Student Housing Forum

2013

International Student Accommodation

Developments, Obligations and

Opportunities

David Bycroft

International student accommodation has been

ranked by many international students as their:

• number one priority (ahead of their education)

when they choose to study in Australia

International student accommodation seems to have had

more:

• reviews, inquiries, investigations, reports and reruns

• than Gilligans Island and Hogan Heroes combined

Things are very slowly improving as education providers

and the industry come to realise that:

• properly managed standards based accommodation is the key to marketing Australia as a

safe and welcoming international student destination

All of the reviews and inquiries that have occurred

have all ended up with the same conclusion: • We have to improve how we help International students with

the following:

1. Pre-departure information on appropriate accommodation

2. Education Provider/Industry validated accommodation options

3. Airport reception and welcome

4. Welcoming ‘hosted’ accommodation

5. Orientation and grounding of the student prior to them

needing to make a long term accommodation decision

To date Australian Education Providers are one of

the best in the world at advising International

Students about their accommodation options

They are the best because the other countries

in the world fail more than Australia fails

Complacency regarding International Student

accommodation is one of the greatest threats to

Australia’s international education growth

Tools and options exist however more

commitment and accountability is required from

both the Education Provider and the industry

A new scam emerging

Offshore fraudsters renting out houses that aren’t even

their own

Malaysian based scammer offering property for rent on

trading site Gumtree

Asked to complete application form which had obviously

been filled out before and asked to wire $1750

Actual home owner was not aware that her home was

advertised on Gumtree

The complainant said that Gumtree did not have a

contact telephone number and she had also complained

via email but received no reply

www.gumtree.com.au www.domain.com.au

www.realestate.com.au

www.flatmates.com.au

www.realestateview.com.au

Private rental accommodation

If students are looking for private rental accommodation in Sydney, the

following websites provide useful information:

Or try

www.weripyouoff.dontcome.au

The truth is: • When a new international student is properly welcomed at the

airport through a pre-booked service

• And the airport pickup service confirms with the hosted accommodation provider that the student is on their way

• And the host welcomes the student into a warm, friendly and supported home environment

• And the host knows that their job is to settle and to help culturalise the student as well as to learn to understand the students best options for the future accommodation

• Then (surprise) the student makes a good decision on their future accommodation choice and is happy

• And the word of mouth machine promoting Australian as an international education destination is turned on to fast forward

The duty of care issue regarding international student accommodation appears clear to everyone ◦ but often not the education provider

The reviews, reports and compliance requirements on International Student Accommodation are consistent and are clear ◦ but unfortunately not clearly understood

The risk for education providers routinely following activities of the past without objective review and advice

is large ◦ But WHY IS IT OFTEN IGNORED?

Fortunately a group of quality service providers

lead by a globally recognised brand have got

together to help those who will listen meet ‘Global

Best Practice’ for International Education

Partnered Allianz Global Education (PAGE) is

about getting the basics right and back to the

forefront

www.alianzpage.com.au

Allianz Global Assistance has also recently

launched their Student Welcome Services online

orientation initiative which is free to Australian

Education providers

Free Demo opportunity is available at

www.studentwelcomeservices.com.au

Homestay has come under the most scrutiny over the

past 5 years to the point where there is no doubt about

what homestay minimum standards should be

Unfortunately much of the industry is still in denial over

their homestay obligations to other peoples children

Introducing Dr Stephen Howlett from the University of

Sydney who has championed the development of

appropriate homestay standards and insurance in a

University setting

Dr Stephen Howlett The University of Sydney

HOMESTAY QUALITY STANDARDS, DUTIES OF CARE, SECURITY AND GOVERNANCE THE SYDNEY EXPERIENCE Research Process Resistance Results

OUR RESEARCH Aim

An introductory comparative analysis of homestay and education providers’ qualitative opinion on the issue of homestay insurance risks, expectations and/or requirements.

Hypothesis

A better understanding of homestay insurance risks and measures to manage that risk could improve our interpretative frame for assessing and managing insurance risk in homestay accommodation and point the way to uniform standards of practice in homestay.

Research Question

To what extent do you expect and/or require the management of insurance risk in homestay accommodation for international students in New South Wales?

