Investing in student accommodation can be a very wise choice, but it is crucial to do some home work on the topic before making any investments. While there are universities and colleges, then there will be a market for private student accommodation. In this article I will briefly give a bit of advice to ensure that you make the right decision.
Multi apartment buildings and secure complexes which is close to any tertiary education institution will always be highly on demand, in any place in South Africa. What makes this topic so attractive is that this type of accommodation is usually close to the campuses causing parents rather to pay for close accommodation than buying a car for the students, also the fact that it is usually in secure complexes, makes it very safe for the students and their belongings as well.
We will see that most of the universities and colleges will hand out free pamphlets of pages full of available housing for the students. In most cases there is always a big waiting list for students who are seeking for private housing, thus making it a very attractive investment.
It is also wise to not only use or advertise the property as just “student accommodation”; you would always want to appeal to a broader spectrum of renters, like young couples or bachelors.
Next I will explain a few considerations to keep in mind for when thinking of investing in such a “goldmine”.
Make sure that the property is with in walking distances from local transport, shops and off course the learning institutions.
Make sure to consult with the university’s housing board, to ensure that you provide market related rent fees etc. So that you don’t end up making a loss, and keep in consideration of maintenance and repair costs of the property.
It will also be wise to use a well known real-estate company to manage your property. Sometimes it can be very difficult to handle the legal stuff like contracts and tax issues etc.
You have to conduct the same rules as to normal rental property rules. You have to establish the rules of the flat and the behaviour of the tenants. Make sure that a good deposit is set in place and that there is a good lease agreement between you and the tenants.
It will also be your duty to do regular inspections, to see if the flat is till in good order. It would be wise to have an emergency fund account to be able to repair or replace unexpected problems like plumbing issues etc.
A very good time to advertise your property will be in September, because that is peak time for student accommodation seekers.
We can see that by investing in student accommodation can be a very good investment, but it is of utmost importance to do your research well and to have a good managing strategy in place.