Why letting properties to students is a good idea
The new academic year across the UK is now only a few weeks away, with students the length and breadth of the country now finalising everything for their new ventures into the world of further education. One key aspect many will currently be looking to get confirmed is where they are going to live for the year ahead, something that the UK's private rented sector has played an increasingly important role in across the last few years.
Traditionally, students have not been favoured tenants in the world of private lettings. Seen as messy, lazy and less likely to respect the property, many agents and landlords would rather let to families and young professionals than students. But this has all changed in recent years, and students are now seen as aspirational and good tenants in general.
Here, we take a look at just a few reasons you should be looking to rent out properties to students, particularly at such an important time of year.
Demand is high
The demand from the student market for properties remains high, as it has been for a number of years now. With nearly half a million students applying for a place at university in the UK every year, campus accommodation has never been more stretched, and it means an increasing number of students looking to live in the private rented sector, rather than in university-owned properties.
This level of demand is not likely to be a flash in the pan either. Applicant numbers have been at record highs for a number of years, and they're not likely to fall any time soon!
One of the most difficult parts of the rental market for landlords and agents is dealing with the uncertainty that comes coupled with it. Because of the short-term nature of tenancies, many people can up and leave at any time, especially when they get a new job. This can leave unexpected void periods to deal with, and a scramble for a new tenant.
This is not something that those in the student market ever have to deal with, however. Student lets are far more consistent, and generally speaking, you know someone renting your property will be coming in in September and staying until early the next summer, making your strategy far easier to plan.
One of the biggest benefits of the student market, however, is the high yields that can be found in this area of the rental sector. Students will often share properties with friends or classmates, and this means that landlords are able to charge per room, rather than for the whole property. In many cases, this means that the yields are far higher than can be achieved in the mainstream market.
Typically, the yields that can be achieved in student lets will top eight per cent, even creeping towards ten per cent in some of the more in demand areas nationwide.