Why Investors are Flocking to Student Housing

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ONCE CONSIDERED a niche subset of the rental housing sector, purpose-built student housing (PBSH) has matured into an institutionally acceptable asset class. A large and increasingly college-bound population of young adults, set against a backdrop of underinvestment in on-campus housing, have together created a housing shortage for college students in many markets. Developers have been seeking to fill this with off-campus student housing.

The key differentiator between PBSH and traditional apartments is the leasing model. PBSH leases by the bed, not the unit. If a roommate decides to drop out at winter break, the remaining roommate — and his or her parents — are not on the hook for the entire amount of the unit’s rent, only for their respective portion. A typical unit consists of three bedrooms and three bathrooms, as well as a shared kitchen and living-dining area.

Posted By: Pat Nelson / Dec 26 2017


Credit Score Hurdle Harder To Clear For Apartment Renters

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Though millennials are flocking to the city to be closer to work, research shows the more competitive the market, the better the credit score that is needed to secure an apartment.

Many younger residents are not renting apartments solely on their own.

Posted By: Pat Nelson / Dec 20 2017


Roommate Woes and Tenant Retention


Roommate conflict was the number one reason I chose not to renew my lease at the end of that long, horrible, dog food smeared year.

Your resident retention rate is tied to your residents’ ability to feel comfortable and secure in their homes.

Posted By: Pat Nelson / Dec 18 2017


Record Investment in Student Housing in 2018?


2016 was a record year for student housing in the US. $10 billion was poured into investment grade student housing projects in the US. It was a 64% increase over 2015 investment numbers.

One report suggests 2017 totals will equal 2016’s torrid levels. Is there more gas in the tank for the student housing investment sector in 2018?

Posted By: Pat Nelson / Nov 14 2017


Why You Need To Add Online Tour Scheduling To Your Website Today


And when you visit the salon as often as I do, you need to remember when you’re supposed to be there. Thankfully, my stylist offers online scheduling. I just visit her website, see when she has openings and book the time that work best for me. I also get helpful email reminders about upcoming appointments.

When I got one of those friendly reminders this weekend, it got me thinking. Surely other types of businesses can benefit from online scheduling. Like, say, apartment companies…

Posted By: Pat Nelson / Nov 01 2017


What Millennials Want: How to Attract Millennials to Fill Your Apartment Vacancies


To fill open units and reduce vacancies, you need to know what millennials look for in apartments to rent, then exceed their expectations. While millennials have somewhat different values and preferences than other tenants, with a few tweaks you’ll be able to adjust your approach to attract them.

Many millennials are long-term renters who are not prepared to buy a home anytime soon but want flexibility in their living arrangements in case they need to move for work or a relationship. They might have a high amount of student loan debt and need predictable expenses so they can set aside income to pay their loans.

Posted By: Pat Nelson / Oct 27 2017


HNW Investors Love Student Housing, Though Attractive Deals Are Getting Harder to Find


Private investors, including HNW investors and family offices, accounted for the largest transaction volume in U.S. student housing from 2010 to 2016.

When it comes to real estate investments, high-net-worth (HNW) individuals and family offices have been going to school: in recent years, more of them have been adding student housing to their portfolios.

Posted By: Pat Nelson / Oct 26 2017


Student Housing Sales Speed Up


The volume of sales in 2017 is likely to get a lot closer than seemed possible to last year’s record-breaking volume.

Investors are making up for lost time as 2017 comes to a close, buying and selling a high volume of student housing properties.

Posted By: Pat Nelson / Oct 19 2017


Property Developer Helps Answer Utah’s Increasing Need For Student Housing


In Utah, you can’t throw a rock without hitting a college student. In 2013, college students made up over 6 percent of Utah’s population, ranking the state in fourth place in terms of student-to-population ratio. And more students are coming every year, bound for schools in the heart of tech-mecca Silicon Slopes. In 2016, enrollment at public universities in Utah increased by over 4,739 students, which was on top of the previous year’s increase of 3,453. By 2024, Utah is projected to gain 50,000 college students, reaching 226,000 students.

With this projected influx, it begs the question: Where are all these students going to live?

