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Student Housing Contracts & COVID-19: What will Happen?

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Landlords that rent out their properties for off-campus housing may be facing a bind. The COVID-19 pandemic has caused world-wide disruption in countless ways, creating economic issues. The housing market is no exception.

When it comes to student loan housing, landlords face the present challenge ahead. Some college students have left to be with their families and others have lost their jobs that pay for rent. This causes a dilemma for landlords that house off-campus students across the nation.

While students are trying to get out of contracts early, this creates a situation for the landlord. How will landlords bridge the gap?

For landlords that count on the rent to pay the monthly mortgage on the rented property are in a tough spot.

There is certainly compassion for students and landlords stuck in this quandary. If students are released early from their contracts, landlords bear the financial brunt of  the truncated agreement. 

“As the student housing industry grapples with how to respond to the pandemic, there is much uncertainty with how this will impact markets and leasing velocity,” says Christian O’Lone, regional property manager with DMG Investments. As stated via studenthousingbusiness.com.

Larger companies of multiple student housing units may be able to take this hit and continue. What about smaller-scale landlords?

Is there an out of the box solution to consider?

*This blog is not intended as a primary resource and may not have the most up-to-date information on the state of the market or the current state of COVID-19. Please see primary news reports for any revolving data and information.*

Resources:
https://www.studenthousingbusiness.com/the-coronavirus-outbreak-a-guide-to-the-impact-on-student-housing/

https://www.deseret.com/utah/2020/3/23/21188260/coronavirus-covid19-byu-university-students-housing-contracts



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