Ask any student housing operator what Gen Z is after, and they’ll tell you this — Gen Z wants what it wants. This generation isn’t afraid to say it, nor are they afraid to voice their displeasure or seek out alternatives if they don’t feel the current offering aligns with their values. And they certainly have values.
“As the largest, most-educated and most ethnically diverse generation in American history, Gen Z has a deep understanding and passion for social justice, are always seeking to learn, and are keen on inclusivity, paying it forward and doing the right thing,” says Michele Bettinazzi, customer experience manager at PeakMade Real Estate.
Laura Formica, senior managing director of operations at Core Spaces, believes resident priorities can be met by operators if these attributes are boiled down a little further.
“Today’s residents want to be seen, heard and taken care of,” she says. “Operating in student housing is much like operating a restaurant…there’s a lot of responsibility that comes with that. We lead with kindness and care, anticipate our residents’ needs and try to create memorable moments for them every day.”
Johanna Adolfs, director of sales and marketing at Cardinal Group, whittles it down even more.
“Comfort, community and personalization,” she says.
Comfort comes, Adolfs notes, when residents feel they have a high level of control.
“You can ease their minds by using seamless technology and mobile integration, such as offering mobile apps for rent, maintenance requests or keyless entry,” she continues. “Unique social opportunities and events invite the resident to participate in a living and breathing community. Personalization is essential to foster that inclusive community. Providing furnished or unfurnished options, roommate matching services, and ample space gives the resident the ability for freedom of expression and comfort.”
The Details
Creating a hospitality-centric student housing experience doesn’t happen overnight. It also can’t happen effectively and efficiently if owners don’t know what they’re doing. Rather than throw spaghetti at the wall to see what sticks, some operators are calling in the big guys.
“To exceed Gen Z’s expectations, Campus Life & Style is the only student housing management company in the nation to not just focus on, but invest in, providing five-star, resort-style hospitality and concierge services,” says Erin Mahone, the company’s vice president of training and hospitality. “Leveraging elite training provided by leading hospitality industry professionals, CLS has developed its own program to encourage team members to not only serve at the highest level, but to polish their personal presentation, anticipate needs, and go the extra mile to provide our residents with individualized, intentional experiences to achieve Gen Z-approved customer satisfaction.”
The CLS Hospitality program includes 50 non-negotiable standards of service, along with weekly interactive training to keep these standards fresh and top of mind. Each asset receives an annual review, with those meeting and exceeding company standards receiving four- and five-star CLS Communities designations.
Chelsea Kloss, executive vice president of design and curation at LV Collective, adds that, much like hotels, student housing communities must give off a certain vibe or evoke a particular feeling. This is the best way to draw students into what is familiar or curious — ideally both.
“Gen Z has an appreciation for design and elevated experiences,” she says. “And we know that if a space feels good, you’re likely to linger a little longer. So we lean heavily into creating spaces that evoke emotion and create experiences.”
Kloss does this by engaging the five senses.
“We don’t stop at how our spaces look,” she continues. “Each of our projects has a signature scent and playlist, elevating the feeling you get when you step in the door.”
LV Collective also heightens the senses through plants that provide warmth and texture, custom lighting, styled bookshelves, pillows and other accessories that create the feeling of home.
Personalized touches can also “touch” residents.
“Our communities are people-focused, so engaging Gen Z starts with the authentic moments that come with each resident or prospect interaction,” says Jessica Mancuso, vice president, new development at Asset Living. “Simply going above and beyond the call of duty to make someone’s day reinforces why they chose to be a part of the ecosystem that we have provided. For example, we just had a site write handwritten notes to each new resident that moved in last month. That is something I have personally experienced with the W Hotels brand during my stays.”
Handwritten notes, roommate matching preferences, curated playlists, and staff that go above and beyond may not impact the actual real estate of a student housing complex, but Mahone has no doubt that these touches foster the sense of community within that literal community.
“Though the amenities race isn’t over, providing an experience is proving more and more important to today’s customer,” she says.
