As the demand for student housing around the globe, including South Africa, continues to draw the attention of astute property investors, there’s an important role for the management of these properties so that risks associated with this investment sector are mitigated.
Here are 10 considerations for managing student accommodation correctly:
- Location: Properties should be close to transport and campuses.
- Security: Landlords and investors should make the security of the greater precinct, as well as buildings and individual units a top priority when choosing locations and properties.
- Buy-to-let investments should be managed as a business: managing student housing needs marketing, human resources, administration, maintenance and financial-savvy.
- An attitude of overall support: while buy-to-let investments may seem purely transactional, the landlords who do well from student housing accommodation have the bigger picture of supporting and growing a future generation of leaders in mind. Investing in developments where helpful amenities like communal work and leisure spaces, laundries, Wi-Fi, shopping and restaurants exist typically deliver the best returns.
- Occupancy rates: While student housing is an opportunity to accumulate wealth, mitigating the risks associated with only 10 or less months of occupancy is essential. One way to ensure this is through investing via the EasyProperties model where rental guarantees are negotiated upfront on behalf of investors.
- Understand NSFAS: The National Student Financial Aid Scheme is a government-backed bursary system that provides lesser-privileged South African students with financial aid. While there are benefits, there are disadvantages for landlords who do not have the administration skills and know-how to manage these applications. Relying on professional property management can diminish these risks.
- Specialised administration: While financial returns to meet the high demand for student accommodation are high, investors should bear in mind that there is a level of specialised administration required.
- Consider the idea of shareholder versus landlord: EasyProperties removes the hassle and administration associated with being a landlord, by allowing owners to simply be investors.
- A hands on approach: While rewarding, the student accommodation sector requires a very hands-on approach that is both time-consuming and typical of administrative red tape.
- Professional rental management: EasyProperties investors are enjoying the benefits of solid student housing returns while the day-to-day operations like finding tenants, maintenance, leases, legislative knowledge and rental collections are taken care of by our professional property management partners.
For more information on how the EasyProperties platform works, guided by a panel of property experts, offers hand-picked student accommodation property investment opportunities in the form of fractional ownership shares to investors regardless of net worth or income, click here.
Have you seen the exciting properties currently listed?
To make investing through EasyProperties even more valuable and exciting, we continue to add more excellent properties onto the platform. We are super excited to show you these amazing properties, and we know you will fall in love with them just as much as we do because of the potential income they will provide.