Must-knows for investing in student accommodation
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Must-knows for investing in student accommodation
There are two main considerations when thinking of investing in a rental property, first being a good location and second, the demand for the rental property in a selective location. When investing in student accommodation, the demand for student accommodation is usually greater than the supply, and therefore this makes the ideal investment for buyers.
Here are four tips to consider when investing in student accommodation:
- Consider the context
South Africa has a large demand for student accommodation growing each year at tertiary institutions around the country. Student accommodation guarantees tenants for your property each year. This also offers more income per meter squared as student needs are different. Parents usually pay the rental of students therefore reducing the risk of non-payments.
2. Always approach with caution
Investing in student accommodation is never a high risk investment, although it is still important to approach the investment with caution and beware of the potential downfalls that could occur.
It is best to get a good property adviser to guide you with ensuring your lease agreement covers and protects you from problems that could occur.
3. Potential pitfalls aside, the benefits are still plentiful
A well maintained property is all that a student needs for accommodation. Students do not require many amenities and features. This arrangement allows for the rental income to be raised easily.
4. More homework
A good property agent will be able to advise you on whether students prefer sharing a house or a bachelor flat. Another important factor to consider is that the property is within close proximity to the campus.
Author: Property 24
