When young people attend University many after their first year decide to live off campus for slightly cheaper rental prices. There is a few things to consider before joining this niche of the market and clients have asked me in the past if these types of lettings are lucrative to landlords. Over this article I will go over a few things to consider and hopefully give you an insight into this market.
Generally the houses closer to universities will cost more than the average on the outskirts of the city but you don’t have to buy one next door to the campus anymore – many students are able to drive nowadays. It is important to remember that location is not as important as accessibility to the university and local amenities for students.
As more and more students attend Universities landlords can expect to fill their properties with ease each year giving them maximum return on their investment in the property. With student loans also being more reliable than ever the chance of tenants not paying their rent on time is minimised and with the addition of parental guarantees this risk is even further reduced.
So what type of property is ideal to rent to a group of students? You will want a house with multiple rooms and as many bedrooms as possible. If each room are of equal size then that is ideal however many landlords will charge the tenant in the smaller rooms slightly less than the amount they charge for the larger ones meaning the landlords are not actually out of pocket.
Furnishings for the property will need to be robust and not easily breakable. Good quality fridge, freezer and washing machines being essential as you will be providing for multiple adults. Decoration wise again can be basic but functional with heavy duty carpets and coverings vital as well as easily washable fittings as to minimise redecoration expenditure in following years. For gardens many landlords will opt for low maintenance ones as it is unlikely that a student will get the lawn mower out but somewhere to sit and have a quick smoke or a barbecue may be on the tick list.
There are potential issues for larger properties falling into HMO (Houses in Multiple Occupation) legislation so if you are unsure with this, give us a ring.
Students will often only wish to start the commencement of their rent in September/October when term starts. Charging a lower rent during June can help to avoid having a void period in a landlords property by enticing students in early “to settle in” which is something we would strive to achieve for you, so if you are interested in this thriving side of lettings, again feel free to give us a ring, email or a message on one of our social media platforms.