Student numbers are rising and along with them, demand for accommodation. But before landlords offer student accommodation, they need to study the insurance situation.
The higher education market was worth $51.5 billion to the Australian economy in 2024, making it one of the five highest-earning exports in the country, according to the Department of Education. International student enrolments hit 1.09 million in 2024 (a 15% increase from pre-pandemic levels).
This continued growth is fuelling demand for rental accommodation near universities and campuses, especially in capital cities. Purpose-fit student properties, those that are furnished, well-connected, and close to amenities, are in high demand.
While some housing is provided by the universities, most students seek out accommodation from within the private accommodation market.
According to Knight Frank, single studio apartments are the most common form of student rental accommodation (which, since 2018, have experienced average rental growth of 50% across Sydney, 38% in Melbourne, 36% in Adelaide and 28% in Brisbane).
The number of student accommodation beds in Australia has nearly doubled over the past decade, now reaching 132,700, with 53% owned or managed by the private Purpose-Built Student Accommodation (PBSA) sector.
While PBSA currently represents just 6% of the private student accommodation market, it’s growing fast. In 2025, investment volumes hit $1.8 billion across four deals, well up from $116 million in 2024. With 16 PBSA projects under construction, the highest since the pandemic, investor interest is rising, including from individual “mum and dad” investors.
Landlord insurance and student accommodation
If you are offering student accommodation (whether it’s a house, apartment, hostel, or PBSA) it’s essential to understand how this affects your insurance.
Not all student housing setups are eligible for landlord insurance. The key difference lies in whether the occupant is a tenant or a lodger. Tenants pay rent and have legal control over the property, making them eligible under residential tenancy laws. Lodgers, however, pay for a room without control over the property, and are not covered under the same legislation. Most landlord insurers, including EBM RentCover, do not cover properties like hostels or boarding houses.
Another important factor: landlord insurance is designed for one property with one lease. That means all tenants must be on the same lease agreement. If a property has multiple, separate leases, traditional landlord insurance will not apply.
Bottom line: Know your letting arrangement, as it directly impacts whether landlord insurance is suitable.
Scenario 1 – sole occupancy
If the landlord has a house, apartment or PBSA unit they are renting to a single student (one sole tenant), and they have signed a residential lease agreement, then a policy like RentCover Ultra or RentCover Platinum may be suitable.
Scenario 2 – share house with one lease agreement
Landlord policies like RentCover Ultra or RentCover Platinum may also be suitable if the landlord is renting their property to more than one student but there is only one lease. This means that there can be multiple tenants living at the property, but there can only be one lease agreement in place. Multiple tenants can be named on that one lease.
Scenario 3 – share house with multiple lease agreements
If there is more than one lease agreement (e.g. each tenant has a separate lease agreement), multiple insurance policies would likely be required as landlord insurance policies are typically taken out on a per tenancy basis. Few landlord insurers would be willing to offer cover for such a letting scenario, due to its complexity and issues surrounding liability, rent default and damage, particularly as tenants share common areas. For this reason, EBM RentCover would not have a suitable policy.
Scenario 4 – boarding/lodging house or hostel
As previously mentioned, these types of student accommodation are not usually covered by landlord insurance and require a different type of insurance cover.
Scenario 5 – no lease agreement
Standard landlord insurance policies, such as RentCover Ultra or RentCover Platinum, require a valid lease to be in place for cover to be taken out and retained (it is also a condition that a bond must be collected). If there is no lease agreement, EBM RentCover policies are not available.
Final words...
Landlords and their agents should consider how different leasing scenarios can affect the suitability of landlord insurance. Choosing the right cover helps ensure peace of mind and protection if something goes wrong.
If you are unsure whether EBM RentCover is the right fit for your student accommodation, our Expert Care team is here to help. We can chat about solutions for your property – 1800 661 662.
*While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are here, contact 1800 661 662 if you have any questions.
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