How Much Student Accommodation Owners Make: $150K Salary, No Extra Draws
In this researched plan, the owner has a modeled CEO/founder salary of $150,000 per year, but no supported extra distribution before tax EBITDA, cash profit before interest, taxes, depreciation, and amortization, stays negative in every modeled year, from -$516,000 in Year 1 to -$350,000 in Year 5 Full run-rate rental fees reach $219,000 per month, but variable costs run 170% in Year 1 and 105% in Year 5, before fixed overhead, payroll, reserves, and financing These are planning assumptions, not guaranteed earnings, tax advice, or required owner distributions
Owner income$150kNet marginBelow 0%Revenue for target payN/ABusiness difficultyHard
Want to test your student housing cash flow?
Owner income calculator
Estimate owner take-home and the target-pay gap from revenue, margin, labor, overhead, reserves, and target pay.
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Planning note: Research-based planning estimate only. Actual owner income is not guaranteed and is not tax advice or owner distribution advice.
How do you check owner income in the Student Accommodation pro forma?
This screenshot shows owner income, EBITDA, cash runway, breakeven, and payback tabs; it tests assumptions, not proof of earnings. Open the Student Accommodation Financial Model Template.
Owner-income model highlights
$150,000 founder salary
-$516,000 Year 1 EBITDA
Month 58 breakeven
60-month payback
001% IRR, 178 ROE
What student housing operating expenses reduce owner take-home?
For Student Accommodation, owner take-home gets hit first by operating costs, then by debt service and capital reserves. If you want the build-out math, see How Much Does It Cost To Open, Start, Launch Your Student Accommodation Business?. In Year 1, variable property costs at 120% plus marketing and leasing commissions at 50% create a 170% combined variable burden; by Year 5 that falls to 105%, while fixed corporate overhead stays $10,800 per month and payroll rises from $240,000 in Year 1 to $445,000 from Year 3 onward.
Operating drag
120% variable property costs in Year 1
50% marketing and leasing commissions
170% combined variable burden in Year 1
105% combined variable burden by Year 5
Cash after NOI
$10,800 monthly fixed corporate overhead
$240,000 payroll in Year 1
$445,000 payroll from Year 3 onward
$45,000 monthly rent at full leased mix
How many student housing beds to make $100k?
There is no single bed count in the source data, so Student Accommodation should use target-pay logic, not a fixed bed formula. Here’s the quick math: beds needed = target owner pay divided by annual cash flow per bed after operating costs, leased rent, debt service, and reserves. For a $100k goal, the model must first absorb $10,800 in monthly fixed overhead, $150,000 owner salary, payroll up to $445,000, variable costs of 105%-170%, and up to $45,000 monthly leased-property rent at full leased mix.
Bed count logic
Use target pay, not a guess.
Divide by per-bed cash flow.
Debt service cuts owner cash.
Reserves lower the bed count.
Cost stack
$10,800 monthly fixed overhead first.
$150,000 owner salary sits above that.
Payroll can reach $445,000.
Leased mix adds $45,000 monthly rent.
How much can you make owning student housing?
You can make $150,000/year as founder salary in this Student Accommodation model, but the model shows no extra pre-tax owner distribution while EBITDA stays negative in Years 1–5. For context, What Is The Current Growth Trend For Student Accommodation Business? matters because owner income depends on rent, scale, costs, debt, reserves, and lease-up timing.
Owner income range
$25,000–$48,000 monthly rent per small property
$219,000/month full six-property run-rate
$2.628M/year gross rental run-rate
$150,000/year modeled founder salary
What limits payout
Debt service reduces cash available
Reserves protect repairs and vacancies
EBITDA stays negative through Year 5
Breakeven arrives in Month 58
Want the six income drivers for student housing?
1
Bed Mix
$219K
More beds and smarter unit mix lift the full run-rate; the model still needs bed-count and occupancy inputs to size take-home.
2
Occupancy
100%
Preleasing keeps beds full, so every vacancy cuts rent before fixed costs get covered.
3
Rent Rate
$25K-$48K
Higher monthly rent per property pushes owner income up if student demand holds.
4
Cost Control
10.5%-17%
Variable costs and leasing commissions run at 10.5% to 17%, and fixed overhead is $10.8K a month.
5
Debt Load
$10.35M
The $7.5M purchase cost plus $2.85M construction budget drive financing pressure and reduce cash left for the owner.
6
Turnover
M58
Long cash drag and move-out churn matter because breakeven lands in Month 58.
