Why student landlords are top of the class for a great return
It’s that time of year again – as freshers start at university, full of hopes and ambitions for what their first term will bring.
And they all need somewhere to live!
Whether you are a proud parent with a new undergraduate in the family or an experienced property investor, there’s good money to be made from student housing.
Current predictions are that rental growth of one to five per cent is expected across the UK market for student property.
Prime yields are also anticipated to stay strong, with solid occupancy rates and an impressive rise in income for the coming academic year.
Epic Investment’ Greg Ford says: “Plenty has been said about how Brexit may or may not affect student housing, but in fact there are remaining factors that need to be taken into account by potential investors – all of them good!
“This sector is set to stay buoyant and resilient. Why? Because there is an on-going need for student housing as well as an influx of overseas students brought on by a depreciation in the value of the pound.
“We are still experiencing excellent levels of investment. UK – including Midlands-based higher education remains sought after, with some of the most attractive rental properties being closest to universities. The possibility of higher rents means higher returns for landlords.”
Benefits of this type of property investment include:
- Reliability of tenants – students often pose less risk than other types of tenants
- Opportunity for several tenants in one house, maximising returns
- Rent is likely to be paid in advance
- Fixed rate of return on your initial outlay
- No extra costs during ownership
- Peace of mind from a mitigated risk
- Continued demand
It’s vital if you are considering becoming a student landlord that you’re aware of your responsibilities.
These include:
- Making sure proper fire safety measures are in place – for licensed HMOs smoke detectors must be installed
- Ensuring yearly gas safety checks are carried out
- And electrics must be checked every five years
- Cooking and washing facilities are adequate
- Communal areas and shared facilities need to be clean and in good condition
If you are considering boosting your portfolio with a student HMO or becoming a first time investor, you can contact Greg for an informal and no obligation chat. Call on 0333 222 0859