South Africa Student Housing Business Plan

South Africa Student Housing Business Plan

Looking to open a student accommodation rental agency in South Africa?  here is a complete Feasibility Study Example of a Student Placement Business Plan Template that you can use for FREE  .

Ok, so we’ve covered all the requirements for starting a student residence rental agency. We also took it a step further by analyzing and writing a sample student placement marketing plan template backed by actionable guerrilla marketing ideas for student housing rental agencies. So let’s move on to the business planning section.

Why start a student accommodation business?

The real estate business is a very large industry and new businesses start to come in from time to time. There is a wide range of high-turnover businesses that a budding entrepreneur who wants to start a real estate business can start successfully. One of these businesses is the rental of student accommodation.

This business requires minimal start-up capital and minimal manpower and can be started from a home office, especially if you’re not going to be fundraising to develop properties on your own.

If you decide to start a student placement business, you need to write your own business plan. The essence of writing a business plan before you start a business is that you have a plan for how you are going to set up, manage, and grow your business.

Below is a sample student housing corporate business plan template to help you write yours successfully with little to no stress.

Sample South Africa Student Housing Business Plan Template

  • Industry overview

The student housing industry is a real estate business, and the real estate industry is one of the many sectors that has contributed significantly to economic growth in many countries around the world. In fact, a real estate agent can become a millionaire overnight from a single real estate transaction; Not surprisingly, the industry is responsible for the many instant millionaires making money in South Africa as well as the rest of the world.

The Bureau of Labor Statistics forecasts 11.1% employment growth for realtors in 2012 and 2022, about as fast as average. During this time, 38,000 additional jobs will be opened.

South Africa attracts a large number of international students, and a recent study by Jones Lang LaSalle (JLL) found that the number of young people between the ages of 18 and 25 will increase to nearly 100 million by 2021, and that demand for new housing will exceed 500,000 seats over the next five years.

The current housing environment can accommodate less than one in five students applying for residency, and the number of students is increasing every year as more and more young people graduate from high school.

The real estate agency (brokerage firm) usually receives a payment, known as a commission, to successfully match the seller’s property with the buyer’s real estate needs so that a sale or lease / lease can be made. In most cases, the commission received is distributed among other brokers or real estate agents who have played a role in ensuring that the property is sold or rented as appropriate.

It is important to note that in Southern Africa each province has its own unique laws which clearly define the types of relationships that may exist between real estate agencies (professionals) and owners (clients). However, this is still a victory for real estate agencies and property owners, as real estate brokers and their sellers (usually referred to as real estate agents or brokers) generally help sellers sell their property and sell it for the best possible price. conditions.

The real estate industry is highly regulated in South Africa and anyone who aspires to become a real estate agent or set up a real estate agency must apply for and obtain a license before they can legally receive compensation for services provided as a real estate agency or broker. immovable. But as a lawyer, you can do real estate transactions in South Africa and earn commissions without working as a licensed real estate agent.

The practice is for a licensed real estate agent to disclose to potential buyers and sellers the nature of their relationship with the transaction and with the parties to the transaction. Most student housing rental companies have a practice of participating in other forms of rent related to real estate. Some even go so far as to build.

Providing services to a student accommodation rental company is simple and straightforward, especially if they are not participating in other free services as part of their business.

A brief description of the student accommodation business plan

Oliver Tambo Co® Real Estate Agency, LLP is a real estate agency that will operate in all provinces of South Africa, but headquartered in Cape Town, near the University of Cape Town, which is the oldest university with the most large number of registrations in South Africa.

We intend to become specialists in the ownership, development, acquisition, management, sale and rental / rental of student accommodation, office apartments and halls, generally described as clean and safe housing close to campus at an affordable cost, and In our experience, the most stable demand is for newly built and used high-tech one and three-room apartments. security, parking and good access to shops and other amenities as well as to the campus.

Our goal as a real estate agency is to become one of the top 5 real estate companies in general. South Africa, and rent and manage property on college campuses in South Africa.

