17 Benefits Of Investing In Student Housing
Taking a leap to decide to invest in real estate is something to pat yourself on the back—good job for bringing the risk to gain high returns. Student housing investment is an excellent asset class that has proven to be resilient to economic fluctuations. It has been known as one of the stable investment opportunities. The current coronavirus pandemic and the most recent economic recession have proven this point of merit.
Some investors note that investing in student housing could be pretty risky and scary. With possibility of students thrashing the place, it’s no wonder why some people feel this way. However, the reality is that student housing is an authentic component of real estate.
Nowadays, many companies are building their business models around student housing because of its growing business potential and high returns. Putting money for building and maintaining college apartments, like sunrisevillageapts.com, is a great investment move to take advantage of today.
If you are having doubts until now, read more of the benefits of investing in student housing:
- High Enrollment
Despite the raging tuition fees among many countries worldwide, the demand for undergraduate and graduate degrees is increasing. Student enrollment is rising continuously, and parents continue to send their children to college. The need for education is still huge.
When it comes to real estate, the typical factors in perceiving and considering are job growth and demographics. But, in this case, high enrollment is the primary indicator for student housing. Applications and their continuing processes indicate that a specific area, especially if it’s near a university, will be populated with students.
- High Demand
If you have tried being an in-house university student, you’ll agree that most schools promote or offer housing on campus only to first-year students. This is because they can’t keep up with the high demand.
Starting when universities stopped sustaining these increasing demands among students, third-party real estate investors and developers have started coming in to take advantage of this business opportunity. Purpose-built establishments and apartments are now constructed just outside of campuses. This real estate trend is witnessed all across the country and even overseas too.
The number of students pursuing further education has reached 2.28 million in the school year 2015-2016. This data alone proves why there is a vast pool of demand for student accommodations.
Many student housing investments are turnkey, so all you need to do is find student tenants. You don’t need to shell out money for remodeling or home improvements for your property investment. Many developers nowadays buy out large apartment complexes or condominiums and have each unit rented out. Sometimes, they sell these units too.
When such opportunities arise, you can purchase a smaller unit from that large complex and have a turnkey investment where they will be the ones to manage it. This is a convenient way for you to make money, as you don’t need to do anything.
It’s natural to hear the term ‘recession-proof,’ which is often claimed by many business analysts. Although they may be valid, sometimes they’re not. Nonetheless, student housing is an investment that is genuinely resilient to the economic downturn.
In reality, when a local crisis happens, the opposite effect on student housing happens. In contrast to what other real estate properties experience, more students or an increasing number of people apply for student housing. The reason is that they believe that an undergraduate degree will give them more possibilities to land a job when the labor market has collapsed or is impossibly competitive. People do their best to afford college, and those who finished a bachelor’s degree would think that a master’s degree is an even better solution.
Hence, the demand does not change, even during a recession. People never stop going to school, even when the economy is suffering.
Another critical phenomenon is the online learning alternative due to the COVID-19 pandemic. Although it has affected many student housing properties, they managed to reopen since many universities announced their intention to go back to on-campus learning. This scenario serves as an example of how resilient a student housing investment can be.
When your student housing property is located in one of the vibrant places in your city or town, you won’t need to market it to increase occupancy manually. These locations usually already have nearby restaurants, art galleries, malls, and nightlife, so these establishments become magnets for students to rent your housing unit.
Say goodbye to posting advertisements everywhere to seek out tenants. Let the tenants reach out to you. These college town properties usually sell themselves, so you have very minimal effort for promoting them.
- Guaranteed Rent
Although some real estate owners have a negative judgment regarding students not paying on time or difficult tenants, students are actually responsible payers most of the time. The best thing about student housing is that they are usually good tenants or have a parental guarantor, which ensures no problem with rental collections.
- Students Could Be Long-Term Tenants
Many students either study for associate degrees that last for two years or an undergraduate degree that lasts up to five years. They may even extend their housing terms if they plan to proceed to higher education, like master’s or doctor’s degrees. Due to the duration requirements for college, this would mean that students are long-term tenants.
Most landlords that aren’t in the student housing industry may have a hard time listing their rental properties, but not with student apartments because they usually stay until they graduate from college.
- No Need for Car Space
Since most of your tenants are living close to the university, they won’t need to drive a car. Some may not afford a car, either. This will be an advantage on your end because you won’t have to provide car space.
- No Chance for Losing All Income
Investing in student housing has a 100 percent chance of not losing your entire income. Unlike other rental business models, you get to retain some income source because there will always be enough students occupying your property.
