7 steps to building a successful student housing portfolio

• Student accommodation remains one of South Africa's highest-yielding and most resilient property investment sectors.
• A national shortage of more than 500,000 student beds presents a significant long-term investment opportunity.
• Success depends on building the right structure, securing finance and partnering with experienced investment specialists.

Student Housing Blueprint: Invest for long-term success

South Africa's student accommodation market continues to offer one of the country's most compelling property investment opportunities, with strong rental demand, attractive yields and long-term growth potential.

That was the message delivered by Michael Brink, a successful student accommodation investor, Century 21 estate agent and property entrepreneur, during his presentation, "The Blueprint: Steps to Succeed in Student Housing Investment", at the Prosperity Enterprises Property Investors Evening in Bloemfontein on 23 July.

Drawing on his own experience of completing more than 70 property sales annually while managing a portfolio of over 150 student beds, Brink shared practical insights into why student accommodation has become one of his preferred investment strategies.

Demand continues to outstrip supply

‍One of the strongest fundamentals supporting the sector is the significant shortage of purpose-built student accommodation across South Africa.

Brink highlighted that the country currently faces a shortfall of approximately 500,000 student beds, creating an enormous opportunity for private investors willing to help meet growing demand.

With NSFAS-funded students increasing to around one million annually and tertiary enrolments continuing to expand, he believes demand for quality accommodation will remain strong for many years.

Rather than seeing the housing shortage as a problem, Brink encouraged investors to view it as an opportunity to provide a much-needed solution while building long-term wealth.

Why Student Accommodation stands out

‍Brink believes student accommodation offers several advantages over traditional residential property investments.

Among the key benefits are:

• Higher rental income through multiple tenants.
• Strong and consistent demand driven by university enrolments.
• Greater resilience during economic downturns.
• Reduced vacancy risk through diversified rental income.
• Excellent long-term capital growth potential.

Unlike a conventional apartment with a single tenant, student accommodation can often accommodate multiple occupants, significantly increasing rental income while spreading rental risk.

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"If one tenant experiences financial difficulties, the remaining tenants continue generating income," Brink explained.

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Building wealth using bank finance

‍One of the presentation's central themes was using leverage wisely.

Brink reminded investors that property remains one of the few investment assets banks are willing to finance extensively.

By using a home loan to acquire an income-producing asset and allowing rental income to service the debt, investors can steadily build equity while tenants effectively help repay the property's financing over time.

He encouraged attendees not to overlook their borrowing capacity, arguing that affordability should be viewed as an opportunity to acquire appreciating assets rather than simply unused credit.

The Blueprint to getting started

‍Brink outlined a straightforward roadmap for aspiring investors entering the student accommodation sector.

1. Determine your buying power‍

Before searching for property, investors should obtain mortgage pre-approval to understand exactly what they can afford.

2. Build the right investment structure‍

Rather than buying properties individually without a long-term plan, Brink recommended establishing the appropriate trust or company structure from the outset to support future portfolio growth.

3. Partner with investment specialists‍

Investors should work with estate agents who understand student accommodation rather than relying on general residential expertise.

An experienced investment-focused agent can help identify high-performing opportunities and avoid costly mistakes.

4. Monitor the market daily‍

Setting up property alerts on platforms such as Property24 enables investors to identify quality opportunities quickly before they are sold.

5. Negotiate smartly‍

Brink encouraged buyers to negotiate strategically, particularly where properties have remained on the market for extended periods.

6. Understand the financial model‍

Successful investors should also familiarise themselves with:

• NSFAS funding cycles.
• Municipal planning requirements.
• Zoning regulations.
• Body corporate rules.
• Cash-flow planning.
• Maintenance and operating costs.

Proper preparation ensures investors can comfortably manage the initial funding period before rental income stabilises.

Property investing doesn't need to be complicated

‍Throughout his presentation, Brink emphasised that successful property investing is built on consistency rather than complexity.

He encouraged attendees not to be intimidated by the sector, noting that disciplined planning, sound advice and a long-term perspective often matter far more than advanced financial knowledge.

His own journey, from full-time estate agent to investor managing more than 150 student beds, demonstrates how focused investing can generate recurring income while building lasting wealth.

Looking Beyond Property

‍Brink also shared an update on Century 21 South Africa's recent ownership changes, highlighting new opportunities for entrepreneurs interested in establishing Century 21 franchises in markets across the country.

He encouraged aspiring business owners and experienced estate agents to explore franchise opportunities as the brand embarks on its next phase of growth.

Michael Brink's presentation reinforced why student accommodation continues to attract investors seeking reliable income and long-term capital growth. While success requires careful planning, sound financing and specialist advice, the fundamentals remain compelling.

With demand continuing to exceed supply and government-backed student funding expanding, investors who build the right structures and take a disciplined approach are well positioned to benefit from one of South Africa's most resilient property investment sectors.

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