Here’s why landlord’s should make the most of the student market
Alternatively, there’s plenty of high yield areas that are perfect to set up as a property manager. The likes of Manchester, Leeds and Birmingham are good bets for attracting students, with Durham and Warwick offering yields of 11.53 and 10.25% respectively. They’re big enough cities for young adults to let loose, but the lower mortgage payments offer better returns for you. There will be plenty of demand in these areas, with the north of England a good option for students who want to rent for less. What the majority are after is usually an en-suite, but they’re often flexible with facilities based on how many are sharing. Student properties can be a lucrative investment, especially if you go down the route of charging individually, providing you have a HMO licence and cover all the health and safety measures, as well as creating enough space for each tenant.
A smart idea would be to get a joint tenancy agreement signed for each flatmate, to cover you in case one moves out abruptly. Other amenities that could be your USP are games rooms or a nearby gym, preferably within the same building, while reasonable space to study and plenty of room to share in the kitchen is a must. Throw in decent cupboard space and a dining room table which is nice for forging friendships within the household. Ideally, it should be 30 minutes walking or closer from the main university campus, with the majority of students reluctant to travel far after a wild night out or difficult weather conditions, when you factor in most don’t have a car after typically moving from school. With students, they are ideal tenants for landlords because of there flexibility. One area to consider is most require furnished properties to reduce the stress of moving to a new location, plus a garden is a great selling point too. If you can kit out the property with some trendy sofas, a TV, a stylish kitchen and large enough bedrooms to unwind, you’re on to a winner.
The rental market is changing with every passing month and Brexit looms in the not too distant future. For now, there’s uncertainty because some experts believe it will make house prices drop significantly. Bearing that in mind, it’s up to you as a landlord to stay switched on to changes in the industry and make the most of your investment. Renting to students is one of the best yields for you because they tend to rent the whole year which can give you reassurance and they’re always a reliable source of income. Students tend to start looking for properties to move in for the second and third year after January, so if you can market the right way then, you’ll stand a good chance of beating the competition to hand over the keys!
Students will be able to sign up with the YouRent subscription list to find their ideal properties in the area, so if you can advertise on this platform, they will have a better chance of finding you across multiple channels, reducing your chances of a void period. The best way to corner this market is by offering a suitable apartment or house in the right area which caters to their needs, both in terms of price and accessibility to the university, nearby bars and restaurants too. If you can market on the suitable social networks, on online platforms such as YouRent that list up to date properties for discounted prices and across marketplaces such as Rightmove and Zoopla, you’ll be quids in, which leaves some spare cash for any maintenance which might be needed with students!