Recent reports reveal that purchasing student buy-to-let property is one of the highest performing asset investments you can make. The potential rental yields are impressive; with landlords achieving a 9.95% yield on average, which is considerably higher than renting to other tenant demographics.
Landlords continue view the student sector with trepidation. Their concerns are valid – after all, students don’t have an income and tend to be shorter-term tenants. However, things have changed in recent years, and now, students are among the most reliable sector to rent to. Here’s a few more details about why it pays to invest in property in the UK to rent to students.
Property Investment Opportunities: The Seven Benefits of Renting to Students
- Early commitment. Unlike other forms of rental, student tenancies are often agreed well in advance of the start of the term. This provides solid peace of mind – plus the guarantee that they’ll remain in the property for at least a year.
- Reliable rent payment. Students are often perceived as ‘late payers’, which is why historically, some landlords steer clear. However, students are frequently more reliable than other tenants when it comes to payment. Rent collection is easily arranged, plus most students come with very reliable guarantors – their parents!
- Thriving market. Find a buy-to-let property for sale in the right location, and you’ll have a captive audience. University towns with large student populations are ideal – and ensure a continual flow of tenants for your property.
- HMO potential. Students are happy to live in shared accommodation with a number of other students, which immediately maximises your rental yield. If you decide to develop a student property portfolio, this can be extended even further. A property investment agent will be able to assist with getting your portfolio established.
- Overseas students. Thousands of students travel to the UK to study here, and they’re willing to pay a premium for high quality rented accommodation. This is an extremely lucrative market and worth exploring further.
- Less location specific. Of course, to rent to students, you need to be near a university and ideally close to local amenities. However, students aren’t so bothered when it comes to living in ‘desirable’ areas. Nor will they complain if they’re next to a busy road, or have a view of the local car-park. This allows for greater scope when looking for a bargain property.
- Long-term potential. Most universities in the UK are well established. As a result, you’re likely to enjoy a steady stream of students for several years – which is excellent news for landlords looking to generate a longer-term source of income.
The Buy2Let Shop
If you’re looking for a buy-to-let property for sale to rent to students, talk to The Buy2Let Shop. We’re a team of property investment agents in London, and we’ll help you find the right property for your requirements. If you’re looking for investment properties in the UK, we also offer assistance with buying a house at auction, and hold regular property seminars to improve your knowledge of the market.
To find out more, simply visit The Buy2Let Shop website today.