Are you a landlord looking for new investments and ways to utilise your properties? Then why not rent to students? Some landlords are put off by the thought of renting to students due to the stereotype of binge-drinking, lack of being able to manage money and hate of cleaning. Many landlords will think of sinks overflowing with dirty dishes, bedrooms stacked with pizza boxes and beer cans, and an unspeakable state bathroom. Aside from the negative stereotypes, renting to students can be an excellent way of having a regular income and secure occupancy so we have rounded up the reasons you should consider renting to students.
In recent years the demand for student accommodation is exceeding availability, with students struggling to find accommodation near their universities. Nowhere is this more of an issue then in London. In 2013, 233,000 full-time students in London were unable to access either halls of residence or purpose-built student accommodation. But what does all this mean to a landlord? What are the top reasons to rent to students? Read on for a breakdown of why renting to students can be a pretty smart idea.
Tenants that stay for longer
Students normally look for a tenancy agreement of 12 months. This relieves a lot of stress from landlords having to find occupants regularly.
Invest in a growing market
The number of students, especially foreign students is steadily rising. This gives landlords great opportunities to maximise their income through renting several properties to students.
Get your rent in advance
Students generally don’t pay their rent in regular monthly payments that other renters due. Student tenants often pay up front for their term time/semester. This is a handy benefit for a landlord as they have the rent in advance, allowing them to pay any mortgage or other costs.
Maximise your property’s earning potential
A 3-bedroom property can easily home 4 students. In student properties the living rooms and/or dining rooms are often turned into bedrooms, making the most of the spaces available and giving landlords more income.
Less picky students
Students typically, especially undergraduates, tend not to be as fussy about where they rent compared with tenants who are professionals. Students are much more forgiving of outdated furniture, a garish avocado bathroom suit and a less than pristine carpets. But landlords shouldn’t take advantage too much. Mature and foreign students tend to expect a high standard to a professional level in places they’re looking to rent during their time studying.
Foreign students pay more
With tuition fees for foreign students being quite more than domestic students’ fees, it makes sense that international students have more money behind them. Some of these students are willing to pay up to £1000 p/w for a central London flat! This also applies to their living arrangements, so landlords can make more money by letting to foreign students.
Harness the earning power of universities’ location
Looking for properties in East London it’s a great idea as it places you near to several university campuses. Students like to live on average around 30mins walk from their campuses, so this is worth keeping in mind. There is the University of East London. This uni has two campuses, one in Stratford and the other in Docklands, giving you a wider range of potential locations to buy student accommodation. University Square Stratford is another institution to be aware of. The average three-bedroom house prices in Stratford are currently around £550,000 whilst a house in Docklands can cost you £1,0300,00.
So, if you decide to buy a property with the view of turning it into student accommodation, then now is a great time to do so. Take advantage of the current situation and provide quality accommodation for students in East London.
If you’d like to take a look at potential student accommodation properties in East London, then get in touch with Peach Properties or come in for a chat. We’d love to hear from you.