Is student accommodation a good investment?
When it comes to purchasing property to let out as an investment there seems to be plenty to pick from. Whether you rent out to a family, turn a property into flats or perhaps pick student accommodation there is always things to think about.
One is which investment is right for you. Student accommodation is fast becoming a popular choice. In fact, a recent annual landlord report showed that 69% of landlords prefer to let to students over other tenants.
So what makes student accommodation a great investment? Here are some of the reasons that many landlords will give.
An ongoing market
If you decide to purchase a property to turn it into student accommodation, then you will find that there is always going to be students looking for somewhere to live whilst they study.
With every group of students who graduate and move on, there will be others to take their place. This means that your property is always likely to have tenants ready to live there and pay rent.
One concern that many people have when entering into becoming a student landlord is whether or not their rent will be paid on time. Often family members, in particular parents, will offer financial support to their children who are studying and this is likely to come in the form of paying their rent.
With this in mind, landlords of student accommodation will often receive their rent directly from parents and therefore receive it on time.
Whilst we don’t like to think about tenants as a potential profit, the nature of an investment is that it makes you money. Student accommodation is known to have one of the greatest yield for profit out of other let agreements.
With multiple students living in one home you can see a higher rental income then you would be able to charge if you only had one family living in the property.
Are there any downsides?
Renting to students can have its issues which you should be aware of before you agree to the tenancy. It is important to build a good relationship with the students who live in the property as this will help when it comes to inspections.
It is also more likely that students will take care of their own space if they feel respectful of their landlord, after all, just like a parent figure, they won’t want to disappoint you.
There are also additional insurances that you will need to be aware of when letting to students so ensure that you speak to an expert in the industry.
Here at Kearney Auctioneers we have a wide variety of properties for sale on our website which will make the perfect student accommodation investment. So why not take a look and see if you can find your perfect property?