If you want to let to students, then do your homework


In 2013, the return on investment for those in the student housing sector was at around 9.95 percent, more than 3 percentage points higher than the gross residential listings. This goes to show that there is a potential for very good returns for those investing in student accommodation. Many property investors have been attracted to student accommodation in recent years due to the all but guaranteed tenancies and an increase in the number of wealthy international students. Students also have their parents to serve as guarantors. According to experts, landlords with good student housing have a very reliable market that is also quite predictable.
However, blindly following the idea that student housing makes for good property investment isn’t a good idea because it doesn’t always serve the best interest of certain types of investors. For investors who are looking for a source of income that is regular and reliable, this is the way to go but for those trying to build a long-term portfolio, this isn’t necessarily the best option. Selling student accommodation for a profit isn’t easy because investors are the only ones who will be looking to buy and they’ll be trying to get the property for as low a price as possible.
Beyond that, even if student housing is your property investment of choice, there is the challenge of choosing the right location and the right property although there are companies that can help with this. Locations that are considered to be potentially lucrative at the moment when it comes to student housing include Bath, London, Oxford, Cambridge, Brighton, Edinburgh and St Andrews. Manchester, Liverpool, Bournemouth, Glasgow and Canterbury are also good alternatives. These locations have a thriving rental market, highly ranked universities and a favourable student demographic.
Hotel-style studio apartments are said to be currently attractive to post-graduate students and according to investment firm, Assetz, Southampton, York and Leicester are the current hotspots for such. However, it’s still important to carry out your own research. You need to investigate factors such as what drives the economy in a particular locality and the current demand for tenants. You should also explore further to find out if there are factors that could alter the demand for the kind of accommodation you’re planning to offer. For example, if a university is building its own student residences, this could negatively impact private landlords.
Other factors you’ll also want to consider include, high-quality student housing can be a good hands-off investment opportunity since there’s usually an investment management company to do the running but you’ll be better off with modern buildings compared to period buildings which may require more maintenance. The buildings only need to be functional and don’t need high-end furnishing. A good location will be one that is close to a campus but also allows the students to easily access the town. With this sort of accommodation, a good transport link is important but it’s not necessary to have the housing in a high-end residential area. Access and cost are the factors that matter the most.

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