With student numbers rising all over the UK, landlords can expect to make substantial profits. Recent research has shown that landlords will find better rental yields in UK towns and cities that have a high student population. With more demand for student accommodation, it’s a win win situation for many property owners.
What do students want?
More and more students are leaving comfortable homes to study elsewhere in the country. They want to live as well as they did when at home so are looking for high-end accommodation. Students are also willing to pay more rent to have:-
- Plasma TVs
- White goods
- Superfast Broadband
For those sharing a flat, apartment or house, costs can be kept affordable, especially if it’s close to their university. New students more often than not spend their first year in the Halls of Residence or in an HMO (house in multiple occupation). However, most prefer living on their own as their budgets can usually stretch to higher rents.
High rental income
Often student accommodation is based on a “let per room basis”. This means landlords can certainly generate a high rental income. The downside to this is that maintenance can be costly as many students leave property in a bit of a state.
The top five places in the UK for high rental yields are:-
- Newcastle upon Tyne
Savvy landlords know that student rentals are a lucrative opportunity. They are often more reliable than most tenants with some having the backing of parents acting as guarantors. Others may have their rent subsidised with a student loan.
Another reason for letting property to students is they usually arrange accommodation six months in advance. This certainly minimises the risk of void periods of occupation in property.
Do your homework
As a landlord to make good profits when renting out property to students, it always pays to do a little research. The student sector can be very profitable with attractive yields and reliable tenancies. Check out useful information online to find statistics and advice regarding letting your property to students before advertising it online or in the media.
Remember students prefer property close to their chosen university or within easy reach. They tend to look for affordability, so don’t price yourself out of the renting market. Having a flat, apartment or house in good, clean condition will attract a student or students who are used to a reasonable standard of living. Make sure your property is well furnished and the electricals are all in good working order.
When property problems are sorted out without any hassle, expect a good landlord/student relationship. So, look forward to a good return from your property portfolio when renting out to students. Don’t miss out on student rental property opportunities. With students from the UK and around the world looking for decent, affordable accommodation to rent, it couldn’t be a better time to be a landlord.