The competitive landscape in student housing has evolved. Rental markets which once faced student housing shortages are now inching their way to surpluses. This trend has lead landlords and property managers to get creative with their rental offerings, in order to establish a competitive advantage in their respective markets.

While there is no surefire formula for success, when it comes to establishing a competitive advantage, there are several tactics that can be implemented to have an edge on the competition.
 

1. Make the property pet-friendly:

A recent study found that more than 76% of millennials own a cat or dog. If a property has a no-pets policy, this could potentially mean that only about ¼ of the millennial renter market would be interested in the property. Needless to say, by refusing to accept pets, a landlord is drastically shrinking their potential tenant pool in the student housing industry.
 

2. Offer highly sought after amenities at no additional charge:
J Turner Research identified that two of the top amenities that student renters seek are in-unit washer/dryer and extended cable/Wi-Fi. In many cases though, landlords charge extra for these features. For example, most properties which offer laundry facilities charge a few dollars per load through coin-operated appliances. Instead, landlords should consider offering this service at no additional charge; while factoring the cost into the monthly rent. This strategy can also be applied to parking, as it was the fourth most important amenity desired by student tenants. 

3. Offer referral bonuses:
Referral bonuses are a great way to put current tenants to work in helping to find other tenants. Referral bonuses not only incentivize lease signings, but also aid in marketing efforts through word-of-mouth advertising. The National Apartment Association published a student housing report that identified the most common way students learn about an apartment community is through collegiate friends/roommates (38%).

4. Offer both by-the-room and by-the-unit lease options:
When a landlord only offers tenants to rent by-the-unit, they are putting themselves at a disadvantage because they are missing an entire pool of potential individual renters. We previously visited this topic and found that offering both options was favorable, as it created a larger pool of tenants and decreased the risk of having vacancies.

5. Offer unique value-added amenities or services:
To stand out from the competition, some landlords have become creative by offering relatively novel amenities. One idea that has become increasing popular is to offer a Netflix or Hulu subscription with the rental. The subscription only costs $7.99/month, which is a fraction of the cost of cable and it’s a service that many students enjoy. Another idea is to include a brand new gaming system like Xbox One or PS4 with the unit (the tenants don’t get to keep them after moving out, of course).

6. Offer flexible or shorter leases:
Students are attracted to shorter leases which match their academic terms. We previously discussed why shorter leases attract students and how this can be a lucrative rental offering for this demographic of renters. The standard 12-month lease isn’t exactly compatible with a student’s schedule and often leads them to resort to subletting during months they don’t inhabit the rental unit.

7. Offer a non-inclusive and all-inclusive rental rate:
It’s fairly common to see student rentals advertised with an all-inclusive rate (utilities included), which is preferred by students in some cases. The only downside to this is that it can inflate the rental price, in comparison to other properties on the market at the same time. By offering a non-inclusive rate as well, property owners and operators have the ability to advertise lower rental rates, which may be more appealing to students on a tight budget. By offering both, it gives prospective student tenants two options to consider.