term housing while completing their studies, college renters have long been key drivers of the apartment rental market. But what, exactly, are they looking for in an apartment? From short-term tenet agreements to increased risk of property damage, renting to college students has its obvious pitfalls. However, college towns remain one of the best markets in the United States to own rental property. This is particularly true of states, like Indiana, in which people generally own homes rather than rent. Forbes Magazine points to Indiana as a prime example of this fact. Although the percentage of renters in most Indiana counties is less than 25 percent, in Monroe County (home to Indiana University at Bloomington) that rate rockets to approximately doubles to 48 percent. So what can you do to capitalize on the key college student rental sector? Here’s a brief look at what college renters really want from their apartment communities. Cost, location, and overall value As the cost of a college education continues to skyrocket, students are generally wise beyond their years when it comes to choosing rental apartments that are reasonably priced. Surveys of students and recent graduates have increasingly shown that on-campus dorm living has become incredibly expensive. In light of this fact, more and more students are turning to off-campus apartments as a way to stick to their budgets. In addition to overall apartment cost, college students list location as one of their top concerns, indicating that they may be willing to pay a bit more for a place that is close to campus. Security, home technology and access to public transportation After coast and location, renters are highly concerned with security and convenience, ranking gated access high on their list of must-haves. They also value high-tech security measures such as app-controlled door locks. Other home technology devices and infrastructure that renters list as important include built-in USB charging outlets, smart digital thermostats, and Amazon lockers. Among renters who must live a considerable distance from campus, the convenience of nearby public transportation is also a top concern. According to Apartment Guide, 31 percent of renters are seeking properties with shuttle service to public transportation. Specific amenities Reaching out to a consumer base that tends to value practical concerns, apartment communities can forget about frivolous incentives. Apartment Guide points out that lease-signing gifts such as free iPads or gift cards may have effectively filled vacancies in the past, but today’s students are looking for something far more substantial. However, there are many apartment amenities that might be potential deal-breakers regardless of their inessential nature. With 92 percent of renters listing it as a priority, air conditioning is an amenity that many renters simply won’t live without. Other top amenities, such as automatic dishwashers (86 percent) and in-unit washer/dryer combos (77 percent) are equally practical in nature. When it comes to less practical amenities, renters particularly value outdoor spaces such as patios, balconies, and rooftop terraces. In addition to these key on-site features, apartment complexes can benefit from close proximity to a variety of off-site amenities. For example, 32 percent of renters want to be close to a café or coffee shop while 24 percent of renters want a library nearby. For more information If you want to learn more about the top concerns of renters in the college environment, you should talk to an agency with specific expertise in the fields of apartment marketing and resident advertising. A highly innovative and forward thinking marketing firm, Bigeye has countless ideas when it comes to reaching college students in the residential housing marketplace.