Oliver Tambo Co® real estate agency, LLP, will strive to maintain a diverse portfolio of high quality student apartments, office structures and halls. We will also focus on providing a vibrant, active and dynamic work environment for all of our employees, such as preferred rentals for all of our students and tutors, and a mouthwatering bonus for every transaction one of our employees makes.

Oliver Tambo Co® Real Estate Agency LLP will become an independent investment trust (REIT). We will handle a wide range of student accommodation rental services. We will strive to become one of the largest student accommodation rental companies in South Africa.

As part of our plans to make our customers the number one priority and become one of the leading student rental companies in South Africa, we have developed plans to introduce international best practices to compete with the best. in industry. Oliver Tambo Co® real estate agency, LLP has developed overtime plans to help us become a specialist in our field.

Oliver Tambo Co® real estate agency, LLP, will always demonstrate its commitment to sustainability, both individually and as a business, through active participation in our communities and through the integration, where possible, of practices sustainable business. We will deliver on our responsibility to the highest standards by accurately and completely meeting the needs of our customers.

Oliver Tambo Co®, LLP is a real estate agency founded by Rowland Oliver Tambo, Sean Mbeki and Sarah Zuma. They are the company’s main financiers. R. Oliver Tambo is President and Chief Executive Officer of the Company. Rowland Oliver Tambo has over 10 years of real estate experience in leadership roles in sales, marketing, emerging technologies and franchise management.

  • Our products and services  >

Real estate agency Oliver Tambo Co®, LLP plans to offer a variety of real estate services in South Africa.Our intention to found our student housing company is to compete with the major players in the student housing industry in South Africa. South.

We are well prepared to take advantage of the industry and will do whatever is legally permitted in South Africa to achieve our business goals and objectives. Our commercial offers are listed below:

  • Rental of student accommodation facilities in a single block
  • Rental of student accommodation structures in two to four divisions
  • Rental of student accommodation structures with 5 to 9 units
  • rental of student accommodation facilities from 10 to 20
  • rental of student accommodation structures from 20 to 49
  • Rent for 50 or more student accommodation
  • Rental of ready-to-use student residences, mobile homes or trailers
  • Real estate advisory and consultancy services

Our vision

Our vision is to become one of the 5 largest student housing rental companies in South Africa within the first 10 years of founding R. Oliver Tambo Co® Real Estate Agency, LLP.

  • Our mission statement

Our mission is to start a student housing business – to grow the business. outside the city we are in We are on the cusp of becoming a national and international brand by opening offices in key cities in South Africa and in franchising.

  • Our corporate structure

The structure of our business is practically no different from what you can get in the real estate industry. We have decided to create a structure that will facilitate the easy growth of our business and we have created platforms that will allow us to attract the best hands in the industry.

We fully understand that the success of any business is at the heart of the business, so we decided to set up our student housing company on the right business basis. We will ensure that we only hire people who are qualified, honest, hardworking, customer-focused and willing to work to help us build a successful business that benefits all stakeholders.

In fact, the profit sharing arrangement will be available to all of our senior executives and will be based on their results for five years or more, depending on how quickly we achieve our goal.

Oliver Tambo Co® Real Estate Agency, LLP is aware of the modus operandi of leasing student accommodation, therefore adequate terms and competitive offers have been prepared for independent real estate agents. Our marketing department will be responsible for managing this aspect of our business.

Here is the structure of the company that we will build R. Real estate agency Oliver Tambo Co®, LLP on;

  • General manager
  • lawyer / company secretary
  • Administrator and HR manager
  • Real estate agents
  • Business Developer / Ventes & Marketing
  • Accounting
  • Customer Service Manager / Front Desk Agent

Roles and responsibilities

Managing Director – CEO (Chairman):

