Is investing in student real estate a good idea?

Are you ready to take your first steps in property investment or are you looking for a suitable solution for your student child (or grandchild)? Student real estate is a safe and accessible investment, even with a relatively small budget. Due to the increasing number of students, the demand for accommodation is also rising. It is a low-risk investment with a high return (4.5 to 5%). As a (grand)parent, you do not only not pay rent during your studies, you can also enjoy a nice profit in the long run. How do you choose the right investment property for the student of today and tomorrow?

Whether you choose a new building or a renovated building, know that students are really after quality and living comfort. In the rooms, for instance, this means a super-fast internet connection, digital television and a private bathroom and/or toilet. In the communal areas, they expect a pleasant atmosphere and facilities that meet their needs. The presence of a covered and closed bike shed certainly offers great added value. The more quality and comfort, the easier it will be to rent out your property.

Nowadays, you will not only find students in the traditional student cities such as Leuven and Ghent. Mechelen and Hasselt are real booming hubs for student real estate. When selecting a property, the most essential factor is its location in relation to the college or university and the student district. Close to public transport is good; walking or cycling to the campus is even better. Be sure to inquire at the relevant school or city about the future plans for the nearby campus.

To maximise returns, it is vital to aim for continuous rental. It is also important that your investment and the work it creates is in line with your expectations.

Letting to students whereby the rented property does not serve as their main residence falls under the Flemish Housing Decree for Student Lettings. This type of rental has different rules and regulations than the traditional rental market. For the tax authorities, however, the rules regarding purchase, sale and rental income are similar or comparable. Additionally, student real estate is subject to environmental permits, health and safety regulations and quality standards. These can also differ from city to city. The key is to inform yourself well beforehand.

There are three major rental periods per academic year: the start of the two semesters and the summer holidays. If you miss these times, your rent chances dwindle enormously. Do some research in advance to determine where it would be best to offer your accommodation. Enquire at the nearby faculty. A thorough preparation and solid plan always brings the greatest results.

Traditionally, the management of student real estate is a bit more intensive because the rental period is shorter. Strong house rules and accurate follow-up are essential. If you are not eager to take on such tasks yourself and to be permanently available to your tenant in case of problems, you can always use professional property managers to relieve you of every aspect. This way, you can enjoy the return of your investment in peace.

Student real estate is the ideal stepping stone for investors with a smaller budget who are looking for a safe investment with high yield. For (grand)parents with a studying (grand)child the acquisition of a student room can offer a nice solution. Be sure to read our starters guide for real estate investors for more tips.

Our team is always at your disposal for further information about investing in student real estate. You can call us at 078 48 47 00 or mail us at info@ap-p.be to schedule an appointment.

In the meantime, take a look at our current offer of student rooms:
- Leuven (3000): Kapucijnenvoer 163/2
- Leuven (3000): Kapucijnenvoer 163/3
- Antwerp (2060): Lange Slachterijstraat 90
- Brussels (1000): Sint-Laurensstraat 2

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