Landlords: Why you shouldn't ignore the student demographic

Roy Brooks September Blog

The student rental market is often dismissed by prospective landlords as they don't think about its potential, and instead worry about the risk of damage to the property and the perceived lack of student funds.

However, when you break it down and look at the facts and figures, students are potentially one of the most profitable demographics to let to and most certainly shouldn't be overlooked.

Primarily, if you're thinking of becoming a landlord, your main aim to generate a generous amount of income for yourself. Now is a fantastic time to invest in the market as rental figures are at an all-time high, especially in London, where estate and letting agents Roy Brooksoperate.

In July this year, average UK rents reached a high of £937 per month, up 4.6 per cent compared to the previous year, as supply of rental stock continues to diminish.

Letting your property to students in particular gives you the opportunity to earn a higher yield by going down the House in Multiple Occupation (HMO) route, letting to numerous tenants.

According to Paragon Mortgages, the current average yield for a rental property in the UK is just over 6%, however the average student let has the potential to generate around 8%. Here at Roy Brooks, if you would like to know how much rent you could generate from your property, then we have a free, instant online valuation tool which we advise you check out!

When you're perusing the properties to buy, it's important you look at how many people it can house. For student lets, three bedroom properties are extremely popular, and it's even better if you're able to change the living area of this 3 bed into a fourth bedroom.

You must also remember that if you choose to appeal to student tenants, then you'll be pleased to know that they are often less fussy than the other tenant demographics. However, this doesn't mean that you can afford to neglect your property, but if the kitchen doesn't have state-of-the-art appliances, then students are less likely to worry about it, as they just require the basic amenities.

There are exceptions, though, while undergraduates may be happy with less mod-cons and fancy features, post graduates will have similar expectations to young professional renters.

As a precautionary method, before agreeing a student let, ensure that you have a guarantor for each renter. This ensures that you remain protected if anything goes awry. If you require assistance in managing your property and assisting with guarantors and so forth, then Roy Brooks can offer our tried and tested property management services.
If, like every landlord worth their salt, you would like to minimise void periods for your property, then the key thing to consider regarding students is where your property is located. You want your rental property to be close to local amenities such as bars, restaurants, clubs, libraries and the university itself, as many students will not have the luxury of having a car.

Ultimately, student tenants are fairly easy to please and can provide an opportunity to generate a high amount of income for landlords. Market your property to students today and see what you've been missing!

If you're considering letting out your property to students in areas such as East Dulwich, Brixton and Blackheath, or elsewhere in South London, then we can market your rental property to its full potential.
If you would like further information about letting property then don't hesitate to get in touch with our property specialists on: 020 8299 3021.