Why student housing is appealing


1. Higher Returns

Student rentals are often rented out per room, which can result in a higher rental return for the landlord. Since students require ease of access to campus as a priority, they are often less demanding with regards to other physical aspects of the property. Students are therefore happy to share common areas such as lounges, kitchens and entertainment areas provided the rent is affordable and the property is within easy access to campus.


2. Fewer vacancies

Seeing as there is generally a high demand for student accommodation compared

to the supply provided by tertiary institutions, investing in these kinds of properties

is recommendable. This means student accommodation offers low-risk option in

terms of vacancies.

Appealing to the student market

To ensure that the property is appealing to their age demographic, Wi-Fi with good

streaming capacity is a must. A dishwasher, washing machine and tumble dryer are

also valuable drawcards, and a good entertainment area would be an attraction too.

Finally, remember to think like a parent. What features would you want to see if you

were leaving your child in your property? Security is a must, with either

alarm systems or security gates an absolute necessity.


What are the risks?

This type of rental income does pose other risks, such as short-notice lease

terminations and the possibility for neglect and damage to the property. However,

this can be avoided provided the correct safeguards are put in place to protect the

investment value of the property.

1. Lack of maintenance

Given that students might not keep the property as tidy as a family would,

wear and tear is probably the biggest risk these rentals carry. You might need

to employ a cleaner to ensure that the property is maintained to a reasonable

level of cleanliness. Some student accommodation landlords even go so far as

to employ a house manager who visits the property regularly and is on hand

to assist the students if they have any problems.

2. Damage to property

Damage deposits should also be secured as per any normal rental.

Considering that it is typically a parent who will sign the lease and pay for the

rental, or act as guarantor for the rental and any other costs, it is advisable to

also have house rules agreed to by the students, which are signed before the

lease is accepted.

3. Timing the academic year

December and January will normally result in vacancies based on the timing

of the student academic year. Where demand is strong and property in short

supply, it is not uncommon for landlords to insist that December and January

rentals are covered by the students in order to secure them the property.