The Benefits of Student Accommodation for Buy-To-Let Landlords

  Sep 2, 2020       No Comments   

Historically, August is a busy month for the letting industry. Vastly taken up by a surge of young people looking for their student accommodation for the new term of university starting in September. This also poses a great opportunity for buy-to-let landlords to consider investing in the student accommodation market. Here’s why… 

University numbers are soaring 

Last year, a new record was hit when almost four in ten young people in England were applying for university. With a record number of applicants means that a percentage of those will be seeking accommodation. This provides a great opportunity for a buy-to-let landlord to invest in the student market to provide top quality student housing. 

You are helping University Halls of Residence 

Traditionally in the first year of university students would opt for halls residency, which is sourced and provided by the university itself. However this comes with immense demand on the university to provide enough accommodation and, with the soar in applicants, there are not enough rooms available on campus for everyone. As a buy-to-let landlord, you are helping house students in private-rented accommodation. 

Secure market to invest in

Year in, year out there will always be students attending university and there will always be students moving away for university – therefore looking for accommodation. This provides a secure market for buy-to-let landlords to invest in and in return, provides a certainty of income. Don’t just take our word for it, even when university experts had expected applications to decline due to COVID-19, this year has seen the highest number of university applicants in four years, proving that the higher-education market is one of the few that has managed to overcome the pandemic unscathed.

Purpose-built student accommodation is in demand

If you are considering investing in the student market, it is always wise to invest in a purpose-built property. A purpose-built property provides all of the benefits of living in halls, but for private accommodation. For example:

• Common rooms / shared space 
• Free Wi-fi
• Dedicated study spaces
• Walking distance to campus and local amenities 
• Close to local nightlife and potential work opportunities 

Your rent payments are guaranteed

As with the majority of rental contracts, there is always a guarantor on record if the tenant cannot make the necessary payments. As a landlord, that is your rent guarantee. This could be the student’s parents or a close family friend who has the finances set up to meet the payments on their behalf. 

There is always the possibility of a long-term tenant 

Generally, a degree would be complete within three to four years. If your student tenant is happy and as a landlord you serve them well, there could always be the possibility of them pursuing their contract long-term if they decide to stay in the area and enjoy the property they are in. 

Market your property with Prem-Lets

The team at Prem-Lets understand that finding a suitable tenant for your property is high on your priority list, but it’s certainly not the only thing to take into consideration so let us help! We have the experience and knowledge to give every landlord an individually tailored service and we’re in a great position to advise you about the market and regulations. Get in touch with our team today to learn more and get started!