The term student accommodation has been referred to the requirement of students wanting to pursue higher education and seeking a place to settle down in the main cities where such education is available. Many leave their homes in the hinterland and make their way into the main cities where they know the standards of education are much better. Many foreign students also make their way into cities that are known to provide good higher education standards are therefore require help in the form of student accommodation.
The trend is now very clear. Many individuals are pursuing higher education and are willing to relocate which is leading to this requirement. The captive accommodation already available with the universities and educational institutions are proving to be insufficient to hold so many students and they have no choice but to look elsewhere in the city. While some of the students do manage to shack up with seniors, others have to look for student accommodation facilities.
This demand for student accommodation has led to the creation of student areas in some of the towns. These are typically lodgings of low rent, are near to the education institutions and city centre and are within striking distance of leisure facilities such as gymnasiums, pubs, cinemas and sports clubs. These areas are often not fancied by their neighborhoods, due to negative experiences in the past with some of the students who may not have followed the discipline and good manners that are required when you stay close to civilian neighborhoods. Very often students have indulged in vandalism and rioting as a form of protest. Some of the students have also been involved in drug trafficking, prostitution and other anti social activities leading to a lack of confidence and faith in them. On other factor for this apathy is the poor upkeep of the facilities thanks to the changing nature of the residents each year.
There are such student areas in almost all major cities that provide good standards of higher education. The only positive point for residents close to such student accommodation areas is the fact that this demand for housing has led to a spurt in the real estate prices, contrary to perception. The demand from students is so strong for good housing that they are willing to pay a higher price for the accommodation. This has led some smart landlords looking to rent out their property to brand them as "student houses" in their advertisement so that they are able to attract the right student population for their property and rake in the spoils.
Some cities are however making attempts to provide a much better standard of student accommodation by providing some luxury electronic gadgets so that they can get the students to move in there. They know that students can pay more thanks to the high level of disposal income they have with them due to high student grants and loans.
The Leeds Metropolitan University is the largest university and students flock to this university for their higher studies. They find Student Accommodation Leeds with assistance from Letting agents Leeds for this purpose.
Article Source: http://EzineArticles.com/?expert=Simon_Mahoney
Tuesday, June 8, 2010
Sunday, May 2, 2010
Student landlords benefit form the shortage in rental houses
By Samul Swan
At last there is some good news in the UK rental property markets as demand is now outstripping supply. This points to a positive future for landlords as their property should continue to be in high demand.
One consequence of the increased requirement for let property is that as a landlord you should be able to find a tenant more quickly. According to the Association of Residential Lettings Agents during the first quarter of 2010 the average vacant period for rental property dropped to just 3.6 weeks.
Student landlords in popular university towns and cities may find that the property shortage is even more acute. Higher demand for property should fuel higher rents and fewer periods of vacancy for let property - all of which is good news for student landlords.
Get better rental income on your let property
Following the recent economic downturn, many young people have decided to pursue a degree or higher qualification rather than enter the workforce. There are now 2.4 million students in the UK, many of which will be looking for let property. During the past nine months there has been a 45% increase in demand for student housing and the trend looks set to continue. By tapping into this market, student landlords can expect to see a better gross return on their investment.
Generally speaking, rents are higher for student property than a comparable buy-to-let property - often by as much as 10%. A landlord with the right type of property in the right location for students can look forward to better yields on their rental income. It is anticipated that demand for student lets in cities such as Leeds, London, Manchester and Sheffield will continue to rise, making these locations ideal for student landlords.
Keep property vacancies to a minimum
Any landlord will tell you that one of their main priorities is to keep periods of vacancy to a minimum. One of the advantages of letting property to students is that the house or flat will have tenants for nearly all of the year. Moreover, the landlord will know months in advance if the property will be need for the following academic year, enabling them to plan ahead.
