Students are an excellent prospect for landlords wishing to maximise their return on investment. They are in ample supply, meaning an almost certain let, a greater choice of tenant and fewer void periods. Reliable student loans and parental guarantees mean that students are also less likely to default than they were in the past.
But there are certain aspects of letting to students that you should consider if you are to enjoy your investment. Certainly the best type of property to let to students is one that is within cycling distance or an easy bus ride from the local college. Your choice of street is less important than ease of access, so expensive upmarket addresses can be avoided.
A property with several rooms, ideally each of roughly equal size, tends to let more readily than an “imbalanced” one, as students are likely to rent the property with a group of friends. Secondly, expect parties! So décor and furnishings for this relatively undiscerning social group can be cheap but practical, but do buy heavy-duty carpets and washable curtains/loose covers. With say four adults in the property the washing machine will take a hammering so it’s worth investing in a robust one. Students are unlikely to tend a garden, but somewhere to park a bike (or five) can clinch a deal.
There are potential issues for larger properties falling into HMO (Houses in Multiple Occupation) legislation so please contact us on this point.
One last important point. Students are unlikely to use the property during the holidays, and will prefer to commence a tenancy at the start of the academic year in September/October. It can therefore be worth charging a slightly lower rent for the first two months, but securing the tenancy in June, to avoid an initial void period. We usually find we are able to achieve this for our clients, so please feel free to contact us if you are considering this lucrative investment opportunity.