Can student operators stretch to BTR?
We have been saying on record for some time that student operators are well placed to deliver and operate BTR. They have vast amounts of experience of developing purpose built stock, establishing brands that attract students and operating a business that meets investors’ return requirements.
So what’s holding back the Student Players?
Fresh Student Living has around 16,700 student beds under management and they have recently set up Five Nine Living to deliver management solutions on PRS / BTR schemes.
The only real difference between operating student and BTR is the profile of let up and stabilisation. Instead of one letting cycle per year, there is constant letting and churn in a BTR scheme. Evidence shows that the typical tenancy length of an occupier in a purpose built professionally managed unit is there years.
To read the whole report please visit http://pdf.euro.savills.co.uk/uk/spotlight-on/spotlight-uk-student-housing-2017.pdf