COVER STORY
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There ' s never a dull moment in this business . Sometimes I wish for dull moments .” smiles Retha . “ There will be challenges to overcome on a daily basis ; maintaining student discipline in your properties , managing cash flow when the universities pay out late , and keeping order in a mountain of admin and complex paperwork are some of the things you can expect . But the rewards make it all worthwhile . It ' s an opportunity to run a successful business that provides students , who might come from disadvantaged backgrounds , with a safe place to live and to pursue their studies so that they can change the course of their future .”
What is Student Accommodation ( S . A .)
Any property where students live while studying can be classified as S . A ., be it a private apartment , university residence , shared room or garden flat . Normally services and costs are included as part of the student accommodation lease , whereas this is not necessary for residential tenants .
One of the most important distinctions between S . A . and normal residential rental property is that students are not considered as normal tenants and are governed by a different set of laws in South Africa . Your SA property is not the students ’ primary residence ; it is as if the student is staying with you on an AirBnB basis . This does make it easier to evict a student from your property if the need arises as they have a primary home to which they can return .
SA as a property investment
It is important to understand that SA requires a hands-on approach , especially at the level where you own or manage several properties with a large volume of students and staff .
You need to treat your SA property like a business . It requires sales and
18 DECEMBER 2022 / JANUARY 2023 SA Real Estate Investor Magazine