Student Accommodation Core Six Income Drivers
Bed Count and Unit Mix
Bed Count Sets the Ceiling
Bed count is the hard cap on student housing revenue. Because the source data does not list beds, use monthly property rental fees as a proxy: $25,000-$48,000 per property, or $219,000 per month across six properties. That equals about $36,500 per property on average. Unit mix then decides how much of that ceiling comes from private rooms versus shared layouts.
The mix matters because private bedrooms, shared units, and suite layouts change rent per bed and absorption. If you add beds before preleasing proves demand, vacancy hits cash flow fast and lowers the owner’s draw. More beds only help when the market can fill them.
Track Beds Against Signed Leases
Model revenue capacity = beds × rent per bed, then stress it with occupancy and concessions. Preleasing, meaning leases signed before move-in, should be checked before you open new capacity. If the lease-up pace lags, phase delivery or hold back units so fixed costs do not outrun rent.
Track total beds by asset.
Split private and shared layouts.
Test rent per bed by unit type.
Compare preleases to planned beds.
The goal is simple: keep added capacity tied to signed demand so monthly rental fees turn into cash, not empty rooms.
1
Rent Per Bed and Pricing Power
Rent Per Bed
Rent per bed is the price driver behind student housing revenue quality. The model uses monthly rental fees of $25,000 to $48,000 by asset, but the owner’s income depends on the editable rent-per-bed assumption, not just the top-line rent figure. If campus access, private bedrooms, utilities, and amenities support the price, net operating income stays stronger.
Here’s the quick math: at a portfolio run-rate of $219,000 per month across six properties, small pricing changes can move owner cash fast. But premium rent only helps if occupancy holds. Concessions cut effective rent, so a higher sticker price can still leave less take-home income.
Track Effective Rent
Measure effective rent per bed as asking rent minus concessions, then compare it with nearby student housing that has the same campus access and room type. Track occupancy, prelease pace, and concession rate together. If one of those slips, collected cash drops even when headline rent looks strong.
Test pricing by bed type: private bedrooms, shared units, and suite layouts should not all carry the same rate. Use local competition, utilities included, and amenity quality to set the premium. If lease-up slows, cut discounts first. That protects monthly cash flow and the owner’s draw before overhead and debt service.
2
Occupancy, Preleasing, and Lease-Up
Occupancy and Preleasing
Occupancy turns projected rent into cash. In student housing, the model needs editable occupancy and preleasing fields because source data does not give them. If the portfolio is built to a $219,000 monthly run-rate, vacancy and concessions pull collected income below that fast, and that hits owner draw before debt service.
Academic-year leasing makes misses sting. A weak prelease can leave beds empty for more than one month, so a 1% change in occupancy matters more than it does in monthly retail leasing. Risk is highest in the opening year, during construction delays, and in weak enrollment markets, when lease-up slows and cash flow slips.
Track Lease-Up Weekly
Measure occupied beds, preleased beds, and concessions by property, then compare them with the rent run-rate. Here’s the quick math: collected income should equal projected rent times occupancy, then reduced for vacancy and move-in discounts.
Track prelease by month.
Watch lease-start timing.
Flag beds without deposits.
Test discount cost weekly.
Stress test opening-year lease-up.
What this hides: if preleasing slips late in the cycle, you may not refill beds until the next academic term, so shortfalls last longer than a normal monthly vacancy. That makes early leasing a cash control, not just a sales metric.
3
Operating Expense Control
Operating Expense Control
Operating expense control is the gap between rent collected and the costs of running the property before debt service. In real estate, net operating income (NOI) is what is left after those costs. For student housing, that includes utilities, repairs, insurance, management, marketing, security, staffing, and amenity upkeep. With variable cost burden at 170% in Year 1, then 140%, 125%, 115%, and 105% by Year 5, NOI stays under pressure even before the $10,800 monthly fixed overhead.
The owner’s take-home cash drops fast when payroll reaches $445,000 from Year 3 onward. Keep loan payments and reserves out of this line. If operating costs run above revenue, the property may still look busy, but distributable profit can shrink or go negative.
Track the cost stack weekly
Measure each cost bucket against collected rent, not just booked rent. Track utilities per occupied bed, payroll per resident, and amenity upkeep per unit, then compare them to the yearly burden targets. If Year 1 is already at 170%, the fix is fewer staff hours, tighter vendor bids, and faster issue closure before the cost base hardens.
