If you lucky enough to own a home close to an educational institution you could be sitting on a possible gold mine. Many homeowners have realised the potential and opened up their home or renting out their second home as students accommodation for the academic year.
With the demand for student housing exceeding the supply for on-campus accommodation, many students have no choice but to search for alternative housing outside of the official residences. This is true not only for local students but foreign students too.South Africa has also become an attractive option for foreigners wanting to learn English or pursue specialised degrees at an affordable but reputable institution.
The continuing student housing shortage has made becoming a student landlord appearing an attractive proposition with homeowners cramming students into their homes and maximising profits instead of renting to one family for a single income.
If you’re considering moving into the student accommodation market there are a few key considerations you need to take into account so before you take the dive, here’s what you need to know about letting to students.
How to make renting to students a profitable decision
A recent survey of nine South African universities, conducted by The Times, revealed that out of 140 000 residence applications in the past year, there were only 68 419 available spaces.
An additional review compiled by the Department of Education, of 50 public colleges, showed that for the 710 000 students, there were only 10 120 beds available.
For property investors who have been pondering over the idea of servicing this demand provides an opportunity for a profitable investment. If you do decide to take the plunge and become a student landlord, consider these 5 useful tips to ensure that your investment is a success:
Choose the right location
Selecting the right location is vital to ensuring a successful investment. Student accommodation should preferably be within a safe neighbourhood and within walking distance to the university.
Keep convenience in mind
Many students don’t have their own vehicles and have to rely on public transport to get around. For this reason, it is important to check that your rental property is located in an area which offers easy access to public transport and amenities. Doing so will increase the demand for your property.
Remember to include security features
One of the main concerns for parents seeking student accommodation for their kids is to ensure that their child is in a safe environment. Integrating safety and security features into your rental property can help to guarantee that your home is on their list of top choices.
Aim to be close to local amenities
While the main purpose of attending university is to further one’s studies, students do still enjoy a social event or two. Providing student accommodation that is situated near to places of service and entertainment can be more attractive to students as compared to homes which are located a distance away.
Add extra features to the property
Going the extra mile to ensure that your tenants are taken good care of will certainly make your property stand out from the rest. Consider including extra features to enrich the appeal of your rental home and make their stay more enjoyable, such as:
- A study desk
- Adequate Wi-Fi access
- Kitchen and laundry facilities
- An entertainment and/or living area
- Partial furnishing (not all residences)
- Walking distance to campus
- Easy access to public transport
Renting to students can become quite a profitable investment. Taking the tips given in mind, this investment should benefit both you, as the students renting your space. Keep in mind, it might be the first time these students have a rented a place and lived on their own so setting ground rules is important.
If the landlord and tenant relationship work out well, you could end up with a profitable and well-working partnership that could last for their entire academic career.
Take the legal route
If you’re looking to evict a tenant from your property and want to avoid a long drawn out case or want to limit your risk then present your case to an eviction lawyer. As a specialist in the field of evictions, our team of lawyers will evaluate your case and give you solid advice if you have a case that will hold up in a court of law.
If you need advice on your eviction case or would like us to represent your case, get in touch with Le Roux Attorneys