^Answer from Retha van Rooyen
To maximize NSFAS accreditation and ensure the long-term success of your student accommodation investment, it’ s crucial to fully understand both NSFAS and DHET requirements. Use the Minimum Norms and Standards for Student Housing as your framework, remembering that while core guidelines stay the same, specific requirements may change. Keeping up-to-date with these changes is essential for maintaining accreditation and optimizing rental income.
When designing your property, prioritize the student experience. Invest in durable, low-maintenance furnishings, create well-lit study areas, and offer functional communal spaces. Focus on comfort and practicality while staying within budget— luxury isn’ t necessary, as a quality environment can be achieved without overspending.
Market your accommodation early through social media, referral programs, and partnerships with universities or colleges. Many students secure spaces before the academic year ends, so early marketing is key to securing bookings.
A smooth property management system is vital for success. Ensure prompt maintenance and, for larger properties, appoint caretakers or house parents to manage day-to-day operations, including student conduct. Addressing these issues helps prevent any risk to your accreditation.
Building strong relationships with university housing offices and NSFAS representatives is also essential. This ensures you’ re informed about any policy or payment changes, allowing you to stay ahead of potential issues.
Consider reinvesting profits into property upgrades or green solutions like solar power to reduce operational costs. You might also diversify your tenant mix by accommodating students from different institutions, which helps to stagger rental payments and improve cash flow.
Finally, protect your investment by securing appropriate insurance, creating clear leases, and having contingency plans for NSFAS payment delays or defunded students. Keep at least six months’ worth of operational costs saved as a buffer to avoid financial distress from unexpected issues. Planning ahead is crucial for long-term success in this sector.
Got Questions? We’ ve got Answers! Send your queries to info @ rei. co. za
Submit now
13