Return...

Market Analysis

Defining the Overall Market

This industry back in the 1980's had little to no competition. On most college markets off campus housing was a mom and pop operation. Then in the 1990's every developer realized the potential of this market. In some student markets currently it seems to have hit a ceiling to what the market will absorb. It takes a firm with deep experience in operations to compete in todays market. Understanding the marketing and service provided is going to be crucial in making new investments profitable.

 Market Trends

What is hot and what is not defines the purchasing patterns of the college buyer. They have been satisfied with immediate results on the internet and expect things done at once. Students that pay above market price compared to conventional like investments and understand that they do, then expecting above market service. We have specialized for years with that type of customer and understand and accept what the customer demands. We work for them as well as the investor, the campus and the parents. 

We have national experience in the likes and dislikes in new construction and understand what amenities are used and what help sell units. We have an understanding of furniture purchases for this market and who sells or produces some the better products that will hold up to the “extra use” that students demand from their furnishings. We force ourselves to watch MTV (not really) but that is the determination that we seek to understand what the market is demanding. 

Market Segment

When selecting a third party management firm you have to choose a firm that has an understanding to the target markets within a college community. What role will they play on the profitability of your investment? What rate will they set for rent in order to fill your community or do you diversify your product to attract the widest scope of consumers. This market has many markets buried within it. What is the cost of not understanding the market and are you willing to pay for that lack of expertise? Does your management partner have a market research completed in this market with all of the possible competition? If not, why?

Customer Needs

Today students expect to have ether-net connection in their room. They desire a computer lab off of their dining room. They desire to have a cleaning service clean the bathrooms weekly and have their laundry done for them. They need cable TV as a basic and a wide screen TV is not over the top but just main stream. They demand parking on site and will blame management if they can not find a spot. They have their cell phones as their phones rather than an apartment phone. The student today has changed and most apartments need to catch up with them. BMOC, Inc understands the want and need and what the competition is offering and not offering.

Retention

If your new partner is not discussing renewals then they are using your marketing money to promote their management firm. In todays market and the popularity of new buildings we need to understand and promote retention in our communities and staff. BMOC. Inc. has developed ideas to retain customers so that the cost of turning a room is minimized and the efficiency of opening full is achieved. BMOC has the operational staff and experience that it was born in redeveloping stressed properties. That is why we have a staff made up of ARM and CPM the best accredit IREMs in this country.

Property Positioning

Where is your community in the market place and what better position is there? Once you open, do you understand the need to study your customer base to better understand what market you achieved in attracting and what market you missed? This section grows with the life of the community. We understand what worked last year may not work this year. Each year it is a concern to where we sit in the market. The year after you open is a brand new market to attract. Who you attract will define your market position. The amount of marketing dollars wasted in not studying the market is astonishing.

Pricing

What is market rate for a bed or an apartment in your market? What is the competitive rate with like communities? We deliver the correct pricing and we collect what is owed. The final determination of what to charge is always up to the owners but we will provide a professional guide to where we professionally feel the rent should be set. We have found that in communities with poorly run collections procedures that your management fee will increase your bottom line rather than cost you more.

 
Financial Services

• Tax rates
• Average rents
• Sales information
• Statements – balance sheet (ex), income statement, cash flow statement
• Break even analysis
• Capital projects and projections
• and sources