As Tuition Rises, Student Housing Conditions Decline
In the last 25 years, college tuition has increased
dramatically, and an expense that previously could be inherited by the students
has now become lifelong debt reaching into the hundreds of thousands of
dollars. While upper-level education is arguably improving and attracting just
as many top professionals, student housing has undoubtedly fallen by the waste
side.
As more equity than ever
is flowing in an around College campuses, college town landlords have held on
as a monopoly of increasing property values. At the same time, landlords are
able to scrape away increasingly lucrative margins amongst a steady and
increasing supply of college students without making improvements to their property
or efficiency of business.
Year after year, while college students flood into the areas
surrounding their prospective campuses, landlords hold the inelastic cards of
raising rents and reducing operating costs without consequences. While
surrounding college town properties are usually not owned by one entity,
usually 2-3, this demand shift and market failure is without a doubt monopolies
in action.
Despite the massive housing bubble in 2008, college enrollment has
increased sharply leading to shortages of housing and the evolution of these
impenetrable college town sub-markets (2). At the same time, massive
student loans and the financing hurdles that go into paying colleges has become
a scapegoat for the lowering standards and media attention.
Unfortunately, the shortage of student housing in and around
college campuses leads to an exponentially less competitive market than in most
cities and towns. Housing is so desperately sought after by college students
that landlords are able to get away with knocking down the overall living
conditions and standards of their buildings leaving mold invested drywall and
dysfunctional appliances for future tenants (3).
Additionally, owners not responding to maintenance calls, using
cheaper materials or shortcuts for repairs, accepting unsafe electrical wiring
methods, lending excessive liability to tenants in leases for common areas or
utilities, and removing unexplained chargers from security deposits have become
the norm (1)(2). Cutting corners and deceiving students has become the
unenforced status quo of management.
More commonly, this has lead landlords to disregard the most
basic government multi-family housing laws altogether. College town land lords
in some cases may not return security deposits within 3 weeks, do not provide
consistent heating, leave hazardous materials untreated, or ignore local rent
controls laws, all which of which are blatantly illegal (1).
Furthermore, larger national student-housing companies like
American Campus Communities or Peak Campus Companies have standardized higher
rental rates with grossly unfavorable lease terms for students (2). This in
turn forces students to either pay the higher than market rate premiums for the
corporate housing suppliers or accept the illegal management practices and
living conditions which is a mainstay with nearby slum lords.
Unfortunately, students usually do not have the voice or
leverage to negotiate these rents and living conditions. College towns can
truly be a “fixed market” in this sense. That being said, colleges that provide
more student-housing or resources for students to negotiate
reasonable terms, could put local landlords on their toes.
Additionally, students simply asking basic questions about lease
terms or suspicious building characteristics of apartments or reading online
reviews could avoid future nightmares (3). College town land lords will only
provide more affordable rates and address their code violations with the civic
engagement of students and colleges alike.
At the end of the day, students accepting slum-like to even
hazardous living conditions while paying higher rates is unacceptable, especially
considering the increasing financial burden of college tuition. College
students in the US should be treated fairly, and deserve reasonably priced
clean and safe housing.
Work Cited
1. “Real Estate Law
(Multi-family).” California Bureau of Real Estate. January 15 2013.
Print.
2. “Landlords, How
to Make a Buck in College Towns.” MSN Real Estate. Web.
<realestate.msn.com>
3. “Exposing
College Slumlords in Your Area.” Poynter. 4 March 2011. Web.
<www.poynter.com>
Good post. I've had such terrible landlords around campus. My friends have as well. Very good point about asking questions. The people I know who have done their research always come out better. It's sad that that's the case but probably a good life lesson in a way.
ReplyDelete“Instead, housing is so desperately sought after by college students that landlords are able to increase rents, while decreasing the overall living conditions and standards of their buildings leaving mold invested drywall and dysfunctional appliances for future tenants(3).” Amen brother! Each year it seems like I’m paying more and more fore less and less – the classic case of arguing over a shrinking housing pie while landlords’ line their pockets. My current landlord is Peak Campus and this year my contract has become even less favorable; now they are charging for excessive utility usage (i.e. water, gas, power). As an environmentally conscious person, I’m a fan of the “be water wise” approach, however the fact that I now need to have the conversation with my roommate is a nuisance. Additionally, building staff has been paired down and picking up packages or contacting a maintenance supervisor has become a hassle. It’s scary to think what privatized college housing will be like in a decade or two.
ReplyDelete—Hapless Blogger
One of your solutions for landlords taking advantage of college students is more student-housing. But when it comes to USC, that isn't the case. Many students have another year or two of housing with USC before they have to venture off-campus, but they choose the alternative because the university is so pricey. It is unfortunate because some students are forced into uncomfortable and unfair situations because they can't afford to do otherwise.
ReplyDelete