Students A Profitable Market For Buy-To-Let
Category Advice
Your ideal tenant may be a clean, tidy, full time professional - or in other words everything a student is not. However, there are a myriad of surprising benefits which come with renting out a property to students. While students may not have much money and can be typically classified as messy party-goers, university students may have alternative benefits which surpass that of other tenants. Investing in a buy-to-let property near a university is particularly advantageous and landlords should be made aware of the benefits of renting out a property to students, such as:
1. High demand
There’s always a big market of students looking for accommodation, making rental properties in very high demand. A high demand for your property will ensure that your property fetches a good price, allowing for high yields. More so, you will not have any problems trying to find tenants as there will always be a large number of students, year on year, searching for accommodation.
2. Year-long tenants
Most students will need a place to live throughout the duration of the university year, so tenancies usually last for 12 months. Knowing that your property will be occupied for an entire year, guarantees your income and takes the stress out of having to find a new set of tenants. However, if you do need to find new tenants during the school year, you can take comfort in knowing that there are thousands of students searching for properties and that it will be a short, stress free endeavor.
3. Low expectations
Students aren’t too concerned with whether your property has a seaview and what condition the carpets are in. They are more likely to be happy to have a place to call their own, rather than worrying over the age or quality of the furnishings. This can make you feel a lot less stressed about keeping the property in excellent condition as you usually would for a family, saving you money and time.
4. You can rent out each room
As students are usually looking for a minimal amount of space in which to live, so as to make their rent more affordable, they’re much more likely rent out one room each and therefore to accept individual tenancy agreements. This helps your tenants out if one of them decides to leave, as they won’t all have to cover the missing rent, and they can more easily attract a new housemate. You’ll also be able to charge more for the property as a collection of separate rooms than for a whole property.
5. They’re usually financially stable
Although students may not have the income of a working professional couple or family, they usually have a properly budgeted student loan which should be enough to ensure that their rent is paid every month. Alternatively, many students do not pay their rent themselves and instead their rent is paid by their parents each month on time.
Many property owners looking to rent out their properties tend to avoid accepting students as tenants without considering the plethora of benefits which come with renting a property to students. Leasing out your property to students can be highly profitable due to factors such as: high demand year on year, individually renting out each room and fewer revamp costs.
Author: Dormehl Property Group