  • Improves management efficiency by recruiting, selecting, targeting, training, coaching, consulting and disciplining managers; transfer values, strategies and goals; distribution of responsibilities; planning, monitoring and evaluation of work results; develop incentives; development of the conditions for disseminating information and opinions
  • Responsible for pricing and signing trade agreements
  • Responsible for providing advice to the company
  • Creates, communicates and implements the vision, mission and general direction of the organization, that is, the leadership in the development and implementation of the overall strategy of the organization.
  • Responsible for signing checks and documents on behalf of the company
  • The organization measures success

lawyer / secretary / company legal adviser

  • responsible for drafting contracts and other legal documents for the company
  • Advise and manage all corporate legal processes (e.g. intellectual property, mergers, financial / securities offers, compliance issues, transactions, agreements, litigation and patents, etc.)
  • Develops company policy and position on legal issues
  • Find, predict and protect the company from legal risks
  • represents the company in litigation (administrative advice, litigation, etc.)
  • participates in negotiations on commercial transactions and writes meeting minutes
  • Responsible for analyzing legal documents on behalf of the company
  • Prepares annual reports for the company

Administrator and HR manager

  • Responsible for the proper execution of personnel and administrative tasks in the organization.
  • Develops job descriptions using KPIs to manage client performance
  • Meet regularly with key stakeholders to test the effectiveness of HR policies, procedures and processes
  • Support Chec Royal Stocks office supplies; place and expedite orders; evaluation of new products.
  • Ensures the operation of equipment by meeting preventive maintenance requirements; call for repair.
  • Identifies the jobs to be recruited and manages the interview process
  • Carry out the inductions of new team members
  • Responsible for training, evaluation and evaluation of employees
  • Responsible for organizing trips, meetings and appointments
  • Monitors the proper functioning of the office

Real estate agents

  • Responsible for renting and letting student accommodation and other property on our list
  • Responsible for the verification and reporting of the structural performance of the building
  • Evaluates building system components (electrical, fire, roofing and plumbing)
  • Evaluates compliance with building, electrical, plumbing and fire codes.
  • Evaluates construction plans and permits
  • Review and approve plans in accordance with building codes, local ordinances and zoning regulations
  • Maintains daily logs including photos taken during the inspection

Marketing and Sales Manager / Business Developer

  • Identifies, prioritizes and contacts new partners, as well as business opportunities, etc.
  • Identifies development opportunities; monitors development and contacts; participates in the structuring and financing of projects; ensures the realization of development projects.
  • Responsible for overseeing implementation, advocating for client needs and communicating with clients
  • Finds and qualifies building land according to the company’s land needs; maintains a land research database; initiates discussions with the owners on the possible sale of a property
  • Develops, implements and evaluates new plans to grow sales
  • Documents all contacts and customer information
  • company during strategic meetings
  • Helps increase sales and business growth


  • Responsible for the preparation of the financial statements, budgets and financial statements of the organization
  • Provides managers with financial analyzes, development budgets and accounting reports; analyzes the financial feasibility of the most complex proposed projects; conducts marketing research to predict business trends and conditions.
  • Responsible for financial forecasts and risk analysis.
  • Maintains treasury, general ledger, and financial reports for one or more objects.
  • Responsible for the development and management of financial systems and policies
  • Payroll manager
  • Ensures compliance with tax laws
  • Manages all the financial transactions of the company
  • Serves as the company’s internal auditor

Registration and customer service

  • Receives visitors / customers on behalf of the organization
  • Receives packages / documents for the company
  • Handles email and phone requests for the organization
  • Distributes mail to the organization
  • ensures that all customer contacts (email, integrated hub, SMS or phone) provide the customer with a personalized customer service experience of the highest level
  • Through interaction with customers over the phone, he uses every opportunity to generate customer interest in the company’s products and services.
  • Handles administrative tasks assigned by the mana line. Manage efficiently and in a timely manner
  • Keep an eye out for any new information on a business’s properties that are for sale to ensure that accurate and useful information is provided to customers when they request it.

SWOT analysis of the student housing business plan

If you are starting a student accommodation business in South Africa it has its share of challenges, you will have to comply with the law and also compete with many other entrepreneurs in the real estate value chain who are also interested in winning. money with housing and construction company in Cape Town – South Africa.

To compete profitably in the rental of student accommodation, we were able to hire a trusted and reliable HR consultant to help us with our SWOT analysis. Here is a summary of the results of a SWOT analysis carried out on behalf of Oliver Tambo Co®, LLP.

