Renting in a College Town: Lessons from @StudentRentalPro
Renting in a College Town: Lessons from @StudentRentalPro
Housing development in college towns can teach us about placemaking and building cities for fun and community.
Every August in college towns nationwide, streets that had been quiet for the summer welcome thousands of students weighed down by boxes, mattress toppers, and hopes for an incredible four years. These students need housing, but renting to them requires a unique approach.
College towns are communities dominated by their university populations. The university is often the economic center driving development, research, and employment. Businesses across these towns tend to cater to the average undergraduate student rather than a typical suburban family. The immediate neighborhoods around campus tend to be pseudo-urban areas, where walkability is prized, and residential density is higher to accommodate thousands of students.
Renting to university students is often seen as a gamble. Teenage rowdiness is the antithesis of the quiet, family-friendly neighborhoods most landlords prefer. Not only that, landlords have to communicate with residents and their parents, tripling the number of stakeholders per bed. And, to top it all off, annual turnover is inevitable as students graduate, leading to higher wear and tear on living spaces. Between those factors and higher insurance costs, providing student-oriented rentals is no easy feat.
Enter anonymous X user @StudentRentalPro (SRP), a college-lover turned real estate developer who focuses on off-campus student housing. He rents unique houses to over 200 students each year. Most of these properties are within a 2.5-mile radius of the university, scattered across 12-13 neighborhoods. These properties have a mix of densities, from single-family style homes to quadplexes.
Rather than resisting the boisterous nature of the average college student, SRP embraced it. "Students love college and want to be here, so rent gets paid." Students who can afford college typically have the means to pay some amount of rent, whether through parental support or loans. For SRP, this means that out of 2000+ renters over the years, no more than seven failed to pay up every month. This also means college students are not as price-sensitive as other renters, so changes to monthly rates scarcely impact a property's rentability.
So, how do you rent to a demographic in these circumstances? SRP has a unique approach: "Students have to envision a place where they'll have fun. They're vibes-based customers." For him, this means embracing placemaking principles to create nice-looking, memorable spaces where students will want to spend time, hang out, and throw parties. Homes with empty gray walls feel bland, and students are not nearly as attracted to them. "I don't often work with apartments, though I have a few. Apartments sell amenities, but houses sell freedom," SRP commented.
For SRP, freedom is exemplified in his design choices. He emphasizes creating houses with interesting outdoor spaces and unique interior details. "Something as simple as a breakfast nook can make all the difference," SRP shared. Using outdoor murals, colorful backsplashes, string lights, and fences, SRP's properties have a unique college-like feel, making renters feel like the cast of a coming-of-age movie.
Not only that, typical urban planning concepts such as walkability or tree cover play a huge role in his work. The closer to campus or other points of interest, the higher the rent. SRP noted that students often pay a premium to be less than five blocks from their destinations. Even 500 feet makes a huge difference in perceived distance for this demographic. Similarly, tree-lined streets are prettier and more welcoming, as difficult as they can be to manage in the fall. Though students may not explicitly consider these factors, they are among the characteristics that SRP takes into account when purchasing a property.
Despite walkability being a significant factor, SRP also shared that selling a property without parking is nearly impossible. Visitors and the students themselves need ample parking space. Parking constraints have an impact on the perceived "fun" of a property as well, impacting who can visit and when. However, there are still students who prefer walking to worrying about designated drivers or commute times.
On a larger scale, SRP's experience is a great case study on the psyche of college towns, which tend to have more urban-style developments than similarly sized municipalities without a university anchoring them. Though his experience as a developer is not universally transferable to every large university, SRP's lessons on placemaking, walkability, and the finances of college students can be a useful learning tool for others hoping to invest in similar projects.
Sonia Birla is a student at UNC Charlotte majoring in Finance, Geography, and International Studies. She is the James Hardie Fellow for Urban Development Spring 2024.
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