It’s a big swing for some private property owners who rent the entire home to a family. When the whole family leaves, there will be zero income for you.
The good thing about a student apartment is that even if some students leave and stop renting, there will still be some income left due to the other students renting continuously. It may not be ideal to have some vacancy, but it sure is better than losing your total income.
- Less Delinquency
Although there is nothing like a guaranteed investment, student rentals can be one of the closest things. Even when you encounter irresponsible students and run from their financial obligations, you will always have guaranteed income through your parents. It’s not uncommon to have the parents sign guarantees, so your payment will be protected.
Also, a large majority of students are responsible for their finances. This means some hand out their rent fees on the first of the month to ensure that they have secured their housing expenses already paid. This makes the student rentals have lesser delinquencies than other areas in real estate.
- International Student Tenants
Since your student housing property is located in a college town, you can expect many international students seeking out to rent. Universities in America are very active in attracting students from other countries. There will be a high demand for your property, and in turn, you will be left with no risk of having zero income.
- Concrete Structures
Most student rentals are built for comfort, so they usually come in concrete and high-quality construction materials. Students could not create considerable damage, unlike with other properties that may have used light materials.
The concrete structures also become more attractive for students to live in. This becomes a selling point for you to market. Young people always prefer to stay in a living space made of concrete because it gives them an impression of safety and security.
- Price Appreciation
Student housing properties usually have a good prospect for price appreciation in the future. Since many other investors will be interested in buying a property around this high-traffic area, the properties will increase in value almost every year. If you plan to sell and make more money through asset sales and profits, you can do so by buying now when it’s still affordable.
You may buy a purpose-built property now and have it rented out for some years. When the time is right, and the real estate has boomed enough, then you can sell your assets and make big profits.
- Maintain Market Rents
Some states in the country implemented rent control prohibiting property owners from raising rents until they get a new tenant. Unfortunately, this could be a real pain for them, especially if the existing tenants have no plans of moving out. Because of this policy, you are not entitled to ‘mark to market.’
However, when it comes to student rentals, you have the chance to do this simply because you will have an opportunity to attract a new crop of students every two years or so. This will not be a downside for you even when your property falls under a state that implements rent control.
You will always have new students come into your property because they will soon move out after finishing their undergraduate studies. Most of them often transfer and find a different place to live, which might be closer to where they’re going to work soon.
- Managed Property Investment
If you invest in custom-built student accommodation, it usually already includes property management. This allows you to entrust the administration to experts like the university itself or building administrators. This is intelligent investment management that is active and proactive.
On another note, you may also reach out to third-party real estate property managers who can do all the tasks that involve your property.
- More Significant Returns
The best advice to take when investing in student housing is to spread out your investments into a few stable properties with credible operators and, at the same time, take a risk to invest in new properties around some areas that have the potential for growing demand. Doing so will create a more balanced portfolio, so even if one property suffers from unpredictable circumstances, your overall investment will still balance out.
If you invest in a diversified and concentrated single asset, your returns are secure and sure. On the contrary, if you invest in several acquisitions, there are also opportunities for good returns with minimal risk.
Hence, the key is to spread out your student housing investment as much as possible because this will be a surer way to generate your desired returns.
- Student Accommodation Is Attractive
The amenities and facilities present in purpose-built student accommodation are already secured. These benefits are imperative for the daily lives of students and occupants in the building premises. For example, they can enjoy communal areas, high-speed Wi-Fi, and study areas. All these amenities become available and attract many student tenants.
One of the best features that your student housing can have is when the location is near to their university or close to shops, cafes, local nightclubs, and workplaces. When you choose to invest in student housing, you will benefit from higher yields and shorter void periods. This entails the certainty and security that many investors are looking for.
Student rentals, in summary, are a significant investment. Depending on the area you choose, you will indeed have the best returns, especially when it’s near a university, coffee shops, restaurants, and workplaces. Like any investment, though, there are always risks involved. What you need to do is to lessen the risk and contain it.
When you think about the trouble of managing a student housing unit or apartment, feel free to ignore this because you can always find a third-party real estate management company that can take over all the operations for your property.
Take advantage of investing in student rental properties if you are familiar with an area where it’s booming with students and lots of traffic. Invest now and wait for your returns to generate.
Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.
Guide for Obtaining a Domicile
Obtaining a Domicile, The domicile certificate was introduced in 1951 to register Pakistani citizens, according to the Daily Express, a Karachi-based daily (26 Apr. 2012). A domicile certification is issued for admission to state colleges (Academic 5 Dec. 2012; The Express Tribune 26 Apr. 2012), school systems universities (Academic 5 Dec. 2012), and government jobs, according to authorities (The Express Tribune 26 Apr. 2012). A residence certificate also is necessary for admittance to higher education institutions, according to other sources BBC 7 June 2012; University of Engineering and Technology 2012.