One of the strengths we will harness in the student housing industry is our strong relationship with student housing owners across South Africa. In addition, we have a team of experts who have cut their teeth in real estate and take care of student placement issues. Our commission structure and relationships with independent real estate agents in Cape Town and other provinces of South Africa will also be considered to our advantage.

As a newcomer to the rental of student housing arena, we might have problems competing with the big real estate agents and other student housing companies that have been in the industry for many years; this is perhaps part of our weakness.

Opportunities in real estate, especially in the form of student housing rentals The society is colossal, given the rapid growth in university enrollments in South Africa, a trend supported by very favorable demographics. We are well positioned and ready to seize any opportunity that presents itself.

Some of the threats we are likely to face as a student placement company are unfavorable government and university council policies and the global economic recession. The global economic downturn typically affects purchasing power, and the real estate industry is known to see declines in sales and profits during this time.

There is little we can do about these threats except to be optimistic that everything will continue to work for our good.


  • Market trends

Market trends in the range of business student accommodation in South Africa are such that international students are being targeted because they are willing to pay more for safe and decent student accommodation. In fact, security is a key factor when it comes to renting a student apartment in South Africa, and next to security, proximity to campus.

Another obvious trend for student rental companies in South Africa is that most of them are improvising trying to find more money to make money in real estate, and in fact they are taking action. also as developers and real estate agents. home among many other features.

One thing is that this is a must have for any student rental business; if they are hardworking, creative and proactive, they will always earn enough income to cover all of their general and operating expenses, support their business without any difficulty and make a reasonable profit on their business transactions.

  • Our target market

As a student housing company, our target market covers different classes and cultures, we are entering the student housing sector with a business concept that will allow us to work with local and international students interested in renting student apartments. at an affordable price.

  • Our competitive advantage

Having knowledgeable and reliable real estate agents within our payroll, business process, corporate financial structure, high quality asset portfolio management, superior financial debt management and, of course, our pricing model are all part of our competitive advantage.

Another possible competitive strategy to win over our competition in this particular industry is to build a strong customer base and keep our student apartments on trend. Our organization is well positioned, the key members of our team are very reliable and knowledgeable and can compete favorably with some of the best in the student housing industry.

Finally, our employees will be well taken care of and their benefits will be one of the best in our class in the industry. This will allow them to be more than ready to build a business with us and help them achieve their goals and objectives. We will also hire independent marketers to help us market our services.

Student housing business plan SALES AND MARKETING STRATEGY

We are very aware of the competition going on in the South African student accommodation rental market, so we have been able to hire some of the best business developers to handle our sales and marketing.

Our sales and marketing team will be recruited on the basis of their vast experience in the industry and will be regularly trained to achieve their goals and the overall objective of the organization. Training is not limited only to our full time employees, but also to all of our independent brokers who are scattered across the South African campus.

Our aim is to become one of the leading student accommodation rental companies in South Africa which is why we have strategized to help us take advantage of the market and become a major force in the industry.

Oliver Tambo Co® Real Estate Agency, LLP is prepared to use the following marketing and sales strategies:

  • Introduce our student accommodation rental company by sending cover letters along with your brochure to students and other interested parties across the city where our business is located.
  • Print flyers (list of rental areas) and business cards and place them strategically in offices, car parks, libraries, public places and stations, etc.
  • Call on your friends and family to promote our company
  • Post information about our business and the services we offer on message boards in places such as parking lots, schools, libraries and local cafes, etc.
  • Promote our business and the services we offer in the newspaper or local publications.
  • Use advertising networks such as agencies that will attract clients (students) who will need our student apartments
  • Promote our student space rental company in real estate magazines, newspapers, TV and radio stations.
  • Attend exhibitions, seminars and corporate real estate fairs. etc. to promote our services
  • Implement a direct marketing approach
  • Encourage the use of word of mouth advertising from loyal and satisfied customers
  • Join local chambers of commerce and industry to market our products and services.

