Many students already enjoying freshers week-taking advantage of cut-price booze and not returning their parents’ calls!
Approximately 533,000 students have made the move into further education this month, with numbers rising year-on-year. As such, landlords and potential investors are finding purpose built student accommodation a better option that typical buy-to-let landlord.
During 2015, investment volumes doubled in the student housing sector, with volumes moving above the £5bn mark. Record low interest rates are enticing yet more investors to takeout landlord insurance for properties in the sector.
Stuart Law, CEO at Assetz Property, notes: ‘we recognise investment in student accommodation is not for everybody but its yields surpass most traditional buy-to-let opportunities and let’s face it, income is very much what most investors are seeking today.’
‘The new student is a far cry from the stereotypical untidy student, whose ambition to make the most of their party lifestyle universities provide far outweighs their ability to look after their accommodation. They are generally hardworking, discerning and more importantly, respectful and want loyalty, high quality appliance.’
‘In return, they will look after your property as if it was their own.’
So just how can landlords attract the so-called ‘new’ student?
- Get the best broadband-Wi-Fi and super-fast broadband are becoming increasingly essential to students. Students want to be able to utilise these amenities from the comfort of their bedrooms. Properties with this in place will certainly make them more attractive.
- Ensure an en-suite-Students paying substantial monthly rent are no longer happy with shared bathrooms. The majority of landlords are willing to pay more for their own, modern bathroom.
- Supply appliances-Despite some students preferring to bring their own, landlords should provide basic appliances such as a toaster and a microwave. In addition, they should make sure that washing machines, dryers and dishwashers are in working order.
- Maintain mattresses-For most people, sleeping on the same mattress as previous tenants is off-putting. Students are no different, so try to provide a new mattress at the start of all agreements.
- Be a TV star-A luxury yes, but why not treat your students to a flat-screen, HD ready television? Prices of these items are dropping, so they needn’t break the bank. Again, students will be willing to pay more for amenities such as this.
- Plan the space-For students, space to chat and study together will be very important. As such, landlords should bear this in mind when creating a living space in their rental property.
- Location, location, location-Students will be attracted to properties located within easy transport access of their campus and the city centre. Ease of access will be a vital selling point.
- Consider the facilities-Think about purchasing a student investment property close to sports centres, bars and restaurants. As we all know, students will have a lot of down time, so will be looking for things to get up to!
Mr Law concluded by saying: ‘If landlords look after their tenants, the tenants will look after the property, and be happy to pay a considerably higher rent for the privilege. Investors are already benefitting from extremely high net rental yields of up to 7.5 per cent in areas such as Leicester, Liverpool and many other cities, so it’s no surprise that professional landlords and prudent parents are dipping into the student market. The key to making a success of it, however, is to ensure students feel happy and appreciated in their new home.’