Posted By: Pat Nelson / Oct 18 2017


8 Apartment Amenities You Didn't Know You Needed


More people than ever are renting rather than owning, with more than 35 percent of Americans living in rented housing as of 2014, according to the National Multifamily Housing Council. To compete with the growing number of rental opportunities in the U.S., many apartment communities are upping the ante with luxurious amenities that make living easier, more convenient and more fun. While resort-style pools, movie theaters, and recreational spaces are becoming the standard, many places are going above and beyond to appeal to residents looking to rent in the area. Here are eight apartment amenities you never knew you needed—until now.

Posted By: Pat Nelson / Oct 06 2017


Top 10 Tips for First-Time Landlords


I was once a first-time landlord but now I have over 10 years worth of experience investing in real estate and over 15 years of lending experience for real estate transactions.
During those years, I have seen and have personally made some serious mistakes, so I would now like to offer some landlord tips. My hope is that this article will educate you so that you don’t make the same mistakes as I have. Here are my top 10 landlord tips.

Rent is your revenue. It’s amazing how many landlords are not aggressive in pursuing rent and late charges. It’s sometimes a good idea to work with people who generally need help … if they communicate with you.

Posted By: Pat Nelson / Oct 03 2017


11 Questions for Determining if You Need a Property Management Firm


While every investor's situation is different, there are certain scenarios and factors that typically pre-dispose owners one way or the other. The following questions are designed to help you determine if you should consider hiring a property manager.

If you are close you may be able to make the regular visits required for maintenance, inspections, collections, etc., otherwise the further you live the higher your travel time and expenses will be. The larger the distance the more temptation there is to not keep a close eye on things, and that can be a recipe for disaster. You should plan making monthly scheduled visits and there is always the potential for a middle of the night emergency call that requires your immediate attention. In the long run, is this feasible for you?

Posted By: Pat Nelson / Oct 02 2017


5 Basic Tips for Investing in Real Estate


If you’re just beginning to invest in real estate, you’ll find that there’s a lot to learn. Real estate investing is more complicated than investing in stocks because of the financial, legal, and extensive due diligence requirements involved. That’s why it’s a good idea to give yourself a solid education before you purchase your first investment property.

However, before you get your advanced degree, it’s a good idea to familiarize yourself with the fundamentals. To that end, here are 5 basic tips for investing in real estate.

Posted By: Pat Nelson / Sep 26 2017


Use These 6 Strategies to Think Like a Millennial And Pitch Like a Pro


The market is no longer dominated by Boomers. Millennials have risen to the top of America's population ranks according to recent Pew Research findings, amounting to more than 75.4 million individuals and outpacing the slowing 74.9 million-strong contingent of 51-to-69-year-olds.

Millennials are much like their senior counterparts in their fight for identity in an ever-expanding, conflicted world. But as the younger generation grows, the remaining demographic is forced to adapt to and adopt evolving approaches to commerce and the 'Millenni-lingo' that drives PR and marketing. Whether you're just starting out or looking to advance your enterprise, here are six tips to survive and thrive in the info-overload era.

Posted By: Pat Nelson / Sep 22 2017


Why Real Estate Investing Is Among the Best Ways to Get Rich


There are many different ways to get rich in the vast variety of investments available to people nowadays. One of the most popular ways to get rich has always been real estate investing. Investing your savings or applying for a mortgage to invest in real estate properties is a financially sound investment that offers little to no risk in most cases. The concept behind the success of real estate investing is that real estate is a commodity that has an ever-increasing demand rate. Overpopulation and immigration in the US have boosted the real estate market because of increased demand nationwide.

This is why real estate is one of the most reliable and thus best ways to get rich. It is just safe. Anyone with little experience in dealing with tenants can become a successful property owner and landlord. The possibilities of making profit through return on your real estate investment can be through cash flow (rent), real estate appreciation, easy loan payments, and expansion to a multiple properties real estate investing business.

Posted By: Pat Nelson / Sep 20 2017


5 Signs You’re Ready to Invest


Investing isn’t for everyone: It requires risk tolerance, not to mention money.

It is necessary, though, if you want to turn small, regular savings contributions into a healthy retirement nest egg. Without investing, your savings will actually lose money over time to inflation.

Posted By: Pat Nelson / Sep 07 2017


10 Tips for Buying Your First Rental Property


Real estate has produced many of the world’s wealthiest people, so there are plenty of reasons to think that buying a property is a sound investment. But like any financial transaction, it’s better to be well-versed before diving in with your hundreds of thousands of dollars. Arm yourself with the information below before starting a new career as a real estate tycoon. (See also: Tips for the Prospective Landlord.)