THE SURVEY ▪ 271 NSW education providers. Around 90% of the CRICOS

register of providers in NSW (DEEWR 2013). 22 ‘bounceback’; 1 no longer enrolling international students

▪ 17 homestay providers actively promoting homestay services in NSW on the Internet. 1 ‘bounceback’

▪ 3 industry associations

▪ Only 14 responses (5%). Holbrook et al (2007) ‘may not necessarily deliver an inaccurate result’

▪ 6 High Schools

▪ 3 Private ELICOS providers

▪ 3 Homestay providers

▪ 2 University English language centres

9 STANDARDS DEFINE INDUSTRY EXPECTATIONS Education providers are responsible, so they should drive industry’s expectation of standards:

1. Online portal for monitoring placements by providers, agents, Homestay suppliers hosts and

students - ‘real time’ data and reports.

2. Guardianship for Younger Overseas Students (independent of education and accommodation

provider).

3. Insurance cover for Homestay Supplier, hosts and students, including:

1. Workers compensation, Professional indemnity, Public liability etc. as a service supplier to

the University;

2. Host liability insurance for personal injury, property damage, and advertising liability; and

3. Students householders insurance covering students personal effects, accidental damage

within the host’s home.

4. Training for host families and supporting data to demonstrate the training has taken place.

5. Agreement signed by all host families outlining appropriate policies and the host obligations.

6. Documented and comprehensive student orientation.

7. A student policy - expectations and responsibilities of student, host family and Homestay supplier.

8. 24/7 Emergency and Critical incident phone support strategy.

9. Arrangements for management and accountability of all payments made on behalf of the

student to the Homestay host.

• Similar standards now in place in multiple Australian universities and other education providers

• Now in the NSW International Education and Research Industry Action Plan (International

Education and Research Industry Taskforce 2012, p.10)

FULL PRESENTATION AVAILABLE

▪ A full presentation of our work at The University of Sydney is available if required

▪ QUESTIONS?

21

http://www.homestaynetwork.org/homestay-

standards

Homestay Standards are now entrenched and it

would be unwise for Education Providers to ignore

their obligation to these standards and their duty of

care risk exposure

Risk Mitigation and Rental

Accommodation for International

Students

Damian Haber

Risk Mitigation and Rental Accommodation

for International Students

4th Annual Student Housing Forum 2013

2

1. The International Student Accommodation Risk Dilemma

2. ‘THE PAD’ Approach

3. Introducing STARS - a new online Accommodation Rating

System

Agenda

Disclaimer and Confidentiality

The information contained in this Proposal is commercial in confidence and cannot be

reproduced or disclosed to a third party in any way without the prior consent being first

obtained in writing from THE PAD Management Pty Ltd or its representatives.

The information is intended as a guide only and does not constitute advice nor should it be

relied upon as constituting advice by THE PAD Group (THE PAD Management Pty Ltd) or

its representatives.

It is highly recommended that you obtain your own independent legal and financial advice in

relation to the matters raised in this Document as well as other considerations that may

impact on your decision making.

1. The International Student Accommodation

Risk Dilemma

• Demand for student beds is outstripping supply across Australia by 10-15 beds

demand for every 1 bed supply

• The private rental market accommodates approx. 69% of the student sector, less

than 10% are housed on campus and in purpose built student accommodation

• 63% of the student market chose branding as their key determinant in working out

where to stay, location is next with 23%

• 70% of the student market have an upper pricing point of $200-$225 per week for

accommodation

• More than 80% of complaint emanates from private rental accommodation that is

off-campus and typically in suburban areas

5

Market Context

Concerns facing industry

1. Affordable Accommodation – significant shortage of suitable supply

• Lack of approved standards and value for money

• Regulatory uncertainty

2. Consumer Protection – safety and orientation

• Is it safe?

• Who will I be living with?

• Where is it and how do I get to Uni?

• If I can’t get guaranteed accommodation - should I go to Australia or

somewhere else?

3. Education industry – sustainability & legal

• Welfare & Accommodation (Duty of Care) - National Code 2007 (ESOS Act

requirements)

• Improving the Student Experience - enhances student retention

6

2. ‘THE PAD’ - Approach

1. Client engagement

1. Pre-management commencement

audit compliance checklist

• Building Amenity

• Compliance

• Insurance

2. Internal administration

1. Documentation Management System

1. Policies and Procedures Manual

& templates

2. Risk Compliance Register

3. Chronologically recorded

activities

‘THE PAD’ - Approach

8

3. Customer interface

1. Full disclosure

2. Services approach

• High Performance Culture

3. Community

• Participation

• Support

• Residential life

3. Introducing STARS - a new online

Student Accommodation Rating System

A national approach to student accommodation is

required that is quality assured

– Consistency

– Standardisation

– Transparency

‘THE PAD’ - Approach

10

Chaney Report

International Education Advisory Council (Final Report) – Feb 2013

Universities Australia

Extend student housing services

The measures to increase the stock of affordable student housing outlined in

section 1 would also support international students. In addition, universities will

expand their student housing services for international students by publishing

information on localities and providers that are suitable for student rental

accommodation, taking account of quality, safety, location and public transport

availability; by maintaining registers of landlords, agents and premises suitable

for international students (Our emphasis added); and by offering mediation

between student tenants and landlords when misunderstandings arise.

