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PBSA Offering Shorter Leases

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Reports suggest that the purpose-built student accommodation sector (PBSA) has started to advertise shorter, more flexible tenancy agreements, with operators cutting lease lengths ahead of the new academic year. Due to the uncertainty over whether courses will start on time due to Covid-19, one-term leases are being offered at higher price points.

According to Empiric CFO and chief operating office Lynne Fennah, all players are now being very flexible about lease length. She suggested the current business model in the market is fixated on 51-week tenancies but now operators are being open to letting rooms for just one term instead of the whole year.

With courses now being run from January to December, rather than the usual academic year from September, she suggested the sector could see a shift in how long-term lets are agreed.