Do you know your way around a toolbox? How are you at repairing drywall? Or unclogging a toilet? Sure, you could call somebody to do it for you, but that will eat into your profits. Property owners who have one or two homes often do their own repairs to save money. If you’re not the handy type and you don't have lots of spare cash, being a landlord may not be right for you. (See also: Becoming a Landlord: More Trouble Than It's Worth?)

Posted By: Pat Nelson / Aug 29 2017


Looking for a Place to Stay for the Eclipse? We’ve Got You Covered


If you’re like us, you’re used to the idea that the 70s were 30 years ago. But time keeps ticking, and soon 1979 will be a 40-year-old memory. That year brought us Chris Pratt. M*A*S*H was still running. But of most interest to us now: 1979 gave the contiguous United States the last total solar eclipse of the 20th Century.

But wait, there’s more! “The total solar eclipse on Aug. 21 is particularly rare because it's . . . the first continent-wide eclipse to be visible only from the United States since 1776.” Next week, we’ll be able to experience the same exclusive phenomenon our founding fathers did during the Revolutionary War. What a lucky connection!

Posted By: Pat Nelson / Aug 16 2017


Universities Are Increasingly Asking Private Developers To Build Their Student Housing


As universities look to attract and retain students in a drastically more competitive landscape without blowing their budgets, they are increasingly turning toward the private sector and public-private partnerships to address their student housing needs.

These partnerships vary greatly in their approach, depending on the university or system they are applied to and the development partner the school brings in.

Posted By: Pat Nelson / Aug 16 2017


Dorm Room Decorating: Must-Know Tips From College Students

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You may think a bland dorm room holds no decorating potential, but just wait. We have savvy design and storage tips to turn your new college digs into home sweet home.

Dorms are what you probably picture when you think about living on campus: bunk beds, band posters, and shower caddies. While dorms offer the most “typical” college experience for new students, they come with some pretty big drawbacks, too.

Posted By: Pat Nelson / Aug 11 2017


3 Types of College Housing: Which Is Right for You?

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Not all campus housing is created equal, but there are some distinct advantages (and disadvantages) to each type. Which one is right for you depends entirely on your needs as a student . . . and as a roommate.

Dorms are what you probably picture when you think about living on campus: bunk beds, band posters, and shower caddies. While dorms offer the most “typical” college experience for new students, they come with some pretty big drawbacks, too.

Posted By: Pat Nelson / Aug 10 2017


How Apartment Renovations Can Improve ROI

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Rehab market has changed, but opportunities for creating good ROI through apartment renovations still exist.

As rents become more competitive and apartment inventory approaches its peak this year, the case for rehabilitating older properties in some markets may be strengthening.

Posted By: Pat Nelson / Aug 02 2017


Higher Construction Costs Not Deterring Multifamily Developers

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Construction costs may be on the rise, but multifamily is still one of the best bets these days, according to developers.
“The cost of construction has gone up a lot,” Cypress Equity Investments Chief Financial Officer Alla Sorochinsky said at Bisnow’s Big West Coast Multifamily Event on July 20 in Los Angeles.

Posted By: Pat Nelson / Jul 27 2017


From ‘Animal House’ to ‘Recession-Proof’


Student housing has graduated into a sought-after real estate class. More institutional investors are looking at student housing as a viable investment thanks to rising demand that continues to outweigh the current supply.
Though the sector has been dubbed “recession-proof” because of its ability to withstand the economic volatility of the financial crisis, student housing was not always popular among investors.

Posted By: Pat Nelson / Jul 21 2017


Millennials boosting student housing sector

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More millennials are pursuing higher education than ever before and the demand is fueling the student housing sector.
A recent TH Real Estate report said student housing attracted $9 billion in investment last year and demographic trends will continue to support the sector through 2017. And many states are cutting higher education funding, making room for investors to provide on-campus housing that schools are not able to afford, Multi-Housing News reports.

Posted By: Pat Nelson / Jul 20 2017


Is There an Easy Way to Manage a 1031 Exchange?

