Everybody in student accommodation understands what students would like to have is not always available.
They will also understand what is required legally before student accommodation will be approved by the tertiary institutions.
But developers need to be innovated in what they develop to get the maximum out of the buildings that they build or renovate.
When looking for a site for student accommodation location is paramount and should be well within a 3km distance from the varsity site.
This is to make transport as inexpensive and as easy as possible.
A distance of 1km or less is even more ideal as it allows for walking or cycling.
Correct zoning or the ability to get it easily is essential.
While it is possible to rezone, government services are not the fastest and waiting years for rezoning can be highly expensive in holding costs and time.
Don’t overlook existing buildings that are already correctly zoned.
Townhouse schemes and blocks of flats will have the right zoning and services available.
Though it will mean negotiating with each individual owner, it can be done.
In our city of Bloemfontein we are sitting with a 28-unit flat site sitting on 1.6 hectares of land right across the road from one of the institutions.
Taking an existing correctly zoned building means you can start building immediately for over 450 students.
It is worth the effort of negotiating to buy out the existing owners.
The same could well apply to old shopping centres which, while zoned for business, allow for the building of flats too.
Even if this means rezoning back to bulk flats to reduce the rates bill at a later stage.
Converting an existing building, usually an office block, can be possible, but is often not worth the effort.
If it does not work out financially and physically it is often better to demolish and rebuild at not much extra cost.
You are quite likely to get additional units and a far more practical design.
Talking of design, be innovative.
Building bachelor flats may be the most ineffective type of unit to build and could well cause lack of parking problems.
Designing multi-room apartments with communal bathrooms, kitchens and kitchen/dining room can be vastly more effective and efficient.
This is popular overseas and was recently viewed by this writer in Budapest.
Low maintenance cost is essential as maintenance is the major cost in any development.
Solar electricity supply can easily be included in a new design and the cost is written off for tax in the first year.
Take out a building wide fibre connection or internet and students will love you.
Look to add a few extras in your building, which is another reason to build big.
A laundry, coffee shop, superette or gym will make your building wanted.
Lastly, get your management right before you start. Good management will make or break your scheme.
- Mike Spencer is the founder and owner of Platinum Global. He is also a professional associated property valuer and consultant with work across the country as well as Eastern Europe and Australia.
