Today’s students are our business and social leaders of tomorrow, so student power is a major driving force for the future success of South Africa. The numbers of students in South Africa is increasing year upon year, and the excellent reputation that our Universities enjoy also sees many international students choose to come here, further boosting the South African economy.
One effect of this student boom, however, is a greatly increased demand for student accommodation. That’s why investing in a student apartment brings two benefits, not only are you helping students find the home they need, you could also be opening up a significant new revenue stream for yourself.
Buying Student Apartments To Let
Buying to let offers fantastic opportunities for new and established landlords, especially if buying student apartments. University halls of residence cannot hope to meet the demands of growing enrolment numbers: for example, Stellenbosch University provides just over 5 000 residential places on its campuses, yet has around 28 000 students. This has created a real boom in the number of students seeking private rental property, which is why buy to let yields on student property are around 10%, which is significantly more than the 6% gross annual rental yield for the non-student market.
Buying to let really does bring the best of both worlds, as it brings in a steady yet significant income while still allowing you to have property that could be sold at a later date.
Understanding What Students Are Looking For
To make the most if an investment in a student apartment, it’s essential to understand what students are looking for. By meeting these needs, you can obtain more rent and attract high quality tenants.
- Location is of prime concern, so look for apartments that are near the University itself, or close to a public transport link, as well as having easy access to leisure and shopping amenities.
- Security is the second most important consideration, as it will often be parents who pay for the accommodation and help select it. By showing that your apartment is in a safe location, and that you have installed extra security features, you greatly improve your chances of letting success.
Taking Care Of Your Tenants
Being a good landlord doesn’t stop when the letting agreement is signed and the keys handed over. Keeping in touch with your tenants will bring advantages for both you and the students living in your apartment, as you’ll be able to ensure that they’re taking good care of your property and they’ll be able to inform you of any concerns they have.