The number of students going to College is increasing more than ever. Not all Colleges have on-campus housing. Even if they do, they are quite often only for the first year students. So then it becomes the time to look for somewhere off campus to live. This happens year after year. So there are always students going to be looking for somewhere to live while they study. In recent years, investing in student property has become a fast growing business. It can certainly be a lucrative investment if it is done right. So here are some reasons why it might be for you.
High Yield
When you are renting out to students, you can charge per room. If you are renting out to a family, you only charge for the property as a whole. So you are making more money with students in the property than anyone else. You can charge what will sound like a good deal to the students, as they will pay individually. But when you add it all up, it will more than over any mortgage costs for you, as well as providing you with an income stream. Student accommodation can yield around 10% each year. Normal buying to let properties usually only average about 6%. So it is certainly something to look into, for that reason alone. So check out prices in your local student area and work out what the yield could be. Looking at properties from EntwistleGreen.co.uk could be a good place to start, as well as the college’s website.
Anyone Can Do It
Provided that you have a way to finance the property, and have a way to keep up with the maintenance, you can invest. You do become someone’s landlord, so there is time taken up with all of that. However, you can have an agency cover that for you if needed. There would be fees involved, but it takes some pressure off you. It goes to illustrate the point, though, that anyone can invest. You don’t have to give up your job to do it either. You can run this alongside any other work commitments. It is just a great way to bring in an extra stream of income, as well as some solid investments; the properties!
Hassle-Free Investment
If you decide to invest in student properties, it can be a relatively hassle-free investment. There are contracts signed by the students as well as countersignatories and guarantors. So you know that for a year, or however long the contract is, that you will be getting money coming in. So it makes it easy to plan and deal with other investments. There are the on-going issues with maintenance, but they come with any home. If you are concerned about students causing damage to the property, you can put things in their contracts. Then if they do cause any damage, they will be liable to pay. So it doesn’t have to all be costly and come out of your pocket.
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