How u-rooms.com can help
If you have a property to let within easy reach of a UK university, let u-rooms.com help you tap into the student rental market. Students are currently starting to look for a flat or house share for the next academic year so now is a great time to move into this market. At u-rooms.com we offer a very competitively priced, yet comprehensive service, designed to make your life easier and help you find the right tenants quickly. Simply visit us at u-rooms.com and list your property. For more information about marketing rental property contact or to list your property contact u-rooms.com.
Article Source: http://EzineArticles.com/?expert=Samul_Swan
At last there is some good news in the UK rental property markets as demand is now outstripping supply. This points to a positive future for landlords as their property should continue to be in high demand.
One consequence of the increased requirement for let property is that as a landlord you should be able to find a tenant more quickly. According to the Association of Residential Lettings Agents during the first quarter of 2010 the average vacant period for rental property dropped to just 3.6 weeks.
Student landlords in popular university towns and cities may find that the property shortage is even more acute. Higher demand for property should fuel higher rents and fewer periods of vacancy for let property - all of which is good news for student landlords.
Get better rental income on your let property
Following the recent economic downturn, many young people have decided to pursue a degree or higher qualification rather than enter the workforce. There are now 2.4 million students in the UK, many of which will be looking for let property. During the past nine months there has been a 45% increase in demand for student housing and the trend looks set to continue. By tapping into this market, student landlords can expect to see a better gross return on their investment.
Generally speaking, rents are higher for student property than a comparable buy-to-let property - often by as much as 10%. A landlord with the right type of property in the right location for students can look forward to better yields on their rental income. It is anticipated that demand for student lets in cities such as Leeds, London, Manchester and Sheffield will continue to rise, making these locations ideal for student landlords.
Keep property vacancies to a minimum
Any landlord will tell you that one of their main priorities is to keep periods of vacancy to a minimum. One of the advantages of letting property to students is that the house or flat will have tenants for nearly all of the year. Moreover, the landlord will know months in advance if the property will be need for the following academic year, enabling them to plan ahead.
How u-rooms.com can help
If you have a property to let within easy reach of a UK university, let u-rooms.com help you tap into the student rental market. Students are currently starting to look for a flat or house share for the next academic year so now is a great time to move into this market. At u-rooms.com we offer a very competitively priced, yet comprehensive service, designed to make your life easier and help you find the right tenants quickly. Simply visit us at u-rooms.com and list your property. For more information about marketing rental property contact or to list your property contact u-rooms.com.
Article Source: http://EzineArticles.com/?expert=Samul_Swan
Wednesday, March 24, 2010
New Price Guarantee
Price Guarantee
At Let and Stay we are so confident in the price that you pay for our service and quality offering that we will not only match but beat any written qoute for accommodation based on the following conditions;
- the accommodation is of similar quality,
- in the same suburb,
- for the same lease term.
Bring your written, verifiable qoute to the office and we will beat the price you pay for the accommodation!
At Let and Stay we are so confident in the price that you pay for our service and quality offering that we will not only match but beat any written qoute for accommodation based on the following conditions;
- the accommodation is of similar quality,
- in the same suburb,
- for the same lease term.
Bring your written, verifiable qoute to the office and we will beat the price you pay for the accommodation!
Monday, March 1, 2010
Student Accommodation under the spotlight
Geraldine Connell
28 February 2010
Could tax changes to make student accommodation cheaper be on there way?
One of the interesting VAT proposals in the Budget is a review and possibly an amendment which addresses the shortcomings of the VAT legislation relating to accommodation as either commercial or residential. In particular, student accommodation appears to be the focus of the change.
It is well known that South Africa's insufficient student housing accommodation has reached crisis levels - there are far more students requiring accommodation than can be catered for at present. The Department of Higher Education and Learning is anxious to resolve this problem quickly and is increasing funding for student accommodation. Furthermore, educational institutions are encouraged to provide student accommodation as cheaply as possible.
The VAT Act exempts certain supplies from VAT, such as education, passenger transport by road and the letting out of a dwelling. The purpose of exempting supplies from VAT is to reduce the ultimate cost to the end-user by not charging him VAT. Ironically, such a mechanism may sometimes not actually reduce the cost to the end user since the VAT incurred by the supplier becomes a cost and is ultimately on-charged to the end user. So for example, the VAT incurred on acquiring a flat cannot be claimed by the person who lets out that flat as a dwelling.
