How To Make Money From Building Student Hostel (Hall Of Residence) Accomodation

Due to low funding of the educational sector of the country, it has led to the decay in the infrastructural facilities of our educational system. That is one of the reason why students hostel accommodation has been in short supply in the country’s Universities, Polytechnics, Colleges of Educations and other Tertiary Institutions.

Except for the books, laboratories, equipments etc. Student hostels are so limited in meeting the accommodation needs of ten of thousands of students being enrolled in

most of the tertiary institutions individually from all over the country.

Therefore, the shortage of accommodation for students has indeed created an investment opportunity for business investors who want to invest in Real Estate. Building student hostels otherwise known as Hall of Residence is in hot demand as some students don’t care spending any amount on hotel accommodation nearer to their school.

Acquire a Property Near Tertiary Institution

Try to get a land closer to a University Polytechnic or College of Education and construct a student hostel on it or you may buy up an existing property and turn it to student hostel, you make it an off-campus hostel. This is a profitable investment that will generate you decent flow of money annually.

Build A Nice Hostel

The structure of your hotel will be determined by your capital, area of land, and the class of occupants you wish to have as tenants. Hostel accommodation can be classified into three major classes which are:

Low Class Hostel for students from low income earner families or sponsor.

Medium Class Hostel for students from average families or sponsor while the last which is High Class Hostel for students from rich families or sponsor. The one you wish to build now depends on your budget and discretion.

Rentage

This depends on the location and living standards of the students of the school, the more the hostel is nearer to the school will be the more in rentage cost, and also the structure of your hotel and facilities provided will determine the cost.

Unarguably a self-contain hostel will cost more than face-me-I-face you hostel. For example, a Face-me-I-face-you hostel might cost N60000 or more annually while a self-contain renatge can cost N120000 or more, but no matter how students will still rent hostel.

Profitability

It is very profitable to invest in building of student hostel because it is always in high demand and you can also increase your rent yearly, you collect the rentage for a year outrightly. For example if you build a Face-me-I-face-you hostel consisting of ten rooms and you charge N60000 as the renatge fee, multiply it together and it will give you N600000 annually and it could even be more than that.

Challenges

Just like any other business you will have some challenges one way or the other, in student hostel investment you should understand the way and manner of students.

The following are some of the things to take note of and you should understand that:
Your occupants will not be there forever

Your rentage term should not be more than a year

You wont lose money during holiday if you collect rent annually

Collecting security deposit will caution unruly students against damages to your property

You should make sure there is a clear terms and conditions given to your occupants on payment, conduct and responsibilities before they move in.

You should get important information about their parent/sponsor and departments

The Advantages of Building Student Hostel are:

Quick Returns on Investment

For the fact that students rent hostels on an annual basis makes it an opportunity for you to recover your investment and make profit within a short period of time. You may also save for expansion of construction of another hostel

No Owing of Rent

Students renting hostels have to pay on annual basis and before a student can be allowed to pack in he/she will have to pay rentage fee first.

High Rentage Fee

As students will be seeking accommodation desperately especially during a new session, more students will definitely rent available accommodation because the demand will be very high and you can even use that opportunity to increase your rentage but not too much.

With all the above analysis, it is guaranteed that you will make more money in investing on building student hostel if properly managed. So get a property and develop it, then make money.