Student accommodation belonging to corporations is largely focussed on the rental allowance limit, to make it as attractive and cheap as possible. Even so, more than half of the student housing market in Rotterdam is in the hands of private individuals. What does student housing actually generate for a good old slum landlord?
For example: we buy a house in Kralingen. For the sake of simplicity let’s take this house in the Paulus Potterstraat. The location is perfect: right in the centre of Kralingen, close to the university, and the Oude Haven is a short bike ride away. Letting out these rooms will be no problem.
845 euro profit per month
We opt to rent out three-quarters of the house (86 square metres), four bedrooms. The rest of the house is communal space, kitchen, shower and toilet. Then we have four lettable rooms measuring more than 20 square metres left. The average price per square metre of rooms in Rotterdam that were offered during the summer on Kamernet.nl is 21.27 euros. That means that we can let out our rooms in Kralingen for an average of 457 euros each. That will generate 1,829 euros for us each month.
The house costs 289,000 euros. If we take out a standard annuity-based mortgage with 4 per cent interest, maturing after 30 years, (with twice the standard income), we have to pay 984 euros in monthly costs. We therefore make a profit of 845 euros each month on the house in the Paulus Potterstraat. That is (excluding taxes) 10,140 euros on an annual basis.
During the summer, Yournalism, the crowdfunding platform for research journalism and media from eleven universities and universities of applied sciences throughout the Netherlands, including EM, investigated the student room market. Part of that investigation involved an extensive analysis of the rooms on offer on Kamernet.nl, on which the average rental price per square metre is based in this article. We have made the calculation of the monthly costs with this.