Federal Government could grant a certificate of domicile to every authority in connection with whom it is satisfied that he may have ordinarily resided in Pakistan for a period of just not less than one year leading up to the making of the application but has acquired a domicile within it onto an application being made to it in the specified format and containing the read the instructions. (Section 17 of Pakistan’s 1951 Constitution).
Obtaining a Certificate of Domicile (Certificate of Residence)
A certificate of residence can indeed be granted by the federal or provincial government, or any district magistrate authorized by the provincial government, as per the Pakistan Citizenship Rules, 1952. Pakistan 1952, Sec. 23. So according to Pakistan’s Citizenship Rules.
- An application for a certificate of domicile should be made in duplicate in Form P, and must be preceded by an affidavit affirming the truth of the statements made in it, and that the applicant still hadn’t migrated to India after March 1, 1947, or even that, having done as such, had brought back to Pakistan under a permit for relocation or permanent return issuance via an officer auth.
- Any authority with whom an application is viewed has the right to require whatever evidence it deems essential to fulfill itself that the facts presented in the application are accurate and also that the applicant has also been continuously citizen in Pakistan for at least yet another year and intends to live there permanently in Pakistan.
According to sources, when applying for a job
According to sources, an applicant needs to provide the following information when applying for a certificate of domicile, his or her name; parent’s name; place of residence in Pakistan; previous address from outside Pakistan; date of arrival at the place of domicile; marital status; the name of spouse; names of children and one’s ages; barter or occupation; and identifying marks. The above information is included in a certificate of domicile obtained from the police website in the town of Jhelum in Punjab Province, and also the individual’s portrait in the lower right-hand corner of the certificate.
What is a Domicile Certificate?
In general, a state government issues a domicile certificate or a residence certificate to verify that now the individual who possesses the certificate is a resident of the state or union territory stated on the document. A woman who was not born in a Union territory but is married to a man who is a legal citizen of that State or Union Territory or is qualified for a State’s or Union Territory’s Domicile Certificate also is able to qualify for one.
A domicile certificate is a certificate that allows people to obtain numerous benefits such as education, employment, as well as other benefits. Resident Quotas inside the Public Service and educational institutions, and also jobs where area residents are preferred.
How to apply for a domicile in Islamabad?
Per the official government website of the Islamabad Capital Territory, anybody who has lived in Islamabad for a year or longer is able to qualify for an Islamabad domicile. Unless they already hold a domicile from some other city, they must have the existing document annulled while applying for just a fresh one. The following is a list of documents needed to obtain a Certificate of Domicile in Islamabad.
Applicants above the age of 21 should submit the following information
- Proof of profession or trade
- two pictures (passport size)
- A photocopy of the applicant’s CNIC is required.
- A copy of a father’s or husband’s CNIC is necessary.
- one rental agreement from the beginning (electricity, gas, or telephone)
- A copy of proof of address in Islamabad, such as a lease agreement or an allotment letter
- If you do have children, a copy of Form-B is needed.
- In the case of government workers, a letter of permission from the department is required.
- a photocopy of your SSC or matriculation certificates
- A copy of a Marriage Registration Certificate in the case of married people.
- A NOC from the native district is required if you have a dual address on your CNIC.
Applicants under the age of 21 must complete the following steps
- 2 photos of passport size
- A photocopy of the applicant’s CNIC or Along card is required.
- A copy of the mother’s or father’s CNIC is necessary.
- 1 copy of a parent(s)’ Domicile Certificate, upon which the applicant’s name appears
- A photocopy of your SSC or Matric certificate, as well as evidence of your trade or occupation
The Application Process For Domicile In Islamabad
The following is a step-by-step guide to applying for Domicile in the capital city.
- Send a PKR 200 challan to the National Bank of Pakistan’s F-8 Markaz branch or the State Bank of Pakistan’s C-03806 District Magistrate Islamabad account.
- Bring your challan receipt, application form for domicile document, as well as other necessary documents to a Citizen Facilitation Centre in Islamabad.
- Wait for your round by taking a token from the counter.
- Pay the processing fee of PKR 500 at the desk whenever you come in for data entry.
- Your e-receipt will be emailed to you.
- Pick up your Domicile Certificate at the Citizen Facilitation Centre mostly on an e-receipt date.
