If you can get the land cheap enough you may want to consider just building a few units and see how it goes. I would talk to the school and see if they have any suggestions or ideas. Sounds like a good idea but your market is only 500 people that’s not much, but on the other hand they do need somewhere to live. Can you make the rents lower than the market rent? and the apartments nicer than your competition? What I am getting at is that if you give them more reason to live there than just proximity to the school they should rent.
I live in a small comunitty of 10 000 people. There is a comunity college built about 10 years ago. But there is no residence for the students to stay.There are probably 500 students from away that come here for school. They all rent apartments. Houses or rooms for rent. This is a 5 min drive away and a 10 min walk that is tuff in the winter. I could build right beside the school . What do you think? How big if it is a good Idea?
Any advice would be great
Thanks
CJ
Posted by ray@lcorn on January 11, 2003 at 19:31:17:
CJ,
I love college towns… I’ve been in one most of my life. They offer advantages rarely found in other markets.
A couple of thoughts…
First, check with the local planning department for the zoning on the property and the maximum density allowed. You might also want to get a copy of the development standards for that zoning district. You don’t say how big the parcel is, but generally it is most efficient to build the maximum amount of units unless the project is big enough for phasing.
Next, while it would seem that the school would be a ready demand generator, you still need to know what the market is doing. Check local rental rates and occupancy to get a feel for demand. While you’re talking to local landlords (not telling them you want to build, but perhaps buy), you also want to know what the market practice is about lease terms. Our market has a quirk that helps everyone… most the landlords in town require twelve month leases with an August 1 start date. That puts the whole market on the same footing and is great when renewal time comes around. Community colleges usually don’t have the same dynamics though, because all students are commuters.
Last, assuming the zoning allows the development, new construction generally draws a premium in rent over existing units. That, coupled with the location right next to the school should give you leverage in setting rents.