Sustainable Student Housing- A New Game

Sustainable student living is not just the future, it is the present market demand that is getting younger by the day and far more environment-friendly than even the student accommodation operators are prepared for. Here are a few criteria on the basis of which you can also be one of the trendsetters in this industry and be counted among the most eco-friendly student accommodations with a covetable sustainability quotient.

1. Know your tenants

Given the decreasing age of students, it is imperative for property managers to effectively discern their target demographic and accommodate their specific needs. To accomplish this objective, it is essential to first determine the primary source of the student population. Several parameters can be employed to identify the audience, which may encompass:
1. Age: Use age as an indicator to know what major demographic you are catering to and if you want to dig deeper into the solution you can also combine the factor of gender with age and divide your target audience using these parameters.
Below provided data explains exactly which age and gender categories property managers should keep in mind while they’re planning a strategy for the students that are going to come onboard.

2. Background research: A chef doesn’t cook anything until he knows whom he is cooking for, because from top to bottom everything is dependent on the preferences of the person he is going to serve. That’s why before designing a property, operators should know about the likes and dislikes of their tenants and what are the values that they carry with them.
Many students who come to the United Kingdom, the United States, and Australia to study are cultured and conscious of the damage that has been done to this planet and how they can contribute to even slightly alter this damage. They want to adapt to green habits and environmentally friendly products. In a recent study, it was found that the majority of Generation Z shoppers prefer to buy sustainable brands, and most are willing to invest 10% more in sustainable products and habits.

2. How do property managers benefit from adapting to sustainability?

1. Sustainable construction: One of the relevant factors in the student housing industry right now is sustainable construction. The construction industry by nature is a colossal user of natural resources and that’s why even this industry is adapting to more eco-friendly practices to reduce its environmental impact. Property management groups that go for sustainable construction create a positive image of their brand for their consumers who are moving to more eco-friendly ways of living and it also saves the investors a considerable amount of money by using renewable and recyclable material, reducing on-site waste, and reducing operating costs.

2. Government backed benefits:

• Governments are adopting a penal approach, including green taxes on harmful activities, alongside stringent environmental standards and certification regulations. The housing licenses are being held as leverage to check emissions, energy usage, and pollutants.
• At the same time, governments are encouraging green properties through tax rebates for meeting these standards. Further contributions are seen in the form of loans and financial aid or grants so as to:
     1.  Reduce dependencies on conventional energy resources.
     2. Create energy-efficient buildings.
     3. Make provisions for large and small changes that make eco-friendliness an indispensable part of the lives of students.

• Starting in 2020, the student consciousness of sustainable living has been echoed by the decisions of the government and the preferences of financial advisors and student housing investors.
• Net-zero targets are presently being mandated by legislation, as even the student housing sector is made to feel the accountability to live up to the global green standards.
• A less noticeable factor is the monetary or transactional relevance of sustainable student housing in terms of the number of stakeholders whose decisions shall alter based on whether property managers decide to ‘go green’ with their PBSAs or not.
• To list a mere few stakeholders- Landowner, Investment Manager, Architect, and Construction Manager.

3. Maintenance loans: Students choose low cost, uncomfortable accommodations when they cannot afford PBSAs. The government provides maintenance loans to students to be able to sustain their daily expenses. But such loans often cover only 50% of the PBSA rent.

But in net-zero PBSAs, with limited energy usage and emissions, the rents can come down significantly. Also, facilities like photovoltaic cells and renewable energy facilities can temper the rent to a far more moderate level so that students with limited budgets be able to afford PBSAs within their maintenance loans.

Thus, turning towards sustainable construction and resources can help property managers drive in a larger crowd while still being light in their respective pockets.

3. Ways to become more sustainable

Change starts at home, and adopting a few simple measures will help you convert your student housing into a sustainable one. Some of these simple measures include:

• Focus on energy efficiency: Students are needly inclined to a greener and more energy-efficient living, where every Watt of energy saved makes the plant far more sustainable. Operators are deploying PV Cells to harness solar power and are also introducing recycling facilities to achieve sustainability goals for their young residents.
• Conscious waste disposal: Waste segregated between dry and wet waste can be recycled and reused, even as a parallel, auxiliary source of energy. Properties with recycling facilities are all the rage. Students have reported making this a search criterion in choosing between properties similar in these aspects.
• Reusing articles of daily use: These are manifested in the smallest of habits, like replacing plastic bottles, straws, and daily utensils with metal counterparts; using washcloths instead of paper tissues. Students are increasingly seeking out properties that use sustainable furniture.
• Reducing domestic emissions: Electric Heat emissions are affecting the globe in the worst ways possible starting from micro-heating of the atmosphere to the macro-impact of melting polar ice caps. The implementation of LED lighting, motion-sensing appliances, and power strips are only a few examples of how emission prevention is deeply embedded in student preferences.
• Monitoring carbon footprint: Students are literally ready to walk that extra mile and take that extra step to reduce their carbon footprint. They prefer PBSAs that would rather have a place to park their bicycles rather than allow motorcycles and car parks on their building premises. It means that students would prefer the accommodations at a cycling or walking distance from their respective universities more than others.

4. Energy Performance Certificate

• An Energy Performance Certificate (EPC) informs how energy efficient a property is. This certification assesses the property’s energy consumption and its estimated energy cost. The operator’s property gets examined on the basis of EPC rating which ranges from A-G where A is the most energy efficient and G is the least.
• Energy efficient properties are crucial to tackling the climate crisis, moreover, the properties with a good EPC rating indicate optimum utilization of resources by the operators. They can also save a considerable amount of cost on energy bills, as well as improve the upgradability of their properties. An accommodation with an EPC-C rating will pay appx. £750 a year less on energy, than one with an EPC-E rating.
• Looking at student preferences, it’s clear that students go for PBSAs that are more energy conscious. Some factors that can help an operator in making the premises more energy efficient include: building fabric and the heating, ventilation, cooling, and lighting systems.

5. Trends in bookings on amber

With over 40000 bookings in 2022 - amber observes the changing market trends very closely. The observed results showed a great inclination in students toward sustainability. It was further recorded on the amber website that students are even willing to forego luxurious amenities and take a higher cost for sustainable properties. This is reflected clearly in the filters they applied to search for an ideal home, like ‘sustainability’ and terms like ‘green living’, ‘recycling’, ‘waste management’ etc. The following data clarifies how sustainability is not a transient trend. Rather, it is the next wave of change in student housing, soon to become the hygiene criteria of PBSAs. Property management groups shall be better of to be the early adapters to the sustainability movement so as to sustain alongside the major players in the business.

Prior to committing to an accommodation, a student considers various factors, with the location of purpose-built student accommodation (PBSA) ranking among the most crucial. International students, in particular, prefer to reside close to their academic institution, as commuting long distances within a city is deemed unfavorable. Thus, if the PBSA is situated within walking distance of the university, students may willingly forgo certain amenities. It is therefore imperative for developers to carefully strategize and prioritize location when constructing PBSA facilities. Moreover, the demand for sustainable student housing can garner higher income by capitalizing by listing on amber's platform.

In the initial days, sustainability was far below the checklist that property management groups would have to care for while building their properties on enhancing their curb appeal. But presently, the highly conscious student market has made it a mandate for property management groups to raise their awareness and make significant changes to their properties if they wish to sustain their sustainability-conscious band of clients! Check out this blog to know the best types of affordable student accommodation in 2023.