On the other hand, commercial accommodation in a flat which is supplied together with so-called 'domestic goods and services' is subject to 14% VAT if the total annual receipts for that supply exceed R60 000. So one major difference between whether a supply of accommodation is subject to VAT or exempt, depends on whether the accommodation comes with "domestic goods or services". What are these services?
They include any of the following: cleaning and maintenance; electricity, gas, air conditioning or heating; a telephone, television or similar article; furniture and fittings; meals or laundry. If the accommodation is supplied with any of these, it is subject to 14% VAT.
A "dwelling" is defined as any place used primarily as a natural person's place of residence. The letting of such a place is exempt from VAT provided that no domestic goods and services are provided and that the accommodation is provided on a semi-permanent basis, much like acquiring a home. Confusion could arise here as a result of the fact that a "dwelling" is defined to include fixtures and fittings that belong to it. Arguably, this could alter the tax treatment of the supply of the dwelling since it would also fall within the definition of commercial accommodation with domestic goods and services if the R60 000 income threshold were achieved.
On the surface, it appears that charging VAT on accommodation will make it more expensive for students, but this is not necessarily the case. Not only can the landlord claim back all the VAT on the capital and running costs thereby reducing the overheads, but the VAT Act gives a further concession. If the accommodation is provided for periods of more than 28 days, VAT is only payable on 60% of the all-inclusive charge for the accommodation and the domestic goods and services. The reason that only part of the value of such accommodation is taxed where an occupant stays longer than 28 days, is to place people living in commercial accommodation on a long-term basis on a similar footing to those renting ordinary domestic dwellings. Those living in commercial accommodation should not be paying materially more VAT on their basic accommodation than their residential counterparts.
It will be interesting to see whether the VAT law amendments increase the ambit of the exempt supplies in an attempt to make student accommodation cheaper. Detailed calculations should be done to assess whether exemption from VAT really does lower the price of accommodation or not.
*Geraldine Connell is from Deloitte
28 February 2010
Could tax changes to make student accommodation cheaper be on there way?
One of the interesting VAT proposals in the Budget is a review and possibly an amendment which addresses the shortcomings of the VAT legislation relating to accommodation as either commercial or residential. In particular, student accommodation appears to be the focus of the change.
It is well known that South Africa's insufficient student housing accommodation has reached crisis levels - there are far more students requiring accommodation than can be catered for at present. The Department of Higher Education and Learning is anxious to resolve this problem quickly and is increasing funding for student accommodation. Furthermore, educational institutions are encouraged to provide student accommodation as cheaply as possible.
The VAT Act exempts certain supplies from VAT, such as education, passenger transport by road and the letting out of a dwelling. The purpose of exempting supplies from VAT is to reduce the ultimate cost to the end-user by not charging him VAT. Ironically, such a mechanism may sometimes not actually reduce the cost to the end user since the VAT incurred by the supplier becomes a cost and is ultimately on-charged to the end user. So for example, the VAT incurred on acquiring a flat cannot be claimed by the person who lets out that flat as a dwelling.
On the other hand, commercial accommodation in a flat which is supplied together with so-called 'domestic goods and services' is subject to 14% VAT if the total annual receipts for that supply exceed R60 000. So one major difference between whether a supply of accommodation is subject to VAT or exempt, depends on whether the accommodation comes with "domestic goods or services". What are these services?
They include any of the following: cleaning and maintenance; electricity, gas, air conditioning or heating; a telephone, television or similar article; furniture and fittings; meals or laundry. If the accommodation is supplied with any of these, it is subject to 14% VAT.
A "dwelling" is defined as any place used primarily as a natural person's place of residence. The letting of such a place is exempt from VAT provided that no domestic goods and services are provided and that the accommodation is provided on a semi-permanent basis, much like acquiring a home. Confusion could arise here as a result of the fact that a "dwelling" is defined to include fixtures and fittings that belong to it. Arguably, this could alter the tax treatment of the supply of the dwelling since it would also fall within the definition of commercial accommodation with domestic goods and services if the R60 000 income threshold were achieved.
