How to set up a student rental property and why investors should consider it

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Picture this: a renovated four-bedroom home in a quiet suburb, walking distance to a major university, each room leased to students. It’s low-maintenance, in high demand, and delivering strong returns. 

And investors are taking notice. 

According to the Property Council of Australia, student accommodation investment volumes reached $330 million in 2023, with momentum expected to continue through 2025 as more institutions reopen and international student numbers climb again. 

Source: propertycouncil.com.au 

At the same time, research from Smart Property Investment highlights that student housing has become one of the most sought-after rental strategies in the current climate, with investors increasingly favouring room-by-room leases due to their higher gross yields and low vacancy risk. 

Source: smartpropertyinvestment.com.au 

For everyday investors, including accidental landlords, upsizers hanging onto their first home, or homeowners near campuses, this presents a big opportunity. 

The demand is real. The setup is scalable. And with the right help, student housing can be more than a niche move, it can be your most strategic one yet. 

Why student rentals are a smart play in 2025 

Student housing is increasingly viewed as a practical, high-yield investment strategy in today’s tight rental market.  

Here’s why: 

• Consistent demand: Enrolment numbers remain high across universities, TAFEs and private colleges. With many international students choosing Australia as their top study destination, the pipeline of potential tenants continues to grow. 

• Limited affordable options: Purpose-built student accommodation often comes at a premium. Many students prefer more affordable, homely, or share-house environments in the suburbs. 

• Room-by-room rental flexibility: Leasing the bedroom allows for multiple income streams from a single property, which can significantly boost gross rental yield. 

• Lower entry costs: Compared to inner-city apartments, houses in suburban or regional uni precincts often come at lower purchase prices, ideal for first-time or equity-backed investors. 

• Rental stability: Semester-based leasing means many students stay for 6-12 months at a time, offering reliable, steady income. 

“It’s not just about the yield. Student properties tend to stay tenanted longer than people think, especially when you cater to what students really want.” — Aussie Broker 

For investors, this presents a rare combination: high demand, reliable turnover, and the ability to structure rent in a way that supports strong returns. 

What students are looking for in 2025 

Students in 2025 are more mobile, digitally connected and accommodation-savvy than ever. They know what they want, and they’ll scroll past listings that don’t meet basic expectations. 

Here’s what’s most important: 

• High-speed, reliable internet: With hybrid learning and streaming needs, this is non-negotiable. 

• Furnishings included: Beds, desks, storage and essential appliances make moving easy. 

• Bills bundled into rent: An all-in-one rate covering electricity, gas, water and Wi-Fi simplifies budgeting. 

• Lease flexibility: Shorter terms or semester-based agreements are especially attractive to international students. 

• Convenience and transport: Properties near campus, train lines, or bus stops have a natural edge. 

• Study-friendly environment: Low-noise, secure, and clean, student renters want spaces that support learning, not partying. 

By understanding what tenants value, investors can make informed decisions on what to include, upgrade or prioritise to keep their student rentals competitive. 

You might also be interested in: Self-managing your rental property 

How to set up a student-ready investment property 

You don’t have to completely gut and rebuild a home to make it student-ready. But some thoughtful changes can elevate appeal, maximise rent, and ensure compliance. 

Student rental-ready essentials 

• Individual room locks: These offer privacy and meet many local leasing standards. 

• Desks and shelving in every room: A proper study setup is essential. 

• Common area inclusions: Fridge, microwave, kettle, lounge and TV as shared spaces still matter. 

• Simple, hard-wearing surfaces: Think vinyl or hybrid flooring, neutral paint, washable finishes. 

• Good lighting and airflow: Natural light and ceiling fans go a long way. 

• Wi-Fi boost: An NBN upgrade or mesh Wi-Fi ensures strong coverage throughout the home. 

• Basic security features: Sensor lights, window locks, and solid doors provide reassurance. 

“You don’t need to spend $100K renovating. Often, it’s about smart configuration: locks on doors, desks in rooms, good Wi-Fi. A few small upgrades can lift your rental return significantly.” — Aussie Broker 

Legal considerations: 

Before leasing the room, check with your local council. You may need approval for: 

• More than 4 unrelated people sharing a home 

• Fire safety upgrades (e.g. smoke alarms in every room) 

• Additional car spaces or waste management plans 

Strata-managed townhouses or apartments may also have by-laws restricting room-by-room leasing. An Aussie Broker can help you navigate these early before you commit to a purchase or renovation. 

Understanding insurance and risk management 

Renting to students doesn’t necessarily increase your insurance risk, but it does mean having the right cover matters more. 

• Landlord insurance with coverage for room-by-room leasing is essential. 

• Look for policies that include: 

• Loss of rent 

• Tenant damage 

• Public liability 

• Notify your insurer if you’re leasing to multiple unrelated tenants or operating under a boarding arrangement. 

Also consider: 

• Installing fire extinguishers or fire blankets in the kitchen 

• Having a maintenance schedule for shared spaces 

• Keeping a digital inventory of furnishings and appliances 

An Aussie Broker can refer you to trusted providers who offer policies designed for investment properties and room leasing setups. 

Shifting your mindset: From landlord to strategic investor 

Renting to students successfully means thinking beyond passive ownership. You’re creating a mini-ecosystem of tenants, and that comes with opportunities. 

A smart student rental strategy includes: 

• Understanding tenant turnover cycles (based on semesters, holidays, exchange programs) 

• Pricing per room, not per house and benchmarking this locally 

• Regular maintenance plans to protect asset value 

• Building tenant loyalty by being responsive, fair, and professional 

It’s not just about yield, it’s about reputation. A well-managed student property attracts referrals and longer-term tenants. 

You might also be interested in: What is a good rental yield and how do you calculate it? 

How Aussie can help you get started 

Setting up a student rental doesn’t need to be overwhelming, especially when you’ve got the right support team. Aussie Brokers can help with: 

Smart finance structuring: 

• Unlocking home equity for renovations or new investments 

• Structuring interest-only loans to support cash flow 

• Comparing over 25 lenders* to find the right investor loan for your goals 

Tools & calculators: 

• Use our Borrowing Power Calculator to explore what you can afford 

• Estimate repayments on your student rental with our Loan Repayment Calculator 

Expert referrals: 

• Get matched with a Buyer’s Agent specialising in high-yield student suburbs 

• Tap into property managers and legal advisors experienced in shared housing 

Where demand is growing for student rentals 

While every property is different, demand tends to concentrate in: 

Student tenants are looking for accessible, safe, and affordable housing options near their campus or key transportation routes.  

Whether you already own in one of these areas or are looking to buy, this is where your Aussie Broker can help you assess local demand, equity potential, and financing options. 

Thinking long-term: What student rentals unlock for your future 

Investing in student housing isn’t just a yield play, it’s a future-facing strategy. 

Long-term benefits include: 

• Resale value: Properties that perform well as rentals are attractive to other investors. 

• Asset flexibility: Student properties can later be reconfigured into family homes or rented as full residences. 

• Tax benefits: Depending on your setup, you may be eligible for depreciation claims and negative gearing (always seek advice). 

• Wealth growth: When paired with capital growth and equity access, student housing can fuel future purchases. 

You might also be interested in: Buying your first home as an investment 

Ready to unlock the student rental opportunity? 

Student housing in 2025 isn’t just a fallback done right, it’s a smart, scalable, and sustainable investment strategy. 

Thinking about renting to students? Or curious how your current property could work harder for you? 

Book a call with an Aussie Broker today, and we’ll help you crunch the numbers, build a plan, and start unlocking potential. 

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