Buy to Let Advice
Is the student market for you?
Student Housing Market
Are you a landlord that has typically steered clear of student investments or rentals and the student market? Student accommodation is not what it used to be, today the student housing market is incredibly diverse and offers huge opportunities to landlords!
The private rental sector is becoming an important aspect of students higher education experience. Leaving home to study provides a taste of life in 'the real world' and means students make up a huge proportion of private tenants in the UK. There are many misconceptions that exist among property investors about letting to students which often puts them off. Transparent Mortgage Services are here to offer impartial and accurate advice.
Your Rental Income
When it comes to renting out a buy-to-let property there are two key factors to consider. Buy to let landlords need to know how much the rental income from this investment will total each month and how much it will cost to manage and maintain the property in comparison to the property price and mortgage payments. Informing yourself of these statistics means you are able to correctly assess if it is a worthwhile financial decision. Student housing provides a high rental yield and is a market to take advantage of!
Advantages of Letting to Students
Aspects of the student renting market appeal to landlords in particular. These advantages are:
- Reliable demand - students provide a reliable market year on year again. 2021 was a record year for student applications, which ensures the student market remains buoyant.
- Parental guarantors - parents and guardians of students are guarantors that landlords can rely on for assurance of rent being paid.
- Rental yields - letting to students provides a higher rental yield due to the demand - especially in smaller towns and cities that have a lower proportion of purpose-built student housing.
- Social positives - many landlords that rent to students benefit from the 'feel good factor' of providing necessary housing to those in the younger generation.
- Short tenancies - for some landlords the aspect of short-term tenancies is considered a great advantage.
What is Important to Students
If you are considering renting your buy-to-let property to students or investing in a buy-to-let property with the intention of it being student housing then it is important to know what students want from their housing. This is particularly important as landlords can be concerned with the level of competition of build-to-rent and purpose-built student accommodation - make your property the best choice for students. Most landlords believe the proximity to a university campus would be at the top of this list, whilst this is important students deemed good Wi-Fi and a competitive rent level as being more so. They placed less importance on the energy efficiency of the property and proximity to a gym.
Other Letting Opportunities
There are a number of other opportunities of your buy-to-let property being located within a university town or city. There will also be a demand from those associated with the university for other reasons other than studying. Universities tend to be one of the largest local employers.
Transparent Mortgage Services
Are you looking to secure a buy-to-let mortgage? Or wanting to switch to a new mortgage deal? Transparent Mortgage Services are an expert team of mortgage brokers. We are happy to offer advice and guidance, as well as, helping you to review your options. Get in contact today by emailing info@tms-fs.co.uk, we are also available to call on 01424 444 597.