On the surface, it appears that charging VAT on accommodation will make it more expensive for students, but this is not necessarily the case. Not only can the landlord claim back all the VAT on the capital and running costs thereby reducing the overheads, but the VAT Act gives a further concession. If the accommodation is provided for periods of more than 28 days, VAT is only payable on 60% of the all-inclusive charge for the accommodation and the domestic goods and services. The reason that only part of the value of such accommodation is taxed where an occupant stays longer than 28 days, is to place people living in commercial accommodation on a long-term basis on a similar footing to those renting ordinary domestic dwellings. Those living in commercial accommodation should not be paying materially more VAT on their basic accommodation than their residential counterparts.
It will be interesting to see whether the VAT law amendments increase the ambit of the exempt supplies in an attempt to make student accommodation cheaper. Detailed calculations should be done to assess whether exemption from VAT really does lower the price of accommodation or not.
*Geraldine Connell is from Deloitte
Monday, February 1, 2010
Commune Policy grace period deadline looms
By Thuli Malinga: Northcliff Melville Times
Week ending 29 January 2010
The grace period for the new commune policy which started in August last year is coming to an end and slumlords who continue operating illegally will have to face the law come next month.
The new commune policy was started as a result of the continuing conflict between residents and commune residents.
Some of the concerns raised by the community included noise problems resulting from regular partying by students, overcrowded dwellings and the alteration of the suburbs character in some of the properties.
In order to regulate such issues city council proposed a new policy where commune owners would have to adhere to the following:
There should be a maximum of 10 tenants per commune including the caretaker.
There should be not more than two people in any double bedroom.
Provision shall be made for a common room or rooms and kitchens in the commune.
There should be one bathroom per four tenants
The owner or caretaker of the commune should permanently reside on the property for management purposes and accountability.
Commune management should ensure that a compulsory A3 sign is placed on the front boundary of the property.
This sign should have a 24- hour telephone and email address for residents to contact the manager.
City council has warned that compliance of these by-laws will be monitored by a task team. This includes development management, environmental health, Saps, Johannesburg Metropolitan Police Department, councilors, student accommodation forums and residents associations.
They will also have partnerships with tertiary institutions alike. More information on the commune policy can be obtained from the City of Johannesburg website.
Week ending 29 January 2010
The grace period for the new commune policy which started in August last year is coming to an end and slumlords who continue operating illegally will have to face the law come next month.
The new commune policy was started as a result of the continuing conflict between residents and commune residents.
Some of the concerns raised by the community included noise problems resulting from regular partying by students, overcrowded dwellings and the alteration of the suburbs character in some of the properties.
In order to regulate such issues city council proposed a new policy where commune owners would have to adhere to the following:
There should be a maximum of 10 tenants per commune including the caretaker.
There should be not more than two people in any double bedroom.
Provision shall be made for a common room or rooms and kitchens in the commune.
There should be one bathroom per four tenants
The owner or caretaker of the commune should permanently reside on the property for management purposes and accountability.
Commune management should ensure that a compulsory A3 sign is placed on the front boundary of the property.
This sign should have a 24- hour telephone and email address for residents to contact the manager.
City council has warned that compliance of these by-laws will be monitored by a task team. This includes development management, environmental health, Saps, Johannesburg Metropolitan Police Department, councilors, student accommodation forums and residents associations.
They will also have partnerships with tertiary institutions alike. More information on the commune policy can be obtained from the City of Johannesburg website.
Saturday, December 5, 2009
Luxury student digs prove a lucrative investment
From The Times December 3, 2009
Kaya Burgess
It will loom like a razor blade above the City, but when the 33-storey tower block opens next year, it will be tapping into a very different — and very profitable — market to the banks that it will overlook.
Student accommodation is booming. Rentals have proved to be one of the few recession-proof areas of the property market, rising despite the general economic downturn, and Blackstone, the world’s largest private equity company, is among those aiming for a slice of the pie.