Source of income

Oliver Tambo Co®, LLP is a real estate agency founded with the aim of maximizing return on investment in student housing. Here are the sources that we will study to generate income for R. Real Estate Agency Oliver Tambo Co®, LLP;

  • Rental of student accommodation facilities in a single block
  • Rental of student accommodation structures in two to four divisions
  • Rental of student accommodation structures with 5 to 9 units
  • Rental of student accommodation facilities from 10 to 20
  • Rental of student accommodation structures from 20 to 49 years old
  • Rent for 50 or more student accommodation
  • Rental of ready-to-use student residences, mobile homes or trailers
  • Real estate advisory and consultancy services

Sales forecasts

It is known that as long as there are students on campuses in South Africa, they will still have to use the services of student accommodation companies from time to time.

We are well positioned to meet the challenges that are synonymous with the student housing sector in South Africa, and we are quite optimistic that we will achieve our goal of making enough profit in our first month of operation and expanding the activity outside Cape Town in record time. other provinces of South Africa.

We were able to critically examine We are a student housing rental company, we analyzed our chances in the industry and were able to make the following sales forecasts. Sales forecasts are based on locally collected information and certain assumptions inherent in similar startups in Cape Town – South Africa;

  • First financial year:  200,000 rubles.
  • Second financial year:  500,000 RUB
  • Third financial year:  800,000 rubles

Note  . This forecast has been made based on what is available in the industry and assuming there will be no major economic downturn and no major competitors offering the same services as us on the site, we have a strong commercial presence. Please note that the above forecasts may be lower and at the same time higher as some factors are beyond our control.

  • Our pricing strategy

It is part of our business strategy to ensure that we operate within the budget of our potential clients to help them meet their expectations. In most countries of the world, real estate appraisal by professionals is practiced according to the territory in which the object is located, the type of object and other factors.

As we do not directly control the prices of the Real Estate System, we can only respect what is available when it comes to setting the price of our premises. But one thing is for sure, we will make sure to provide decent and safe housing when we commit to doing so.

Finally, we will ensure that our fees are below the market average for all of our clients, keeping our overhead costs low. In addition, we will also offer special discounts to our customers from time to time, especially if they refer customers to us.

  • payment methods

At R. Oliver Tambo Co® Real Estate, LLP our payment policy is inclusive, as we are well aware that different people prefer different payment options that are suitable for them, but at the same time we do not accept cash payments because of the volume. cash that will be involved in most of our transactions.

Real estate transactions usually involve a huge amount of money. Below are the payment options that R. Oliver Tambo Co® Real Estate Agency, LLP will provide to its clients;

  • Payment by bank transfer
  • Internet bank transfer payment
  • Payment by check
  • Payment by bank check

Keeping the above in mind, we have selected banking platforms that will help us achieve our projects without any difficulty, and we will also pay our independent sellers with the same platforms. Our bank account numbers will be available on our website and in promotional materials.

Any agent who intends to pay in cash will be asked to deposit money into our corporate account and then present their cash register to us.

Student placement business plan for ad placement and advertising strategy

We were able to work with our consultants to help us define advertising and advertising strategies that will help us penetrate the very heart of our target market. We intend to take the student housing industry by storm, so we have taken steps to advertise and promote our business.

Below are the platforms we intend to use to promote and advertise our student accommodation. rental company;

  • place advertisements on print and electronic media platforms
  • maximize our company website to promote our business
  • use social and online media platforms such as; Instagram, Facebook, Twitter, LinkedIn, Google+ and other platforms (online real estate forums) to promote our business and list our properties for sale and rent.
  • Install our notice boards in strategic locations in and around the university. community in Cape Town
  • Distribute our leaflets and flyers from time to time in targeted areas
  • Attend student association meetings to network and represent our company.
  • Make sure all of our employees wear our branded t-shirts and that all of our vehicles carry our company logo

Business plan for student placement, financial projections and costs

From our market research and feasibility studies we were able to set a detailed budget to meet our goal of setting up a standard student accommodation rental company in Cape Town – South Africa, and these are the key areas where we will spend seed money;