The Amenities
With Gen Z, it isn’t so much an amenities arms race as it is a competition in quality. The thing, though, is that quality can take many forms. Look at today’s study spaces, for example.
“Gen Z has really gravitated toward customization and flexibility, so we’ve really tried to meet that demand head on,” says Adam Byrley, COO of the Preiss Company. “These rooms need to be a variety of sizes and types, with individual private study areas to large group study spaces with up-to-date technology and comfortable furniture. Gen Z prefers private areas in public spaces.”
LV Collective takes a similar approach. Its study mezzanines are designed for various forms of studying, but with an emphasis on “together but separate” spaces that allow for independent work while remaining engaged in the activated study floor experience.
A student’s needs also change throughout the day, making flexibility all the more important when it comes to the physical spaces. Formica notes hospitality-focused student housing providers are moving away from segmented amenity spaces in favor of open spaces that can serve a variety of purposes over the course of a day.
“These spaces can allow residents to grab a coffee in the morning, study in the afternoon and hang out with friends in the evening,” she adds. “We love creating spaces that have energy and bring people together.”
In these instances, it’s not so much the dollar figure spent on impressive artwork or high-end office furniture that denotes quality. Instead, it’s the various ways students can utilize these spaces that asserts the amenity’s true value.
Once a community has signed a resident and made them feel confident that they’ll be seen, heard and taken care of, it’s time to provide them with an opportunity to connect with other individuals who may do the same for them. This, of course, is done through social interactions.
“We’re intentional about creating community at our developments, designing spaces that draw residents out of their apartment to engage with each other and foster relationships,” Kloss says. “One of the ways we do this is with our in-house coffee shop, Daydreamer, that serves handcrafted espresso drinks, coffee, tea, and artisan pastries and snacks. Students gather at Daydreamer day and night to study and socialize, and the buzz of that energy drifts throughout the building.”
With all this study space, it goes without saying that fast, reliable Wi-Fi isn’t a nice-to-have amenity. It’s a must have, with the top communities allowing each student to connect 16 or more devices to the network, Bettinazzi says.
Providing a top-notch hospitality experience also means tossing aside the cookie cutter approach. Sure, the complex will likely have a fitness center, but how it’s received will hinge on whether its offerings align with that particular clientele. In fact, it’s easy to tell how most amenities are received.
“One of the key indicators of success for us is the activation of spaces,” Kloss says. “We know we hit the mark when our amenities are full of energy — and residents. You don’t want to see unused clubrooms, zen-less yoga studios and courtyards that crave community.”
This is where quality once again plays a significant role. As Kloss asserted, you can have the nicest, most impressive yoga studio in the market, but if that’s not an activity your residents prefer, all that effort (and money) was for naught.
Thankfully, Mancuso has an easy tip for avoiding this blunder. Do your homework.
“Market research should be done before breaking ground,” she says. “Being able to answer what top three to four amenities mean the most to a specific market or population, as well as defining what students want in the market — and what isn’t offered in the competitive set — is key. Building an amenity mix that is truly catered will prevent overbuilding and then compensating for higher rents later.”
While certain generational similarities exist, the culture that comes from the institution, its student body and the surrounding neighborhood will dictate what’s important. That’s why Kloss emphasizes a tailored approach when catering to residents.
“At our property in Atlanta we included a recording room for podcasts and other projects, knowing that those students would appreciate a dedicated space to record,” she says. “We also designed the largest study space that we’ve included at a property specifically with the studious Georgia Tech students in mind.”
Meanwhile, students at the University of Florida are content to simply smell the roses.
“At our property in Gainesville, Florida, we know those students appreciate activities they can engage in and we’re intentional to provide those opportunities,” Kloss continues. “We had a flower bouquet making event that was wildly popular.”
Weather and great outdoor settings can also shine as five-star amenities.
“Curated rooftop experiences not only provide views that are incredible for photos, but students can maximize this space with outdoor cooking, watching the games on the jumbotron, sunset pool sessions and even meditating,” Mancuso says.
If you’re going the pool route, Kloss recommends you go big or go home if you’re designing with a hospitality focus.