Next summer it will open Nido Spitalfields, the second in its portfolio of large-scale, high-end student digs in the capital. The building near Liverpool Street, in the City of London, will open its doors to 1,200 students in time for the 2010-11 academic year.
“The credit crunch really hasn’t hit the student accommodation market,” Maureen McDermott, manager of European student accommodation for Blackstone, said. “We’ve had great success with keeping our building in King’s Cross occupied, and are even planning to open the Spitalfields building a month or so earlier than planned.”
Stuart Grant, a managing director at Blackstone who is overseeing the £250 million project, said: “There are a growing number of students in London and a limitation on the number of beds provided by the private sector or universities. There are more than 260,000 students in London, but only about 45,000 beds. When there is that chronic supplydemand imbalance, it means that as a sector it’s an interesting investment opportunity.”
The students’ pockets will have to be deep enough to afford the £260 per week being asked for the ensuite rooms set in spacious apartments over 33 floors.
“The Nido offer is focused mainly on foreign students, Mr Grant said. “So our customer, in my mind, is not only the student, but also the parent in America or China who is willing to pay up for our product, offering safety, security and good amenities in a central location.”
The New York-based Blackstone knows the development’s area well: the 105-metre skyscraper will overlook Broadgate, the office complex that is half-owned by the private equity fund. On site yesterday, construction workers teetered amid the wind and rain to keep the downpour from seeping into the unfinished building, where a number of showrooms stand ready as an example of the clean-cut luxury that will be awaiting students. Designed by TP Bennett, the building will offer its residents catering areas, a gym, WiFi internet and state-of-the-art mod-cons in all rooms. Where lorries and vans rolled in yesterday will be a lobby with underfloor heating, a games area and a café, paid for with keycards that alert staff if a student has not been in (or out) of their room for a long period.
On Pentonville Road near King’s Cross, Blackstone’s first Nido building — nido means nest in Spanish — is already home to about 900 students from 85 nationalities, 40 per cent of whom are from the United States.
Three years ago Blackstone moved from snapping up traditional real estate and began buying operating real estate such as shopping malls and residences.
Planning permission has been granted for Blackstone to begin work on a third student site in Notting Hill, West London, which would open to 272 students in early 2011.
Kaya Burgess
It will loom like a razor blade above the City, but when the 33-storey tower block opens next year, it will be tapping into a very different — and very profitable — market to the banks that it will overlook.
Student accommodation is booming. Rentals have proved to be one of the few recession-proof areas of the property market, rising despite the general economic downturn, and Blackstone, the world’s largest private equity company, is among those aiming for a slice of the pie.
Next summer it will open Nido Spitalfields, the second in its portfolio of large-scale, high-end student digs in the capital. The building near Liverpool Street, in the City of London, will open its doors to 1,200 students in time for the 2010-11 academic year.
“The credit crunch really hasn’t hit the student accommodation market,” Maureen McDermott, manager of European student accommodation for Blackstone, said. “We’ve had great success with keeping our building in King’s Cross occupied, and are even planning to open the Spitalfields building a month or so earlier than planned.”
Stuart Grant, a managing director at Blackstone who is overseeing the £250 million project, said: “There are a growing number of students in London and a limitation on the number of beds provided by the private sector or universities. There are more than 260,000 students in London, but only about 45,000 beds. When there is that chronic supplydemand imbalance, it means that as a sector it’s an interesting investment opportunity.”
The students’ pockets will have to be deep enough to afford the £260 per week being asked for the ensuite rooms set in spacious apartments over 33 floors.
“The Nido offer is focused mainly on foreign students, Mr Grant said. “So our customer, in my mind, is not only the student, but also the parent in America or China who is willing to pay up for our product, offering safety, security and good amenities in a central location.”