Separate fixed and variable costs.
Track payroll after Year 3.
Test vendor rates every quarter.
Protect NOI before owner draws.
4
Financing, Development Cost, and Debt Service
Debt Service and Capital Stack
Debt service is the monthly cash outflow from mortgage and development loans, and it can wipe out owner pay even when rent looks strong. In this model, owned-property purchase costs total $75 million and construction budgets total $285 million, while leased-property rent reaches only $45,000 per month at full leased mix. One missed assumption on rate, amortization, or timing can flip cash flow fast.
Here’s the quick math: if financing costs rise, or construction runs over budget, the same rent supports less owner take-home. The key inputs are loan-to-cost, interest rate, amortization, refinancing timing, and any overrun. Keep debt service editable, because this is the line that decides whether cash reaches the owner or stays trapped in the project.
Track Debt Service Before You Track Profit
Build a monthly model with gross rent, debt service, and cash after mortgage. Test the base case at $45,000 per month leased rent, then stress it for higher rates, longer amortization, and delayed refinance. If debt service rises faster than rent, owner draw drops even when occupancy looks fine.
Also track construction draw timing and cost creep against the $285 million budget. A small overrun can matter more than a full month of rent. Keep a reserve for rate resets and refinance delay, and update the forecast whenever lender assumptions change. That keeps the owner focused on true distributable cash, not paper profit.
5
Reserves, Turnover, and Capital Needs
Reserve for Turnover, Not Leftover Cash
In student housing, turnover costs hit before owner draws. They include furniture wear, summer make-ready work, amenity repairs, locks, and security systems, plus the extra churn that comes with student move-outs. With startup capex of $140,000 and construction budgets of $285 million, reserves need to sit in the model from day one, not after profit shows up.
Here’s the quick math: if reserves are skipped, distributable cash looks better than it is. That can push owner pay too high and leave the business short during lease-up and summer turns. The cash plan already shows minimum cash of -$5,787 million, so reserve funding matters before any draw.
Model the Turnover Reserve Up Front
Track beds moved out, make-ready cost per unit, and summer repair spend. Also watch how often locks, furniture, and amenity items need replacement. Those inputs tell you how much cash must stay inside the property instead of flowing to the owner. One clean rule: if the reserve line is missing, owner income is overstated.
Build a monthly reserve line tied to lease cycle timing, not a flat leftover amount. Test it against opening-year turnover and summer vacancy, when costs cluster. If reserve funding rises and cash still stays negative, owner draws should wait until operating cash stabilizes and the lease-up curve proves itself.
Track move-outs by bed.
Price summer make-ready work.
Separate reserves from profit.
Hold cash for wear and repairs.
6
Compare lean, base, and high student housing income scenarios
Owner income scenarios
Owner income here moves with lease-up speed, vacancy, and whether the portfolio reaches Month 58 breakeven. Early cash burn stays heavy, so distributions only work once occupancy and rent stabilize.
Low, base, and high owner-income cases for a student housing portfolio.
Scenario
Low CaseLease-up risk
Base CaseCash need
High CaseDistribution ready
Launch model
This is the downside case where lease-up lags and owner income stays under pressure.
This is the modeled base case with salary support but no extra owner payout.
This is the upside case where stronger lease-up can support owner payouts after reserves and debt service.
Typical setup
Occupancy runs weaker, vacancies and concessions stay high, variable costs run at 170%, and construction delays push cash recovery out.
The plan carries a $150,000 founder salary, negative EBITDA in Years 1-5, Month 58 breakeven, and $0 supported extra distribution.
The model tests the full $219,000 monthly rental fee run-rate, 105% variable costs, controlled payroll, debt service, and reserve discipline.
Cost drivers
Weak occupancy
higher vacancy and concessions
170% variable costs
construction delays
no extra owner distribution
Month 58 breakeven
$150,000 founder salary
negative EBITDA Years 1-5
$0 extra distribution
modeled operating costs
Full $219,000 monthly rental run-rate
105% variable costs
controlled payroll
debt service
reserve discipline
Owner income rangeBefore owner reserves
No extra distributionNo payout
Salary onlySalary only
Salary plus upsideUpside test
Best fit
Use this to stress-test lease-up risk and cash burn.
Use this as the core planning case for budgets and lender talks.
Use this to test distribution readiness and upside capacity.
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Planning note: Scenario ranges are researched planning assumptions, not guaranteed earnings, salary promises, tax advice, or distributions.