“Gen Z students love having a pool at their apartment,” she says. “We design our pools to feel more like a resort hotel than typical student housing. Glass-walled, waterfall-edge pools, hot tubs, private cabana-style seating and breathtaking rooftop views provide a luxurious place to relax year-round.”
Those who really want to hit on Gen Z’s sensibilities should also consider the needs of their furry friends. “Generation Z is known to have redefined the relationship between humans and their pets,” Mahone notes. “Not only are their pets an integral part of their family, but they also rely more and more on their pets for emotional support.”
That’s why Mahone is a fan of pet-centric amenities, whether that be a well-maintained dog park, pet washing station or even pet-walking services.
Byrley adds that smart home features are also gaining in popularity among the younger generations.
“One item that is a ‘nice-to-have’ but is quickly moving to a ‘must-have’ is smart home-enabled communities — keyless, mobile-first-driven communities where residents have a seamless access experience from the community gate to their bedroom,” he says.
These features are inherently convenient, but they offer another benefit that today’s students — and housing operators — shouldn’t overlook.
“Residents want a community that is socially aware of the current social climate, which has pushed our ESG (environmental, social, governance) initiatives to be more environmentally conscious when we make decisions at the community,” Adolfs says. “Smart amenities and technology created for efficiency also assist in lowering costs, which help keep rental rates down.”
The Cost
The five-star hotel experience doesn’t come cheap. Not to build. Not to operate. Not to enjoy. That’s why features like smart home amenities are so important. In this case, they’re doing triple duty by providing convenience, sustainability and lower costs.
“Consider features like smart thermostats and lighting controls,” Adolfs continues. “A bulk of the costs associated with resident energy consumption are absorbed by the community, which impact rental rates. With these smart amenities, we can consistently monitor energy usage and patterns to make adjustments to keep community costs down.”
Density is another way to lower those figures. LV Collective, for example, was able to add more units than what was allowed on the site’s base zoning and exceed height limitations at its 300-foot Waterloo Tower project in Austin, Texas, by dedicating a portion of units to income-restricted affordable housing.
PeakMade, meanwhile, took some inspiration from hotel chains in creating a customer loyalty program that offers discounts to current residents.
“At Peak, many of our early renewals become part of our ‘Insiders Club’ program that provides them with early access to the lowest rates and exclusive merchandise or perks,” Bettinazzi says.
Preiss lowers costs by offering a range of units at a range of price points. This allows residents to choose just how “hospitable” they want their community to be.
“With many of our renovation projects, we leave a certain amount of units as ‘Standard’ and go up from there,” Byrley says. “Sometimes that means creating as many as three to four different finish levels within a specific floor plan, including Platinum units with quartz countertops, high-end stainless appliances, modern and unique furniture packages and 70-inch TVs.”
Naturally, the best money spent is on whatever moves the ROI — though that “investment” can take many forms when hospitality is concerned. It can be improved occupancy or higher rental rates. It can also be a space that buzzes with activity from morning until night. Or receiving multiple inquiries (or follows) after posting a picture of that glass-walled, waterfall-edge pool.
It’s hard to know the exact ROI of any hospitality-styled amenity or approach. But the overarching sentiment is there.
PeakMade, for one, utilizes focus groups to see if its services and amenities are hitting the mark.
“Personally, I absolutely love our annual focus groups,” Bettinazzi says. “They humanize the data and feedback that we get from other sources like surveys and online reviews. The focus groups put names and faces to our customers perspectives. What better motivation can we have than knowing that the impact we have on their experience is fundamentally approached in a way that values their wants and needs?”
Yes, it seems we’re back to where we started. Gen Z’s wants and needs. Are these wants and needs seen? Are they heard? Are they taken care of?
You don’t have to look far to get these answers. The bigger question is, are you looking? Do you hear them? Do you care?
“Gen Z is the first fully digital generation and, thus, has always had the ability to leave feedback at their fingertips,” Mahone says. “Whether through traditional review sites, social media or even the age-old methods, they are talking. It’s just up to us to listen.”
—Nellie Day
This article was originally published in the May/June 2024 issue of Student Housing Business magazine.