It is important to mention that when applying for a Domicile in Islamabad, the applicant must appear in person with his or her authentic documentation.
The following are the contact details for the Citizen Facilitation Centre in Islamabad
- Address: G-11/4, Islamabad, ICT Administration Complex
- Phone: 051-9108194
- Submission Timings: 9:00 a.m. to 1:00 p.m. Monday through Thursday | 9:00 a.m. to 12:00 p.m. Friday
- Delivery Timings: 9:00 a.m. to 3:00 p.m. Monday through Thursday | 9:00 a.m. to 12:00 p.m. Friday
- Processing Time: 7 days
- Total Fee: (Challan + Processing Fee) PKR 700
How To Apply For Domicile In Lahore?
Those interested in obtaining a Domicile in Lahore should go to the provincial government’s e-Khidmat Markaz.
Documents Required In Lahore For A Domicile Certificate
Let’s have a look just at the documents required to achieve a Lahore Domicile.
- Forms P and P1, duly completed and signed by the applicant
- The affidavit submitted by the applicant and certified by Oath Commissioner on PKR 50 stamp paper (Optional)
- Two passport-size photos with such a white backdrop are needed.
- CNIC or B-form documentation of the applicant
- Bank receipt with such a copy of the father’s or husband’s CNIC AC Verification Form, that might or might not be certified.
- At least one of the Entitlement Documents listed below will be required.
- Documents proving ownership of property Fard, ownership paperwork, or a housing registry, for instance.
- Electricity, gas, and phone bills
- Certification of residency (rental agreement)
- Documents Academic Disciplines (Matriculation or above certificate)
- The applicant’s vote is registered on the voter list of the UC.
The Domicile Application Process In Lahore
- Have a challan form from the e-Khidmat Markaz or the nearest National Bank of Pakistan branch.
- Pay the PKR 200 challan
- Collect the required Domicile request form from e-Khidmat Markaz. You can also obtain it ahead of schedule from the e-Khidmat Markaz official government site.
- Fill out all the Domicile Application Forms and link them with your other documents.
- Once you’ve appropriately diagnosed your documents and applicant, you’ll send an automated.
- Enter your tracking ID on the e-Khidmat Markaz website to track your application. You could also use their SMS Gateway by sending your application ID to 9100, calling their toll-free line, or installing their mobile app.
- Get your Certificate of Domicile (Certificate of Residence).
To apply for just a Domicile in Lahore, the applicant has to go to the center in person.
The following is the list of the e-Khidmat Markaz in Lahore.
- Lower Mall, Anarkali, Lahore; Jinnah Hall (Town Hall), Jinnah Hall (Town Hall), Jinnah Hall (Town Hall), Jinnah Hall (Town Hall), Jinnah Hall (T
- 042-99214572 is the phone number to call.
- 0800-09100 is a toll-free number.
- Monday through Saturday, 9:00 a.m. to 5:00 p.m. Monday through Friday, 9:00 a.m. to 5:00 p.m.
- Lunch Break: 1:00 p.m. to 2:00 p.m. on all days except Friday | 12:30 p.m. to 2:30 p.m. on Friday
- PKR 200 (total fee)
- 16-day processing time
In Karachi, the procedure for obtaining a domicile and a PRC is as follows:
But if you’re a Karachi resident who requires a domicile and PRC (Permanent Residential Certificate) for educational or employment purposes, deliver the following documents to the Deputy Director’s Office in your district.
Karachi’s Domicile and PRC Requirements
- Unattested five (5x) pictures (passport size)
- CNIC (original and copy) – Attested (for those under the age of 18 years, submit a copy of Form -B).
- Verified copies of all academic transcripts back to the modern year
- Applicants under the age of 21 must provide copies of their CNIC and their father’s address.
- In the case of the government employee, a copy of their employment certificate which has been attested is required.
- Attested proof of residence (electric or gas bill, if on rent copy of rent agreement)
- For married males or females, a copy of their spouse’s CNIC, copies of their children’s identity documents, or Form B – Attested
In Karachi, how to go with Domicile and PRC
- At National Bank, D.C. Office Branch, pay a charge challan of Rs. 200/-.
- Place just one stamp on every copy.
- Before submitting applications for domicile, have it attested by an Oath Commissioner?
- If necessary, the head of the department can demand anyone else document as proof.
- Domicile and PRC Instructions in Karachi
- You must bring your original documents and a set of photocopies with you.
- Domicile business hours are 9:00 a.m. to 12:00 p.m.
- In the case of applying for domicile and PRC, the applicant’s CNIC must have an address in the same Karachi district.
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