All,
Looking at a student housing deal which we don't typically do - trying to think about how to adapt a typical multifamily acq model for this. Should I just model monthly vacancy to show the down months at 100% down? And then rent growth should all hit at the same time at the beginning of each chunk of leases (august, january)? That's really the only diff in cash flows between multifamily and SH, right? If not, please educate me!
From my understanding student housing is still technically a 12 month lease. Check the DD files for the rent roll and check the lease terms. If it’s a 12 month lease, cash flow is still coming in the door. If it’s a 9 month lease, you can either 1) adjust the monthly model for full vacancy in those months, or 2) if an annual model, figure out the math for the assumed down months and model stabilized occupancy based on that.
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