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THREE postgraduate business students saw the 'real' in their real estate class projects for what it could mean - real opportunity.

The trio identified the demand for short-term housing rentals of under a year, and the clientele - mature, executive-type students who are able to pay the rent.

EYE FOR BUSINESS: Mr Sahai (left) and Mr Murthy see a demand for their services, which housing agents will not provide.

Between them, they have taken out leases on about 40 condominium units in the past few months and are, in turn, renting them to fellow Insead students.

They rent out units that are service apartment-style, but at two-thirds the price.

Mr Murthy and Mr Sahai set up a new business unit specialising in such short-term housing in 15-year-old real estate company Revitech about six months ago. Mr Boullier started LMB Housing Services with his wife to tap the same market.

Their clientele are mature students studying at Insead who are here for between two and 10 months.

Other MBA programmes last anywhere from a week, like the executive programme at the University of Chicago Graduate School of Business, to more than a year at local universities.

Most source their own accommodation, though the schools provide information and contacts.

Foreign students and housing agents The Straits Times spoke to said many landlords are unwilling to rent out their units for periods shorter than a year because of the hassle involved in signing on new tenants and cleaning up the units every few months.

Those who are willing want much more money than the students want to pay.

On the other hand, these students, mostly high-flying mid-career executives, want the comforts of condo-style living. Alternatives like hotels and service apartments are usually pricey.

Another problem is the mindset of landlords and housing agents.

Said Mr Sahai: 'Many owners hear the word 'student' and assume they are rowdy, with little money. We take pains to explain that these are mature, high-flying executives.'

Some owners also stipulate that they do not want Chinese or Indian nationals as tenants, but such student numbers are growing at Insead, said Mr Sahai.

'It didn't help that housing agents were none the wiser and couldn't educate the owners on these points,' he said.

The trio's solution was to cut out the middleman and do everything themselves.

Revitech and LMB signed two-year leases on each apartment for about $3,000 to $4,000 a month and rent them out for about $3,500 to $5,900, complete with utilities, maintenance and other services. Service apartments here charge about $5,000 to $10,000 a month.

Business school Essec, located at the National Library in the Bugis area, has tried to work with a few dedicated housing agents. One such agent is Mr Anthony Low, 38, who has about 30 Essec students as clients housed in about five condo units in the east.

While he admits there is a market for such short-term stays with more professionals coming in from South Korea and Hong Kong on six-month projects, it is not a niche he is looking to develop.

Said Mr Low: 'It is very troublesome. Every tenant has his own different requests and requirements.'

But this is exactly where the three Insead graduates have positioned themselves - to do the job housing agents are unwilling or unable to do.

At any given time, there are up to 450 students at Insead's Asia campus here, most of whom are foreigners.

Revitech is preparing to submit a proposal to Insead in the next few months to resolve the housing crunch for Insead students.