Accommodating Students For Rental Returns
As UK house prices plummet, there are ever growing options to purchase value-for-money properties with the aim of renting out to tenants. With the number of university students at an all time high, it seems the perfect opportunity for a buy-to-let principle aimed towards student accommodation. This niche market, if approached correctly, can provide high rental returns and quench the large supply and demand in some areas that drastically need more student accommodation. The high demand for student accommodation will continue to rise, as university places grow year upon year. There is a plethora of plus factors and negatives to take into account when considering the options.
Positive Factors
One of the biggest positives is that the student doesn’t request luxury standard accommodation. An average property could be average, but provide above average rental prices with a good buy-to-let philosophy. With the United Kingdom currently in recession, this would be the ideal solution in deciding whom to market your properties towards. High rental returns are guaranteed, because if you rent a three-bedroom house to a family, you only receive one rent payment in return. Where students are concerned, you could use the same three-bedroom property to obtain three separate rent payments and in most cases double your overall income. The buy-to-let student market has showed no signs whatsoever of being affected by the recession and university places are increasing, so the niche market is waiting for you.
Negative Factors
The obvious negative from a buy-to-let student mentality is it will become a full-time job for you. Students are notorious for late payments and they would not take care of the property the way a family or a professional couple would. There will no doubt be problems, because students are famous for partying and playing loud music, but if you know this from the beginning, you can anticipate it.
Getting your Foot in the Door
There are specialized agencies that advertise and market student accommodation, so hooking up with an agency could provide you with a quick root to reach your target consumer group. The universities themselves have an accommodation agent that deals with requests, so that could be another avenue to consider. You will have to research the surrounding areas of universities for the appropriate accommodation, but that should be the easy part. Remember, the student partakes in a course for a minimum of three years, and when they graduate there will be more willing tenants to take their place.