- July 12, 2021
- Posted by: Temitayo Omodehin
- Category: Uncategorized
As one of the largest providers for student housing and real estate in the Unilag metropolitan area, we often have to answer the many recurring questions and considerations students have concerning housing accommodations. We have found over the years that properly catering to these considerations makes all the difference. Students are always looking for the best possible deal. This article aims at informing prospecting investors of these issues. We will also discuss measures that can be put in place to handle situations that may arise due to these concerns.
1. Location/ Distance to School
The most significant factor determining whether a student will sign a lease is proximity to their respective academic institution. This is a factor every investor keeps in mind when deciding to invest in student housing. Locations that are closer to schools command a higher premium in yearly rental fees. These locations also do not struggle to find tenants as they are always in high demand. Transportation costs are a factor students have to manage, and so if you can provide a location that minimizes that cost, you will be more likely to find success. For example, students who attend Unilag prefer accommodations in Akoka and Iwaya because they are walkable distances from the university.
2. Private vs. Communal Bathrooms
Another factor that drives demand is public or private bathrooms. Privacy is a commodity that everyone wants access to. Therefore, accommodations that can provide en-suite apartments are more expensive than those will communal bathrooms. So, this is a choice one must make when choosing to develop or invest in student housing. Having cleaning services who routinely come to tidy up is also a plus.
For parents and guardians of students, security is a vital issue. Parents want to trust that the location is safe. Crime activity, presence of disrupting elements like thugs or gangs will deter people from that location. So when choosing a location to invest in, ensure the environments are safe and secure. A measure you can put in place is to hire private security to guard your property.
Most private hostels and housing accommodations provide stand-by generators as part of the leasing package. Due to instability in power supply, stand-by power is a must. As is the trend, more features command higher rental fees. For students who study overnight, access to a stand-by generator can be the deciding factor in selecting an accommodation. We recommend having a stand-by generator that runs from a specific time in the evening till morning. E.g., 10 PM till 6 AM.
5. Number of persons per room
Typically, rooms are divided for many students. Offerings are classified as one-person rooms, two-person rooms, three-person rooms, four-person rooms, and so on. The number and the size of the room can affect the overall rent per person in the room. Some students who prefer to live alone will be willing to pay a premium for that luxury. Finding a balance is a decision you will have to make.
6. Access to essentials
High-value areas usually have access to supermarkets and restaurants. This also drives up the price. This is why a location must be selected carefully. Essentials like a laundry room, washing machines, cooking space, etc., also affect the demand and rental cost.
It might seem like a mountainous task to find locations that satisfy all these requirements, but this is not the case. Many investors have found success investing in student housing via programs like the Project Balogun 3.0 initiative.
Others find suitable investment opportunities by consulting professionals in the industry like CBC. The first step is to acquire knowledge. If real estate investment piques your interest, then contact Catalyst Business Consult to learn more.
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