Student housing market falls flat
Lingering uncertainty about when on-campus classes will resume has placed SA’s student housing sector in a precarious position
Are students and their parents or sponsors obliged to pay rent for campus housing they aren’t occupying? Or should they be entitled to a rebate? And, if so, how will revenue losses and rising rental arrears affect student housing operators?These are just some of the questions the property sector is grappling with as universities adopt a phased-in return of students while SA’s Covid-19 infection rate continues to spike.Students, like any other residential tenants, are legally bound to pay rent in accordance with the terms of the lease agreement signed with their university or landlord. However, most tertiary campuses have been shut since early March, when students went home for the Easter recess. Anecdotal evidence suggests that less than 10% of SA’s student body has since returned, which has resulted in a growing call among students for a "no stay, no pay" policy.Though a number of student housing providers have come to the party by offering pro rata rental discounts of 30%-50%, the...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.