Luxury Housing for Students Booming: What Are the Pros and Cons?

The sprouting of state-of-the-art luxury housing for students has brought both excitement as well as concerns.

College campuses generate a tremendous amount of housing demand. It’s no surprise that colleges and student housing are pushing local rents soaring, with a flurry of off-campus state-of-the-art luxury student apartments also sprouting.

From university students, to professors, administrators and the many other workers at or near higher learning institutions, there is great demand for housing.

And as the housing boom continues and finding decent bargains becomes more complex, the demand and opportunities in student housing continue to grow. That means renting to college students can bring huge rewards for property entrepreneurs and developers.

Reports indicate that around 44% of college students live off-campus. In an effort to meet this demand for student housing and distinguish themselves from the competition, property developers and investors are opting to build luxury houses for students.

The luxury housing for college and university students has in fact become a multibillion-dollar industry, with shiny new apartment buildings coming up around colleges and creating some of the poshest student neighborhoods in the world.

Developers are pouring millions of dollars into student buildings with luxury amenities like swimming pools, hot tubs, gyms and saunas, causing excitement as well as concerns that this could be further fueling divides among the rich and poor on campuses.

For those entering this robust student housing market to meet the demand for housing for students, it’s advisable to first weigh the advantages and disadvantages of the luxury student housing market before pouring money into such a project.

Students’ Luxury Housing Market Pros

As is the case with most business opportunities, private housing with luxury amenities for college and university students may not be a good idea for everyone.

It’s vital to consider the pros and cons of such a venture carefully, including researching success strategies before delving into the world of luxury housing for students.

Some of the pros of student luxury housing?

1. Extra Amenities

High-end student luxury housing and condos feature amenities not included in standard flats. Those who can afford it get nice extras, including rooftop pools, outdoor theaters, fitness centers, showerhead speakers, and even big-screen flat TVs.

Additionally, the high-end properties will most likely have distinctive features like full Wi-Fi access, elevators, large parking spaces, and private terraces that make students’ stay more comfortable and pleasurable, and landlords’ pockets happy.

That’s a boon for both the student and the property owner.

2. Cost-Effectiveness

Not only can you increase your income by renting to college students, but you may also save money as well. That is because the high-end student housing properties consolidate essential services under one roof, such as valet service, garbage collection, and other specialized services, which tend to attract lower costs together.

From university students, to professors, administrators and the many other workers at or near higher learning institutions, there is great demand for housing.

Students’ Luxury Housing Market Pros

As is the case with most business opportunities, private housing with luxury amenities for college and university students may not be a good idea for everyone.

It’s vital to consider the pros and cons of such a venture carefully, including researching success strategies before delving into the world of luxury housing for students.

Some of the pros of student luxury housing?

1. Extra Amenities

That’s a boon for both the student and the property owner.

2. Cost-Effectiveness

For those who can fork out well above the roughly $270 a month it typically costs to live in the most basic of university dorm rooms, they can find the best services and rates that a luxury apartment can give at places like The Reserve Carrollton.

3. Increased Rents

The majority of college students share a room. When more individuals share a place, you often charge a higher asking rent since each person is responsible for their rent.

If you rented the same space to a family, you wouldn’t set the family apart and charge each family member individually. But with luxury housing for students, you can get away with that.

For instance, a four-bedroom property may rent for $2000 per month to a family, but you might earn an additional few hundred dollars per month by renting to four students who pay $600 per month.

For students, this type of cost-sharing, allows them to afford luxury housing.

But there Are Cons of Luxury Housing for Students, Too

While increased demand for homes results in increased rents, there are some significant cons of luxury housing for students to take note:

1. Pricey

Luxury flats come with a hefty price tag. Typically, these high-priced apartments are built for people who expect more and can cost as much as $1,500 a month in rent.

Let us not forget that the facilities and services included in a luxury apartment are not available in standard apartments or suites, hence justifying the higher price.

When a you are on a tight budget, luxury flats may not be an option for you, whether you are a student or property developer.

2. Inexperienced Renters

For the majority of college students, off-campus college accommodation will be their first experience living alone. Many of the young tenants may be careless with the top-of-the-line facilities in the luxury apartments, and may even be inexperienced when it comes to how they engage and interact with the landlord and property managers.

Because students’ communication and engagement levels are not always at per with your typical adult renters, renting out luxury housing to students may bring some problems and you may even need to handle the young tenants more carefully.

College students are also notorious for their lack of sanitation and cleanliness. It can lead to costly issues such as mildew or pests like rats and cockroaches in the luxury property.

3. Breach of Lease Contracts

While you may specify unequivocally that only three persons are permitted to live in the luxury student complex, college students are not always trustworthy. They may cram one more person in to save money each month, unbeknownst to you.

Moreover, college students are known to also disregard noise and extensive party policies, which can be frustrating for the property owners and neighbors.

Perhaps the most egregious con in people’s minds is the assertion that these high-prices apartments are worsening the socioeconomic divide in higher education by segregating rich students from their poorer classmates and pushing up other off-campus rents.

Nevertheless, there are those who contend that ‘student housing’ should not be synonymous with crammed, tiny box rooms with bare basics, especially in the most mature markets globally. For this latter group of people, those who can afford luxury student homes and their state-of-the-art amenities should go for it.