Student Housing UW - Opex %?
Title says it all. For those who have PBSA experience, what's a reasonable % of income of opex for a PBSA in Europe? I'm only talking about "pure" operating expenses, so let's exclude PM fees and property tax/insurance. Thanks
In the context of student housing models discussed on Wall Street Oasis, operating expenses (OpEx) are typically analyzed on a per bed basis rather than a percentage of income. This approach is more common in the student housing sector compared to traditional multifamily housing, where OpEx might be considered as a percentage of income.
From the discussions, it's clear that OpEx for student housing can vary significantly based on several factors including location, type of management, and the specific services offered. However, the specific percentage of income allocated to "pure" operating expenses excluding property management fees and property tax/insurance isn't detailed in the provided context.
For a more accurate figure tailored to a PBSA in Europe, you might want to consider factors such as local labor costs, maintenance expenses, and utility costs, which can differ widely across different European countries. It's also advisable to look at comparable properties in the specific market you're interested in to benchmark your OpEx expectations.
I didn't need AI for this answer, even one intern with three days of experience in RE could have said something more insightful
20-35%, you would have to be more specific on your strategy/offering and market if you wanted a better guided answer, eg. what is happening during the summer/off term months?
Thanks for replying. Ideally I'm targeting premium assets with 2 months of summer income (e.g. 30/35% of total GOI deriving from summer income). Ideally 500+ beds
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