There is one very common concern for lenders and landlords who want to build student housing: Is it worth it? That depends on how the owner manages the property. A global student accommodation industry worth $16 billion. The number of university accommodation beds is insufficient throughout the world. This is also the case in South Africa. The universities only offer only 40% of the beds that students need. Thus, there is scope for off-campus student accommodation businesses.
But before you rush into buying properties for the student housing business, you should do your research. We’ll explore the subject in depth.
Students expect high-quality accommodation when they move to a new place. There should be some facilities and a good atmosphere. This helps them adjust to their new environment. Every year, there are a lot of new students in every city. Additionally, big cities are experiencing a rush of new students every year.
In many countries, student accommodation means dormitories or rental student housing. Besides, student housing has the same definition in the USA. But this is not the same for other countries.
In New Zealand, boarding houses provide rooms for students who live with a family. Besides, they eat the same food as them. In our article, the term student housing refers to both types of student accommodation.
Globally, universities cater less to student accommodation than their student populations. It is important to know how to be in the business. Moreover, it will help you more to understand is student accommodation worth it
In the last ten years, student accommodation investment has seen significant growth. The world has seen the most growth in Europe and New Zealand. Moreover, it will grow more according to some reports in the upcoming year. Moreover, this is the largest alternative asset class out of 19.
If the property requires a lot of maintenance, you will likely waste your time and effort. However, student housing can be a profitable business. Additionally, these include old properties that require constant repairs. As a result, tenants complain and become irate. Choosing the right property is essential.
The occupancy rate is the ratio of taken beds to total beds. Your property has an occupancy rate of 90% if it has ten beds and nine tenants. And the vacancy rate is 10%. Your business’s success depends on the occupancy rate. It will determine if you should start a student housing business.
In the U.S student accommodations have a general occupancy rate of 89% which is higher than the average hotel occupancy rate of 56%. This is why it is good to start the student accommodation business in the US.
In South Africa, Nigeria, and the UK, the occupancy rate is over 95%. So there is also scope for the business. Every city gets new students each year. So it is good business to invest. Additionally, it is crucial to understand the accommodation rate in your city.
Keeping marketing expenses low can help your business to grow. You can try some tricks to do that. Additionally, it is very helpful to attract new students. You can reduce your expenses by following these steps:
Ezilet connects honest landlords with dream tenants. Additionally, Ezilet offers the following benefits for listing student accommodations off-campus:
To list your property on the common platform, don’t be left out! List today!
The occupancy rate of student accommodation is higher than that of hotels or lodges. Hope now you know if student accommodation is worth it or not? It offers more rental yields from general economic indicators.
A reliable platform is also necessary that can help you in the business. Ezilet is a valuable platform for investors in student accommodation and students. Besides, it is easy to use and free. Please share this document with your family and friends. Those who plan on applying to South African universities will find it helpful.
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