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The 1031 Exchange allows landlords to sell their highly appreciated properties without paying a dime in capital gains taxes. It sounds almost too good to be true, so it must be complicated, right?
It can be, but it doesn’t have to be.
“One of the biggest challenges people have with a 1031 Exchange is the short timeline that the IRS gives them to find a replacement property,” Nelson Brothers Professional Real Estate principal Brian Nelson explains in the final installment of his “Ask the Brothers” video series. “So a lot of people feel trapped.”

Posted By: Pat Nelson / Jul 10 2017


What is a 1031 Exchange?

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Anyone who owns rental properties that have significantly appreciated in value and is now looking to take advantage of those gains should become familiar with the 1031 Exchange.
A 1031 Exchange, also called a like-kind exchange or a Starker exchange, allows a property or a business owner to defer capital gains taxes incurred on the sale of a property as long as that money is invested in another property or properties. A 1031 Exchange is applicable only for investment or business property, not personal property.

Posted By: Pat Nelson / Jul 03 2017


What is Meant by Cap Rate?

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One thing that is commonly asked by real estate investors is what all the different commercial terms mean? Such as net operating income (NOI), cash on cash, internal rate of return and cap rate. Knowing these terms and how to calculate them is essential to anyone who invests in real estate. This is especially true for new investors.
If you are learning or if you are a bit unfamiliar with where to start, understanding real estate terminology is the best way to begin. Cap rate is one of the most important concepts to understand. Capitalization rate is used to estimate investor’s potential return on their investments. Knowing the cap rate equation and how it can work to provide for you the best return on your investment will help you make smart investment choices. So let’s get started!

Posted By: Pat Nelson / Jun 29 2017


The 3 Main Property Valuation Methods


One of the most important features of owning a rental property is its value. Before we delve into the main property valuation methods, it’s imperative to understand the importance of a property’s value.
Property valuation is a key concept in real estate investing. If you don’t know the value of an investment property, you won’t be able to know how much rent to charge or how much to pay in property taxes. Estimating these two figures, along with others like property insurance, is not possible without knowing a property’s value.

Posted By: Pat Nelson / Jun 27 2017


How Does Depreciation Work?


One of the biggest advantages to investing in real estate are the tax benefits. Because the IRS allows the cost of income-producing property to be recovered through yearly tax deductions, in many cases it’s entirely possible to create a monthly cash flow without paying any tax on it.
How is this possible? A big part of the equation is depreciation, a non-cash – or paper – deduction that allows you to spread out the cost of buying a property over decades.

Posted By: Pat Nelson / Jun 26 2017


The Growing Student Housing Industry

Growing Student Housing Industry

Universities can be economic engines, and student housing has become a big player in commercial real estate as a result, driving investment and development.
The industry has changed from friends-and-family capital to being very institutional, according to Pierce Education Properties CEO Fred Pierce. This year, student housing has doubled the investment sales of any year in its history.

Posted By: Pat Nelson / Jun 23 2017


Boomers Look to Real Estate to Afford Retirement

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As many as 10,000 baby boomers retire daily. Members of this generation are increasingly looking to real estate to diversify their retirement portfolios and boost returns.
Many boomers have realized that their retirement plans are not sufficient and have turned to alternative investments, such as real estate, to compensate.
About 30 percent of baby boomers have no retirement savings and one-quarter have less than $50,000 saved, according to research by GoBankingRates.

Posted By: Pat Nelson / Jun 22 2017


What is I.D.E.A.L.?

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While it would be a stretch to say that any investment opportunity is “perfect,” Nelson Brothers Professional Real Estate is confident in stating that its goals for every investor are “I.D.E.A.L.” “That’s a clever acronym that we use to demonstrate the five different ways that we can grow an investment simultaneously,” Principal Brian Nelson said.
Nelson laid out those five core benefits during the fourth segment of his “Ask the Brothers” video series, designed to explain the company’s business model and to address common questions from investors.

Posted By: Pat Nelson / Jun 19 2017


Student Housing ‘a Global Asset Class’

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Some of the world’s richest people and sovereign wealth funds are turning their attention to student housing, with the increasingly luxurious and expensive purpose-built accommodation becoming regarded as a must-have part of their investment portfolio.
Investor demand for student accommodation blocks is so strong that some potential buyers were forced to stand during presentations at a student housing investment conference in a ballroom in Covent Garden, central London last month.

