As students return to campus this fall facing concerns about the cost of higher education, many are eager to find convenient off-campus housing that meets their needs and their budget. It’s a feat that’s getting harder each year, as rents continue to climb for purpose-built student housing.
To accommodate growing demand and attract renters, developers have been doubling-down on “bonus” amenities like on-site coffee bars, free 24-hour laundry access, BBQ pits, yoga sessions and fitness centers. But adding amenities like these is costly, especially at a time when property owners are already struggling with the higher cost of labor, supplies, maintenance, insurance and interest rates. Not to mention the fact that these trendy perks don’t necessarily provide a direct return on investment (ROI).
While operators may feel they have few other choices for increasing (or even maintaining) profitability, there are a number of proptech upgrades that can both reduce operating costs and increase net operating uncome (NOI) by offering a modern, high-tech living experience for students. And unlike trendy amenities, investing in a robust digital infrastructure and property technology can have a direct, measurable benefit for your bottom line.
Here are just a few options for making student housing smarter, safer, more affordable and more profitable.
- Safe, secure living. Safety and security are top priorities for prospective residents and their parents, especially considering that for many, this is their first time living on their own. Smart safety solutions like key card, mobile or biometric scanner access to gates, shared amenity spaces and unit door locks are convenient and provide peace of mind, but also help to reduce the risk of vandalism, lost keys, property owner liability and insurance premiums. Aside from the risk of personal safety and property crime, severe weather and natural disasters can be hazardous in many parts of the country. Having technology in place to help residents feel safe and communicate urgent information can be a big selling point. Direct messaging and real-time safety notifications via mobile app can be critical in an emergency, and with the right network infrastructure, alerts can even be tailored to individual units or situations based on GPS location on the property.
- Smarter, more efficient maintenance. Keeping up with preventative maintenance (PM) on in-unit appliances and HVAC systems can be time consuming. Modern proptech allows the implementation of smart appliances that alert when filters need to be changed or other service is required. The use of built-in sensors and troubleshooting technology can detect out-of-spec conditions and aid in repairs. Connected water leak detection tools and smart metering can help drastically reduce the risk and extent of water damage in the event of a leak in kitchen and bathroom fixtures. Aside from helping to avoid major failures and unexpected replacement, these smart PM tools can help optimize staff time so that they can address what’s needed before it’s too late but also without doing more than is necessary at the time. When PM management tools are tied into a resident portal, repair request tickets are funneled directly into the maintenance work queue. This eliminates phone call delays, ambiguous handwritten notes and the risk they get lost in the shuffle, which results in faster response time and higher resident satisfaction.
- Energy efficiency and sustainability. Today’s students are more eco-conscience and concerned about climate change than any that came before them. Those concerns drive their priorities and purchase decisions. A recent Apartments.com survey found that three out of five renters actively seek environmentally friendly properties, and 40 percent say they wouldn’t even consider renting an apartment that doesn’t offer sustainable features. Solutions like smart meters, programmable thermostats, intelligent lighting and even automated window blinds can help students manage utility consumption, save money and reduce their carbon footprint. Perhaps even more important, they also save property owners money: nearly 65 percent of multi-dwelling unit (MDU) properties with at least one smart device installed can expect 10 percent to 20 percent in operating expense savings.
- Centralized management. One of the biggest challenges in student housing is the seasonal crush of transitions, especially in the fall and spring. With so many people moving in and out all at once, the process often requires additional staff and can still overwhelm the front office, leaving students with a negative first impression. Deploying a smart admin/resident portal built for high-volume MDU properties can alleviate a large portion of the burden and empower residents to self-manage their own account and ancillary services. Aside from facilitating rent payments, robust MDU portals allow students to submit maintenance requests, pay for premium Wi-Fi bandwidth, laundry usage and more, all in one spot, 24 hours a day. This is both convenient for residents and a huge time-savings for staff who don’t have to juggle all these tasks.
The ability to offer smart solutions can have a major impact on occupancy and revenue for student housing property owners: over 60 percent of MDU operators who have installed these solutions saw improved operating efficiency and lower OpEx, while 87 percent expect to see ROI on their investments in less than three years.
In addition, an impressive 83 percent of MDU residents with access to property-provided smart home solutions are satisfied or highly satisfied with their apartment or condo, versus 66 percent without. Considering that online reviews play a vital role in student housing decisions, a high resident satisfaction drives up a property’s appeal and marketability, ultimately helping to fill units.
Delivering smart proptech requires strong, reliable network connectivity to support these systems and with community-wide Wi-Fi being a must-have for residents, high-speed, high-reliability bandwidth is key to delivering the premium experience students demand.
As student housing properties look to compete with competitive housing, upgrading network infrastructure to include these modern amenities is a no-brainer for attracting tech-hungry students while delivering affordability and convenience.
—Sandy Jack is director of strategic relations for multifamily at Nomadix, an ASSA ABLOY company.