Even though most universities provide accommodation for the student, unfortunately, some universities lack the capability of providing accommodation for all students who gain entrance into the university, allowing private entities to create student accommodation near tertiary institutions.
Moreover, suppose you have plans of setting up a student accommodation business but don’t know how to start. In that case, you find yourself reading the right article that aims to educate our readers on how to start a student accommodation business in South Africa.
So we encourage you to keep reading because all the needed information you have been seeking on how you can start a student accommodation business in South Africa is detailedly discussed below in this article.
The student accommodation business operates in many ways, and some include:
1. Renting To Rent: This is when an investor rent a house and later rent it out to students, so here the Investor becomes the second house owner who receives rent payment from students and pays the house owner the agreed rent cost for a commission
2. Buying To Rent: Some investors prefer buying houses near tertiary institutions to rent them out to students.
In this type of investment, the Investor only makes renovations to some Minor areas of the building to make it appear in good shape and condition to keep attracting students.
3. Building From Scratch: This is when the Investor builds the preferred type of building that suits the conditions for accommodating students
The chapters that follow are the needed information you have been seeking on how to plan, plan implementation, run and manage your student accommodation business in South Africa.
What You Need To Start A Student Accommodation Business In South Africa
The lists below are some of the basic requirements that have to be met before commencing your student accommodation business in South Africa:
1. Business Plan: build a good and feasible business plan that is easy to implement, operate, and manage a successful student accommodation business
2. Market Research: Conduct detailed market research into the student accommodation business, get to know the right locations that suit the business, available target markets, pricing, and many other aspects of the student accommodation business
3. Target Market: you can choose between rich students and average students. The kind of structure you raise and services you render will determine the kind of students that can afford your services
4. Location: always choose a location that is closer to a tertiary institution for students to have easy access to campus facilities and to cut down the stress of making physical contact with campus
5. Leasing Property: find land at the chosen location to establish your student accommodation business, and contact the landowner to negotiate on buying the land.
After agreeing on the land cost, make a deposit equivalent to the agreed land cost into the land owner’s account and request for documents in your details to stand as proof of legally acquiring the land.
6. Zoning: contact the local municipality in the chosen location to set up your student accommodation business for zoning.
Your land must be zoned to ensure that the chosen location is suitable for the student accommodation business.
7. Raising of Structure: after successful zoning of your land, raise the structure as planned and ensure that the kind of structure you raise suits the student accommodation business
8. Business Name: choose a catchy and memorable business name for your student accommodation business for an easy recommendation of your services to friends and potential customers
9. Business Registration: register your student accommodation business with the Companies and Intellectual Property Commission (CIPC) to attain the documents and certification required to operate a legal business in South Africa.
To register your student accommodation business for tax, reach out to the South African Revenue Service (SARS)
10. Advertisement: fliers, local newspapers, and online are some of the available advertising platforms you can sell your student accommodation business to students in South Africa
How Much Does It Cost To Start A Student Accommodation Business In South Africa
The cost involved in setting up a student accommodation business in South Africa varies depending on the type of student accommodation business you intend to operate.
Operating a rent-to-rent student accommodation business doesn’t cost much compared to buying to rent or building from scratch.
So, your choice of student accommodation business you intend to operate will determine the amount of capital that will go into planning, implementing, running, and managing your business.
Is The Student Accommodation Business Profitable In South Africa
The student accommodation business generates higher cash flow than the other form of property investment. Therefore, choosing the student accommodation Business path is the right choice of a business that can generate a 100% return on investment in an academic year.
Best Places To Start A Student Accommodation Business In South Africa
The best place to set up a student accommodation business in South Africa are areas near tertiary institutions. The choice of location must not be far from the institutions to help ease the stress of going a long way before entry into the campus.
So always choose locations near the tertiary institutions, which will help students have easy access to campus facilities.
How To Make A Student Accommodation Business Successful In South Africa
The following are some of the factors that have to be considered to help run a successful student accommodation business in South Africa:
1. Affordable pricing
2. Keeping structure in good condition
3. Keeping an eye on students to ensure that everything is in shape
4. Provide rooms with bed, study table, and Wi-Fi
Challenges In The Student Accommodation Business In South Africa
Below are some of the challenges facing the student accommodation business in South Africa:
1. There is high competition in the business
2. Difficulties in finding a good location for student accommodation business
3. Pricing challenges
Benefits Of Setting Up A Student Accommodation Business In South Africa
The lists below are some of the benefits of setting up a student accommodation business in South Africa:
1. Student accommodation businesses generate income for the government through taxation
2. Investors benefit from the overwhelming financial profit that comes with the student accommodation business
3. The student accommodation business has supported the educational sector
4. It creates more accommodation space for tertiary students
That is the information we can provide on how to start a student accommodation business in South Africa.
This simple and easy article Was Last Updated on by Editorial Team
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