Student Accommodation

I run & operate 2 rooming houses used as student accommodation. Never had a vacancy, the demand is pretty good in Victoria. I think the demand will continue to rise, especially as the property prices at the current level. What are your thought's on student accommodation?

 

I think it's very lucrative if you have well position properties.

Many years ago (1996), I used to live in one of those accomodation in Balaclava consisting 5 large bedrooms. Each bedroom could accomodate 2-3 students. All bills included except Internet.

If I recall correctly, I paid $400 per month. It was constantly full.

 

Advantages of letting to students

• Typically, students are not overly fussy about having state-of-the-art accommodation. For many it might be their first rental and they’re more interested in being with their friends. Older properties with multiple rooms are ideal.
• You can charge rent per room. Since there are often more tenants in a student let than there woudl be family members in a similar property, especially if you have converted a living area into another bedroom, you can expect high returns.
• It is relatively easy to find tenants, particularly if you are close to a university campus!
• Students move on, so you are not tied into any long-term contracts.
• Generally, students are reliable tenants, easy-going and undemanding. And best of all there’s a new pool of them searching for accommodation every year. So, what’s not to like?

Disadvantages of student lettings

• Demand for privately let student housing is being affected by the rise of purpose built private student accommodation. Research your area thoroughly.
• Bills for maintenance and repairs will probably be higher than usual but then you can offset this against the cost of not needing to provide expensive furniture and décor.
• You should always have a guarantor as students generally can't provide credit references since they are coming from their family home.
• You may have a few months where your property is vacant during the summer holidays until the new term starts, but many student landlords successfully insist on 12-month leases.
• You might have to deal with noise complaints from neighbours or the local council if your tenants like to party.