ORLANDO-Off campus university student housing rents are rising and are expected to increase still further over the next few years, according to a new study by locally based Smith Equities Inc. The firm has been tracking this specialty shelter market for the past 10 years.

The study shows average monthly rents at apartments rented by the bed are $933 for a single bedroom; $590 per bed at two-bedroom apartments; $545 per bed at three-bedroom properties; and $509 per bed at four-bedroom buildings. At properties rented by the apartment and not by the bed, the average one-bedroom unit is $708 per month; two bedroom, $874; three-bedroom, $1,353; and four-bedroom, $1,790.

"Rents for 2006 and 2007 are climbing at almost every complex and one or two student housing managers tell me that they expect to raise rents again [shortly]," says broker Paul M. Guyet, a student housing specialist at Smith Equities.

Amenities vary at each property but the study shows most, but not all, student housing communities include water, electric, cable TV, Internet, washer-dryer and furniture as part of the rent. Properties rented by the bed include most of the amenities; properties rented by the apartment offer fewer free services, the study shows.

Guyet adds that "while it is too early to predict where occupancies will be when the new school year starts, it stands to reason that all [property managers] should work hard to renew students as quickly as possible since there will be 1,000 new beds built on campus for 2006 and 2007 and 624 more off-campus beds in 2007 and 2008."

The University of Central Florida, the largest student housing player in the area, may also build an additional 500 beds for the 2007 and 2008 enrollment periods, Guyet says. Off campus, UCF controls the 746-unit Pegasus Landing apartments and the 432-unit Pegasus Pointe. UCF's on campus housing total 3,756 beds.

UCF also plans to add retail space at its Golden Knight Plaza which will have a total 1,500 beds this school year, up from 500 beds. JPI of Irving, TX will also be adding new off-campus beds to the area when its 624-bed complex is completed for the 2007 school year on Orpington Street near the 254-Lofts student housing community.

"The student housing market continues to be good [for investors and developers]," Guyet says. "Right now, things are looking rosy."