Buy to Let for Student Properties
Investment in student property is on the rise, expecting to increase by 17% this year. This is due to the growth of international students coming to study in the UK and the rise in UK nationals opting into higher and further education. This makes a buy to let investment in purpose built student accommodation or a house in multiple occupation an attractive proposition.
Why is now a good time to invest in student properties?
With student numbers increasing, there’s never been a better time to invest in student accommodation to meet the growing demand. Student tenants are more interested in location and the number of rooms rather than a fancy home, making a buy to let property an ideal investment. If you get the location right, it will reduce the risk of your student house being left unoccupied and provide you with a steady, secure income.
But before you jump right in, it’s important to consider every aspect of buy to let for student properties – which is what we are here to assist with.
Benefits of buy to let for student properties
The significant advantage of being a student property landlord is the returns you can make. Student lets are always in demand, as thousands of students attend universities in the UK and are willing to travel all across the country to go to the university of their choice. And once they’ve chosen the university they want to go to, their next priority is finding somewhere to live during the course of their degree.
As a student property landlord, you can have your letting period of around 1 year, which means that you’ll be constantly generating an income and you don’t have to worry about finding new occupants.
Also, when it comes to property buy to let mortgages for students, in order for students to get a lease, they are generally required to provide a guarantor which provides you with extra security knowing that the rent will be paid on time in full each month.
Types of accommodation
Students are seeking more than the traditional old-school university hall accommodation, which is why purpose-built student accommodation (PBSA) or homes of multiple occupancy (HMOs) are the most popular choice for students, as they are looking for more value for money. Which you can provide when you do the property up to a good standard.
Things to consider with BTL for student properties
When it comes to property investment, it’s important that you consider the potential downfalls of it, as well as the advantages. Student rooms provide a good opportunity for landlords to climb up the property ladder and receive guaranteed rent. However, a significant disadvantage of them is that they lose their resale value and capital growth potential, so its best to research student properties resale value before investing.