The New York-based Blackstone knows the development’s area well: the 105-metre skyscraper will overlook Broadgate, the office complex that is half-owned by the private equity fund. On site yesterday, construction workers teetered amid the wind and rain to keep the downpour from seeping into the unfinished building, where a number of showrooms stand ready as an example of the clean-cut luxury that will be awaiting students. Designed by TP Bennett, the building will offer its residents catering areas, a gym, WiFi internet and state-of-the-art mod-cons in all rooms. Where lorries and vans rolled in yesterday will be a lobby with underfloor heating, a games area and a café, paid for with keycards that alert staff if a student has not been in (or out) of their room for a long period.
On Pentonville Road near King’s Cross, Blackstone’s first Nido building — nido means nest in Spanish — is already home to about 900 students from 85 nationalities, 40 per cent of whom are from the United States.
Three years ago Blackstone moved from snapping up traditional real estate and began buying operating real estate such as shopping malls and residences.
Planning permission has been granted for Blackstone to begin work on a third student site in Notting Hill, West London, which would open to 272 students in early 2011.
Thursday, December 3, 2009
Corporates squeeze market for private student landlords - UK
Posted on December 1st, 2009 by steve
Institutional investors are deserting the commercial property sector to pump hundreds of millions in to student housing investments.
Fund managers see student letting as more stable than commercial letting as the double risk of offering incentives to tenants and the chance a tenant may go out of business do not apply to students.
HMO landlords under pressure
Private student landlords are coming under pressure from two sides now – councils stepping up regulatory requirements and licensing costs on HMOs (houses in multiple occupation) and big corporate landlords with the financial clout to house hundreds of students in university towns and cities.
The move by institutional investors is confirmed by the UK’s largest student room provider UNITE, a public listed company that has £325 million to invest in the sector – with £133 million already raised by institutions with another £23 million pledged.
The company also said like-for-like rental growth increased to 9.7% between July 1 and November 18 2009.
Students pay corporates millions in rent
UNITE has a portfolio of student accommodation valued at £877 million at the end of September, and this is expected to grow to more than £1 billion. The company houses 39,000 students in 126 properties in 33 towns and cities across the UK.
Another large student housing investor, University Partnerships Programme (UPP) has signed off a £115 million student housing deal with the University of Nottingham.
UPP has committed to refurbishing 850 rooms, providing students with affordable, high quality accommodation.
This major deal follows UPP’s recent £133m transaction with the University of Exeter.
Through these two transactions, UPP has put £250 million of new private investment, including institutional funds, into the higher education sector in less than six weeks.
UPP expects to provide accommodation for 35,000 students by 2012. Currently, UPP has 18,000 rooms for students paying £85 million a year in rent.
Institutional investors are deserting the commercial property sector to pump hundreds of millions in to student housing investments.
Fund managers see student letting as more stable than commercial letting as the double risk of offering incentives to tenants and the chance a tenant may go out of business do not apply to students.
HMO landlords under pressure
Private student landlords are coming under pressure from two sides now – councils stepping up regulatory requirements and licensing costs on HMOs (houses in multiple occupation) and big corporate landlords with the financial clout to house hundreds of students in university towns and cities.
The move by institutional investors is confirmed by the UK’s largest student room provider UNITE, a public listed company that has £325 million to invest in the sector – with £133 million already raised by institutions with another £23 million pledged.
The company also said like-for-like rental growth increased to 9.7% between July 1 and November 18 2009.
Students pay corporates millions in rent
UNITE has a portfolio of student accommodation valued at £877 million at the end of September, and this is expected to grow to more than £1 billion. The company houses 39,000 students in 126 properties in 33 towns and cities across the UK.
Another large student housing investor, University Partnerships Programme (UPP) has signed off a £115 million student housing deal with the University of Nottingham.
UPP has committed to refurbishing 850 rooms, providing students with affordable, high quality accommodation.
This major deal follows UPP’s recent £133m transaction with the University of Exeter.
Through these two transactions, UPP has put £250 million of new private investment, including institutional funds, into the higher education sector in less than six weeks.
UPP expects to provide accommodation for 35,000 students by 2012. Currently, UPP has 18,000 rooms for students paying £85 million a year in rent.
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