During the previous few years, record numbers of students attending University in the UK has seen demand for rental property soar.
As such, there has been a severe shortage of affordable student accommodation, prompting many academics to seek a property in the private rental sector.
Traditionally, universities have been responsible for providing students with quality, secure accommodation.
Student property performance
For the past five years, student accommodation has performed all other more traditional property assets, making it the strongest growing property investment market in Britain.
What’s more, this sector has proved resilient, with rental yields continuing to remain robust. Investing in student property can also offer a long-term investment opportunity, with demand likely to be high all year round. In addition, rents are usually higher for student property, when compared to a similar buy-to-let property in the same city.
Consider the facts
Should you be thinking about investing in student accommodation, make sure you consider the pros and cons. While your property well be in demand, students create more damage to fittings and there will be a large turnover of inhabitants. This could cause you problems when adhering with Right to Rent checks.
Also, don’t forget to get yourself a suitable landlord insurance policy to cover against damages and other issues that your student tenants could provide.
When you have decided that student property investment is right for you, try the following tips to make your investment pay!
Make sure you:
- Research the area for a reputable university with an esteemed reputation
- Purchase a property no more than 30 minutes walk from the university
- Meet all would-be tenants and letting agents in person
- Investigate all letting agents before choosing one
- Request references and testimonials of previous renters
- Buy a house instead of a student ‘pod’
- Consider all inclusive rents
But do not:
- Invest in student pods
- Opt for deals where capital is paid upfront and you have to wait for years to acquire the property outright
- Provide cramped or unfit properties in an attempt to save money
- Look for a short-term fix-student properties are long-term investments
- Forget your gas, fire and electrical safety obligations
- Fail to adhere to HMO regulations
- Attempt to invest in student property if you have no experience