Student Letting
If you are considering letting to students you will want an investment property close to the university or college. It is unlikely you will want an upmarket property for this type of let, as students have limited incomes and a lot to spend it on. Rent is not generally something they will want to spend too much on! A house with several rooms that can be let out to a group sharing is the best type of accommodation for this market. It may be a group of friends or a group of individuals, so expect parties.
Tip
Don't put any expensive furniture items in the property. Durable and practical is best, because it is very likely to take quite a hammering. Students, by their very nature, are not the most conservative of tenants.
Key points when letting to students
• It should be a large house (preferably four bedrooms) with proximity to a `learning' centre.
• Durable furnishings.
• Preferably no garden.
• Good appliances and white goods.
• Heavy duty carpets in dark colours.
• Washable covers and curtains.
• Gas central heating (to avoid condensation problems).
• Outside space ... to park bicycles!
Tip
Make sure the plumbing is up to scratch, as the boiler, shower and washing machine will all suffer from heavy use! Make sure all appliances can stand up to wear and tear. It would be a false economy to buy cheap white goods, as you will end up having to replace them sooner rather than later.
What are the benefits of renting to students?
This type of accommodation can often be very good for yield, as the properties do not incur expensive service charges.
What are the disadvantages?
These properties can often be void during the summer months, after the academic year has ended. There will also be regulations, particularly regarding fire precautions, that will need to be adhered to when renting out a property to students or any multiple occupancy households. Consider these estimated costs when calculating the yield.
