GREAT INVESTMENT OPPORTUNITY
This stunning Sudent Village is located at the heart of one of Midrand's most sought after plots, Glen Austin. The property is currently designated as agricultural holdings and is situated on the commercial belt of Glen Austin with the potential of rezoning to commercial property. Our current business strategy is to offer our rental units for rent to international students who travel from Botswana, Zimbabwe, Namibia, Mozambique and Swaziland as these students are subsidized by their Governments which ensures rent is collected on a timely basis. The students study term is for a period of 10 months, starting in February and ending in November. We recently modified our strategy to include young professionals working Midrand, as this is an area on the verge of substantial growth as they would rent for a longer period of 12 months.
This immaculate property offers 5 residential compounds consisting of:
- 29 Spacious bedrooms with tiled floors and all bedrooms have built in cupboards. There are four separate residential compounds which are self-contained units and can be used to separate students into male and female accommodation. Each residential unit is fully furnished with a bed, desk, table and cupboard to store personnel effect.
- 10 bathrooms which offer showers.
- 10 toilets with basin.
- We have a full time property manager who lives on site to ensure the property is well maintained and enforces our property rules to ensure the students' safety. 1 caretaker room with lounge, kitchen, and a bathroom offers a full bath, toilet and basin.
- Each of the 5 residential compounds offers an open plan lounge with french doors to a spacious patio and an established private garden. The open plan lounge area is located just off of the kitchen all with tiled floors.
- The stylish kitchen offers modern melamine cupboards with tiled tops and a modern hob. The kitchen which includes a fridge, stove and washing machine.
- The Student Village has plenty of visitor parking.
- The Student Village has an entertainment area and a large communal park.
- The complex offers greater security with a fully electrified perimeter fence that surrounds the property, video surveillance monitoring together with 24 hour armed response, pin pad entrance and full time security guard on site.
- Students are required to pay their rental deposits upfront, which are refundable at the end of the lease. The students complete a tenant application form and sign a lease agreement to commit to a 10 month lease and agree to pay rent at the beginning of the month. Our monthly rental rate is R1, 800 for students sharing a room and R2, 500 for students who want their own rooms. Since rental income is earned over a 10 month period, the property has the potential to earn annual rental income of approximately R800, 000 per annum. We currently employ a bookkeeper, property manager, gardener, cleaner and security guard and salaries represent 30% of our rental income for salaries. For utilities, we pay Eskom for electricity and the City of Johannesburg for waste removal, property tax and water consumption, and allocated 10% of our rental income for these expenses. Our maintenance costs include general cleaning costs, general property repairs and adhoc expenses, ensure the property is well maintained and allocated 20% of our rental income for these maintenance expenses. By carefully managing income and expenses, the business can generate a 40% return before finance costs and any capital expenses.
- We have invested and installed pre-paid electricity meters, so the cost and consumption of electricity is passed on to the students directly. Each student purchases a pre-paid card with a fixed amount, the pin number is entered into the electricity meter and when it expires the student would need to top up. We have also installed fire hydrants and fire hoses to meet the fire code requirements. We also have water storage tanks and a water irrigation system in place to recycle the clean water from the septic tank to water the garden.