Posted By: Pat Nelson / Jun 14 2017


Student Housing Sales Outperform Rest of Market

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Commercial real estate investors are increasingly keeping their wallets in their pockets, waiting to see where interest rates will go, for prices to come down and for more properties to come on the market. That’s happening in almost every sector, except for student housing.
Sales of student housing properties beat the trend in the rest of the market in the first quarter. If investors keep buying and selling student housing at this rate, they will match the record-setting acquisition volume of 2016, despite a long list of larger market challenges that could have slowed the pace of transactions.

Posted By: Pat Nelson / Jun 13 2017


What is Professionally Managed Real Estate?

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In a Gallup poll released in April 2016, Americans selected real estate as the best long-term investment opportunity, far ahead of stocks, bonds, gold, and savings. And while we’ve established the benefits of investing in private student housing, most people lack the funds or expertise to buy and manage their own apartment properties.
A professionally managed real estate company, however, affords you the security of pooling your money with many other investors in a diversified portfolio, while offering asset preservation and capital appreciation, as well as a monthly cash flow through dividends. This can all be accomplished in a simple and efficient transaction.

Posted By: Pat Nelson / Jun 12 2017


2016 a Record Year for Student Housing Investment

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As millennials’ pursuit of higher education fuels demand for student housing, institutional investors — including private real estate funds, pension plans and sovereign wealth funds — are increasingly stepping in.
A wave of capital flooded the industry last year. Investors poured more than $10 billion into U.S. student housing assets in 2016, making it the largest transactional year in history, according to ARA Newmark Student Housing Group’s 2016 Market Overview report.

Posted By: Pat Nelson / Jun 06 2017


How to Select a Student Housing Investment

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Once you’ve recognized the benefits of investing in student housing, the next logical question is: How does one go about it? Nelson Brothers Professional Real Estate co-founder and Principal Brian Nelson shared his company’s successful business model in an “Ask the Brothers” video series.
“What a lot of people don’t know about commercial real estate is that the primary evaluation tool is the cap rate, which is the net operating income divided by the sales price,” Nelson explains.

Posted By: Pat Nelson / Jun 05 2017


Why Invest in Student Housing?

Invest in Student Housing

Can you remember a major university folding its tent and going out of business? Can you imagine a scenario in which Notre Dame, the University of Oregon or Utah State University suddenly just disappear?
Neither can Brian or Patrick Nelson, who have grown Nelson Brothers Professional Real Estate to a $500 million company in 10 years by specializing in the niche market of private student housing. Brian Nelson recently filmed an Ask the Brothers educational video series to explain the company’s business model and to address common questions from investors.

Posted By: Pat Nelson / May 19 2017


Investors reap rewards of University Gardens renovations

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Nelson Brothers Professional Real Estate recently completed a renovation and re-syndication of the historical University Gardens student apartments in Salt Lake City that helped to more than double the number of tenants and increased rental revenue by 76 percent. The renovation maintained the authenticity of the property’s historical exterior while bringing the interior of the units in line with the contemporary standards that today’s sophisticated college student has come to expect.
Posted By: Pat Nelson / May 15 2017


900 Factory student housing complex approved for expansion

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Nelson Brothers’ 900 Factory deluxe student housing complex near Utah State University has been approved for expansion.
The Logan Planning Commission last week conditionally approved the third phase of construction, which will add on to the existing six-story, above-ground parking structure and build six floors of apartments to the east of the current building. The proposal includes 48 apartments with 136 beds and 159 parking stalls.
Posted By: Pat Nelson / May 03 2017


Millennials: Not Your Average Renters

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For decades, owning a home has been a key component of the American dream. However, millennials are all about disrupting trends, and housing has been no exception. Millennials have chosen to rent longer than their Generation X or Baby Boomer counterparts for many reasons—such as high student debt, an emphasis on flexibility, and a penchant for convenience. These unique reasons have made millennials a different type of renter and a market you should definitely not ignore.
Posted By: Pat Nelson / Jun 13 2016


Adapting your business model to meet millennial demands

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As the newest generation with significant buying power, millennials are changing the way businesses interact with their customers. Meeting the requirements and expectations of millennials means not only high revenues but also increased loyalty and referrals through social media as happy customers tell their friends about good experiences. Here are a few of the things millennials value and how you can reach them authentically.
Posted By: Pat Nelson


Student Housing a Profitable Niche

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As off-campus housing changes communities, asset-rich investors vie for the best properties.

Posted By: Pat Nelson / Jun 09 2016