A wise investor knows that market research is absolutely crucial before investing both time and money into a project. Investment in student housing can be a very profitable venture, but it’s important to have a solid understanding of the market first. Information can be a very valuable asset to property owners; but exactly what information should be researched for the student housing market?

The most vital piece of information property owners need to know in any rental market is how competitive it is – what’s the availability of rentals in that area?

There are two general types of markets; renters and tenants.

• A renter’s market is one that favors property owners, as there tends to be limited availability of rentals, which can drive rental prices up.
• A tenant’s market is one that favors tenants, where there are many rental options and it isn’t overly competitive for tenants.

Discovering what type of market exists in an area is fairly simple – just take a look at what is available and talk to tenants. Tenants will be your best source for this kind of information, as they will have firsthand experience on what the market is like. By asking prospective tenants some simple questions such as, “How difficult is it to find a good rental?” a prospective owner can discover invaluable information.

Determining the going rental rate would be the next piece of vital information. Pricing a rental rate too high can cause a lack of interest in the property, resulting in fewer inquiries. Meanwhile, pricing a rental rate too low can cause property owners to be missing out on additional income. To research the local rental rate, review other rental property listings for the same location online. When doing this, it’s fairly simple to determine the average rental rate and the general pricing range.

Another valuable insight is seeing what the competition is offering within the rental rate. For example, it may be a common practice to have all-inclusive units in which the utilities are not charged as extra. By discovering common offerings, property owners can determine what they should be providing with the rental, in order to match the competition. Again, to determine this information, examine other online property listing’s descriptions, utilities and amenities.

Another incredibly important thing to know is when students are typically searching for housing and the usual term start dates. Ideally, property owners should be advertising their vacancies a few months in advance or sometimes several months in advance, if a property is within a tenant’s market. Concentrated marketing efforts should coincide with peak student housing seasons and term start dates. This information is often readily accessible on most college and university websites.

The type of student rental properties in a market is also very important. For example, in certain markets landlords and property managers may rent by the room, rather than renting the entire unit. This can be attributed to the fact that many students will search for housing on their own and may not have a group to live with.

Overall, the most valuable market information can be obtained from current or prospective tenants, as well as online rental listings by other property owners. Take a bit of time to do some research – it will pay off!