Why You Should Be Investing in Student Accommodation
Statistics have shown that for 2016-2017 there has been a 2% rise in students attending university. This figure was up to nearly 2.32m in the last academic year. There has also been an onward growth in the number of new students taking degrees. First year students on postgraduate courses in 2016-2017 has reached its highest point since 2006-2007.
With the need for student accommodation being on the up and up, landlords are in a prime position to invest in the relevant property. If you’re an experienced landlord or a first-time property buyer, here’s are some points to consider:-
- Where are the best areas to invest in?
- Which are the most profitable properties to buy?
- Is it a good idea to divide property into multiple units?
- Should I ask a letting agent to manage the property?
Take some time to find the relevant answers to help assist you with your decision to invest.
A decent return
Businesses and landlords want a decent return when they buy property to let. You just have to know what you’re doing to make a good yield. Student accommodation is usually very affordable to purchase. If you intend having many tenants in one building, ask for a higher rent.
With over 2.32 million students studying in the UK, the student lettings market is flourishing. Purpose-built accommodation is often expensive so a house, flat or apartment is more appealing to young people. If students are sharing the property and one tenant cannot pay his or her way, generally the others provide sufficient funds so the rent is paid.
Which type of property to buy
With so many different kinds of property available to buy, do a little research first. Lots of students prefer to live close to their friends and the university. Flats on the outskirts of town may be cheaper to rent out but somewhere nearer the centre of town could bring in a higher rent.
Students these days also want a placeto live that’s more like their own home. Landlords should try to make sure their properties:-
- Are fully furnished
- Have high speed internet
- Have decent sized rooms
- Include a fully fitted kitchen and bathroom
- Have comfortable bedrooms
Buy to let property
When investing in student accommodation, keep a look out for property that might be coming onto the market. There’s a lot of competition out there, so your property has to appeal to the student population. Investing in student accommodation will reap its rewards especially when buying in the right area.