How to Become a Student Landlord
How to Become a Student Landlord: Your Guide to Property Hotspots
With a rising numbers of students applying for university places and the start of a new semester just around the corner, now really is the time to think seriously about becoming a student landlord. Recent news indicates an increasing number of students have applied for university this year and in university towns and cities across the UK, there is always a demand for good quality rental accommodation. A very useful way for property investors to find property hotspots is to turn their attention to these areas where they will be guaranteed tenants.
Where there are large universities, there will always be undergraduate and postgraduate students, plus lecturers, in need of accommodation. In some areas, there may already be an overload of student rental properties, but one way of finding an area that may become even more of a hotspot is to look out for universities that are expanding, offering new courses or are experiencing an influx of student applications.
Is student property in demand?
One issue that is always worth exploring, whatever property you are looking to buy, is what the market for tenants is like. After all, there is no point buying a property with a view to letting, only to discover that you can’t get any tenants. When it comes to buying in university towns and cities, this issue comes into its own as, as long as you’re buying the right type of property and in a popular rental area, you could end up with a stream of tenants on a long-term basis.
It can be a bit tricky knowing exactly when to buy – too soon, and the regeneration plans may fall through or get pushed back, too late and you could miss out on making a profit – but there are sadly no hard and fast rules as to what’s best and a lot of it comes down to good instinct and sound research.
Property Investment Expert David Coughlin says:
“If you buy properties in good areas in prosperous cities with good universities you cannot go wrong. You have to be careful in certain area of cities like Leeds as some of the housing is poor and the resale market could be slow; i.e. only investors will be interested. Ideally you want to buy in areas where the local public will also want to buy and places like York, Manchester and London most definitely fit the bill. Your investment will increase in value and generate good rental returns but you may not be able to find the best bargains unless you can buy quickly with cash”.
Top Tips for Student Landlords – The 3 R’s!
· Research – Whatever your plan of action, it’s important to research the market in university towns and cities carefully, so that you can identify the areas where students and lecturers like to live and the types of properties that are favourable.
· Rental Options – There are several possibilities for landlords buying in university towns and cities, as properties can be rented as HMOS, small studios or flats for one or two students, or properties aimed at post-grad students or lecturers.
· Regeneration – The main thing is to carefully research what the regeneration plans are including. A good regeneration scheme will not only be looking to provide new homes and buildings, but also offer good incentive for local businesses, communities, schools and leisure facilities.
More information about David Coughlin and HBF Investment Properties can be found at www.hbfinvestmentproperties.co.uk