The students of the United States International University (USIU)-Africa make the best tenants, we can now reveal. Data from the Acorn, Kenya’s largest owner and operator of hostels or purpose-built student accommodation (PBSA), shows that students from the Ruaraka-based university yield the most rent.
The Acorn Student Accommodation Income Real Estate Trust (ASA I-REIT) 2024 annual report shows that hostels that primarily host USIU students had the highest Average Financial Occupancy rates.
The Average Financial Occupancy is a key performance metric in real estate, especially in income-generating properties like apartments, offices, or shopping centers. It measures how much rental income a property earns compared to the maximum possible income it could earn if it were fully rented out.
For example, if you have a flat that you rent out for KES 10,000 per month, it means that if it when fully rented out for a year, the maximum possible income it can earn in a year is KES 120,000. If this happens, your Average Financial Occupancy rate would be 100%.
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The Qwetu Aberdare Heights II, located along USIU Road and has a capacity of 627 beds, achieved an Average Financial Occupancy rate of 97% in 2024. USIU students make up 97% of all tenants.
The high rate is possible in part through the partnership with the Mastercard Foundation, which has taken up more than 50% of the occupancy. This partnership has provided stability of occupancy in the property as the students reside with us for the majority of the year.
In the case of Qwetu Aberdare Heights II, this high occupancy rate of 97% also reflects efficient rent collection because it means all the rent the property could have generated was nearly collected.
Qwetu Wilson View, which is located along Keri Road in the Madaraka suburb of Nairobi County, was second with an Average Financial Occupancy rate of 96%. Qwetu Wilson View houses students from Strathmore University, who account for 80% of tenants. The property being 2.5 kilometres from the institution makes it convenient and thereby preferred by Strathmore University students.
Other Acorn PBSAs recorded the following occupancy rates. Qwetu Hurlingham, which mostly caters to Daystar University students, had an Average Financial Occupancy of 95%. Qwetu Aberdare Heights I (USIU-Africa) and Qwetu Parklands (University of Nairobi) also performed well with financial occupancy rates of 93% and 87% respectively.
Qwetu Ruaraka, located along Thika Road and mostly hosts KCA University students, had a 77% occupancy rate, while Qwetu Jogoo Road (Boma College) had a 74% rate.
These high Average Financial Occupancy levels show that Qwetu properties are managed well. It is also important to note that a 100% Average Financial Occupancy is a challenge because you have to take into account student holidays, where properties remain empty and therefore rent goes uncollected.
For investors, these high occupancy rates mean that they are assured of uninterrupted cash flows. They are also able to get rents without the hassle of chasing tenants.
With this in mind, it is perhaps time you also become a landlord for students, and this can be done through the Vuka platform.
Vuka is Kenya’s first regulated investment platform that gives retail investors the opportunity to invest in the ASA I-REIT, effectively allowing them to own a stake in Qwetu and Qejani student residences, in essence, becoming landlords.
For more details: https://vuka.co.ke/
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