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Student accommodation investors, are you getting the most out of your investments?



ROI-on-PBSA-investment

Student accommodation investors, are you getting the most out of your investments?

The PBSA sector has grown rapidly during the last 3 years. According to Savills Spotlight – World Student Housing Report 2016-17, 2015 was a record-breaking year with over $14.9 billion invested globally. While the investment activity eased up a little in 2016, 2017 continues to see high rates of investment in the sector. All the numbers and forecasts from student accommodation industry experts suggest that:

1)     Student accommodation has finally arrived and can now be considered an established global real estate class.

2)     The student accommodation market will continue to consolidate over the coming years through mergers and acquisitions.

Generating higher ROI on student accommodation investments – fixed price points have a limitation

The market has been undersupplied for a long period – the demand from a large number of students continues to outstrip the supply of accommodation. This has allowed student accommodation property managers to ensure higher rates of occupancy, yielding a high ROI for the investors.

However, as the markets consolidate and mature, the chances of increasing profits through fixed price points like rent increase, management fees, extra charges for add-on amenities, etc. are likely to hit a speed breaker – especially when there’s a higher demand for affordable student accommodation compared to luxury accommodation.

Active capital management backed by insightful financial reporting is the key

What steps can investors take to ensure higher ROI? We have observed that active capital management is essential to track the ROI and discover fresh ways of increasing the profits.

For instance, with the right set of data, you can identify cost-saving measures that help you boost profitability without tampering with the fixed price points. Many of our clients have been able to access significant cost savings through streamlined accounting processes, improved cash management, and more accurate payment processing.

How can you get reliable financial reporting? QX can help.

QX works with some of the biggest players in the student accommodation sector – we understand how the industry works and our team can deliver customized financial statements and reports on a real-time, weekly and monthly basis. Our team of expert property accounting managers can tackle your most complex reporting needs and we can even help you speed up the month-end closures.

Through our customized reports, investors get in-depth insights into profitability, cost reduction, revenue improvements and more, empowering them to make smarter strategic decisions. Do you have access to timely, accurate and meaningful financial statements and management reports?

We strongly believe that access to such data could spell the difference between average ROI and rising profits. To learn more about how our team can help you, please email our student accommodation expert Ravi Kurani on ravi.kurani@qxltd.com or call him on 0845 838 2592.

Please note: This article was originally published on LinkedIn



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