Universities Australia – Policy Agenda 2013-2016: Feb 2013

12

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www.stars-australia.com.au - LAUNCHES September 2013

Contact Details

Damian Haber

Chief Executive Officer

BRISBANE – SYDNEY – MELBOURNE

T 1300 843 723 | F +61 7 3009 9907 E damian@thepad.com.au | W www.thepad.com.au

Council of International Students ‘Good

Practice’ Program – Accommodation

David Bycroft

Council Of International Students Australia (CISA)

Good Practice Program

About CISA

The Council of International Students Australia (CISA) is the peak student representative body for all international students studying in Australia. The main purpose of CISA is to: • Advocate for the interests and needs of international

students • Advocate for high quality education for international

students • Facilitate network building (and business development)

among stakeholders with an interest in supporting international students

Good Practice Program

• Designed to guide Education Providers on ‘best practice’ within the sector, with a focus on enhancing a ‘positive student experience’ and attracting more and higher quality students to Australia

• http://cisa.edu.au/cisa-good-practice-program

‘Good Practice’ Summary Checklist

• Recruitment

– Contracted credible Agents with transparent

arrangements

– Agents being discouraged from taking

payments/commissions for accommodation, student

welfare and OSHC

– Prospective students being provided with trends regarding

opportunities for employment related to education course

‘Good Practice’ Summary Checklist

• Pre-arrival and post-arrival Information

– Evidence of an accountable online comprehensive pre-

departure ‘living and studying in Australia’ orientation

program accessible to all international students from pre-

arrival to end of visa

– Multiple language translations available in pre-arrival

orientation program

– After hours support line 24/7 for international students

post-arrival

‘Good Practice’ Summary Checklist

• Upon Arrival

– Ensure students are appropriately welcomed

– Encourage airport transfers

• Accommodation

– Ensure recommendations are qualified and meet industry

standards (e.g. homestay)

– Ensure referrals for rental accommodation have been vetted

– Institutions support for students being disadvantaged in

accommodation

Education Providers

• Institutions adopting the key elements of the CISA Good Practice Program will receive a marketing advantage through being able to use the CISA endorsement globally

• CISA would like to work with education providers to help build their business by continual work on their good, better, best practice initiatives

Council Of International Students Australia (CISA)

Good Practice Program

http://www.aph.gov.au/Parliamentary_Business/Committe

es/Senate_Committees?url=eet_ctte/completed_inquiries

/2008-10/international_students/report/c03.htm#anc9

(see sections 3.65 through to 3.71)

also commended these same 8 standards and

recommended them for legislation.

http://www.parliament.nsw.gov.au/Prod/parlment/committe

e.nsf/0/fc01867c1767684fca2579520018e34d/$FILE/Gove

rnment%20response%20-

%20international%20student%20accommodation%20in%2

0NSW.pdf

(recommendation 4 and pages 3 and 4 relating to

Homestay).

Network Provider Professional Indemnity Insurance of not

less than $5,000,000 any one claim and in the aggregate

Network Provider Management Liability Insurance of not less

than $1,000,000 any one claim and in the aggregate

Network Provider Broadform (Public and Products) Liability

Insurance of not less than $20,000,000 any one occurrence

and any one period of insurance

Network Provider and Host Family Broadform (Public and

Products) Liability Insurance of not less than $20,000,000 any

once occurrence and any one period of insurance

Student Insurance of not less than $10,000 for General

Contents including $20,000,000 Personal Liability Insurance

NSW Government Taskforce

http://www.business.nsw.gov.au/doing-business-in-

nsw/industry-action-plans/international-education-and-

research

ISA Guardian & Welfare Service

www.studentguardians.com

CISA Good Practice Program

http://cisa.edu.au/cisa-good-practice-program

AHN Insurance

http://www.homestaynetwork.org/ahn-insurance

Australian Homestay Standards

http://www.homestaynetwork.org/homestay-standards

Australian Welfare Standards (Recommended)

http://www.homestaynetwork.org/welfare-standards

Student Housing Forum

2013