If there is a factor that is coming in handy for the real estate industry then it is the rising need for student accommodation. The fact that more and more students are enrolling into institutions of higher learning has led to such institutions not being able to accommodate all the students within the institution. This has led to students having to find themselves alternative accommodation at locations that are close to their learning institutions. Investors in the real estate market are using this to their advantage by coming up with projects that involve student accommodation. This is a market that is proving to be lucrative especially due to the fact that there is demand for the same. The fact that student accommodation only needs to have the essentials that include water, electricity and beds makes this a project worth getting into as it does not require as much capital as residential or commercial property would need.
The designs for student accommodation are normally considerate of the fact that these are students who cannot afford to pay for luxurious amenities. The designs provide for rooms that are in most cases shared with an exception of a few. The number of people each room can accommodate can vary from a single person to 6 people sharing. Such designs are normally not expensive to come up with but the returns are normally great due to the demand. You can be sure that upon completion of construction the property will be fully let with there being more students looking for accommodation else where. This means that you will be able to start making money at the earliest possible time unlike other types of properties where you have to wait for long periods before they are totally let. Providing an immediate return on investment is one of the key reasons the student accommodation market is becoming such a success. In other property projects you have to wait for long periods of time before you can start making returns on your investment.
However, there are some disadvantages that come with this type of real estate investment. For starters, the students normally have trends that are hard to predict. They tend to move properties at very short notice and also tend to only require short tenancies. This means that you cannot completely rely on them to be clients who will be around for a long time. They also tend to move out upon the completion of their courses. Their can also be a lot of damages obtained to the property, due to juvenile nature of students. This means that you will have to spend some of your income on repairs and maintenance throughout the tenancies. As much as these are problems, you can tackle them by coming up with contracts between you and the students that will require them to stay in the property for a specific minimum period as well as pay for damages caused on the property and place security deposits incase they try to get out of paying for damages or end the agreement before the minimum period has been reached.
All in all, the student accommodation market is one market that is worth investing in as it will forever remain vibrant as the ever rising number of students will always need a place to stay. Taking advantage of this market will go a long way in ensuring that you make the most out of the growing demand from students for accommodation to your advantage. As long as there is some forward planning to some of the potential issues that can arise student accommodation can be a safe and lucrative market to be involved in.