Student Accommodation – the Perfect Property Investment

It’s a well-known fact that following their first year at university, students are required to find their own accommodation. Figures released by universities however show that only around 50% are guaranteed a place in university-associated dwellings. This means that there are thousands and thousands of students every year looking for decent private accommodation.

As a property investor you can probably see that investment properties for the student market hold great potential for long term profit. Buy to let mortgages are becoming easier to obtain, and especially if you intend to target the student market. The need for rental property that is suitable for student use is on-going and there will rarely be a time when your investment property is unoccupied.

Getting it right

Of course in order to make a profit from a student rental property you first have to find a property that appeals to students. You might be the nicest private landlord in the world but if your investment property is in the wrong location, is in bad condition, is too small or is too expensive to run you’ll often have a problem renting it out.

The perfect investment property will be easily within your price range whilst also having the potential to generate a good monthly income. Student properties regularly rent for a higher monthly amount than non-student residential property, but you have to attract the students before you start to make a profit.

You might want to consider redecorating, adding some essential fixtures and fittings, putting in new carpets, a bathroom suite or kitchen appliances to make your investment property appealing. You’ll only have to do this once, and if you can find a BMV property to start with these added extras won’t break the bank. Making a student rental property appealing may take a bit of time and money but it will guarantee tenants throughout the year, every year.

Don’t forget landlord insurance

Another well-known fact about students is that they can occasionally get a bit boisterous and accidents do happen. Of course, as a property investor and a landlord you’ll know to get a deposit from your tenants that covers any intentional damage, but what about true accidents?

Landlord’s insurance covers many forms of accidental damage, including floods, fires and window breakages. It can also cover rent payments if your investment property is deemed uninhabitable due to an insured accident, and it can help to find your student tenants alternative accommodation while repairs are carried out. In other words, landlord insurance is vital if you intend to go down the student property rental road.

You might also want to consider using letting agents to market your investment properties. This way you know that the students moving in have been referenced and credit checked and aren’t the sort to cause intentional damage to your property or possessions.

In conclusion

Providing you take the time to look for an investment property suitable for use as student accommodation, you put a bit of effort into making the place inhabitable and you try to be a landlord rather than just a property investor you can make a very healthy profit from this type of property investment. Many students today are willing to pay higher rents for decent accommodation and a landlord that cares, and at the end of the day higher rents equal more profit and a chance to expand your rental property portfolio even further.