  • General costs for registering a business in South Africa. The cost of the R50 name reservation request   and R125 company registration
  • Budget for permits and licenses –  1000 rubles
  • Cost of hiring the consultant –  500 R2
  • Cost of computer software applications (accounting software, payroll software, CRM software, Microsoft Office, QuickBooks Pro, drug interaction software, physician’s office reference software)  7000  RUB
  • Insurance coverage budget (civil liability, employee compensation and property damage) for a total premium of  5,400  RUB  .
  • The cost of renting a suitable office space in Cape Town for 12 months is 1.76 RUB. per square foot for a total amount of  65,600 rubles.
  • The cost of reconstruction of offices (construction of racks and shelves) –  7,000 rubles.
  • Expenses for office equipment (computers, printers, fax machines, furniture, telephones, filing cabinets, security gadgets, electronics, etc.)  15,000 rubles.
  • Other start-up expenses, including office, telephone, and utility bills (  R2 500  ).
  • Operating expenses for the first 3 months (salaries of employees, payment of bills, etc.) –  30,000 rubles.
  • The cost of launching our official website is  600 rubles.
  • Additional costs (business cards, signs, advertisements and promotions, etc.)  5,000 rubles.

According to the market study and feasibility report, we need over one hundred and fifty thousand (  R 150,000  ) South African rand to successfully set up a small but standard student accommodation rental company in Cape Town – South Africa.

creation of start-up capital for  R. Real estate agency Oliver Tambo Co®, TOO

Oliver Tambo Co® real estate agency, TOO. it is a business that will be owned and operated by Rowland Oliver Tambo, Sean Mbeki and Sarah Zuma. They are the only financiers in the business, so they decided to limit the sources of business start-up capital to just three main sources.

These are the areas in which we intend to generate our seed capital;

  • generate part of the start-up capital from personal savings and the sale of your shares
  • generate start-up capital from friends and other extended family
  • Create more of the bank’s start-up capital

NB:  We managed to get about  50,000 rubles  (  personal savings – 30,000 rubles and a loan on favorable terms from family members – 20,000 rubles  ), and we are in the final stages of obtaining a line credit in the amount of  100,000 rubles  with our bank. All documents and documents have been duly signed and submitted, the loan has been approved and at all times our account will now be credited.

STUDENT ACCOMMODATION BUSINESS DEVELOPMENT: A strategy for sustainable development and expansion

The future of a business depends on the number of repeat customers, the potential and competence of its employees, their investment strategy and the structure of the business. If all of these factors are missing in the business, the business will close soon.

One of our primary goals in establishing R. Oliver Tambo Co® Real Estate Agency, LLP is to build a business that will survive on its own cash flow, without using financial resources from external sources, once the business will be officially launched. getting approval and winning clients means renting standard, secure student accommodation a little cheaper than the market can offer, and we’re prepared to survive on lower margins for a while.

Oliver Tambo Co® Real Estate Agency, LLP will ensure that the right foundations, structures and processes are in place to ensure a good perception of our employees. Our corporate culture aims to take our business to the next level and the training and retraining of our workforce is at the top.

We know that if this is done we can be successful in recruiting and keeping the best hands we can get in the industry; they will be more committed to helping us build our dream business.

Checklist / checklist

  • Company name availability check:  complete
  • Business registration:  complete
  • Opening of corporate bank accounts with various banks in South Africa:  completed
  • Launch of online payment platforms:  complete
  • Application and obtaining of the tax identification number:  in progress
  • Business license and permit application:  Completed
  • Purchasing business insurance:  complete
  • Office rental and renovation in Cape Town – South Africa:  Completed
  • Feasibility studies:  Completed
  • Raising capital from CEO and business partners:  completed
  • Loan requests from our bankers:  in progress
  • Planning of activities  :  Completed
  • Compilation of employee handbook:  complete
  • Drafting of contractual documents and other relevant legal documents:  in development
  • Creation of the company logo:  finished
  • Advertising printing:  finished
  • Recruitment  in progress
  • Purchase of necessary furniture, office equipment, electronics and repair tools:  In progress
  • Creation of an official website for the company:  In progress
  • Strengthen the notoriety of companies (Business PR):  in development
  • Labor protection and fire safety conditions:  developing