Practical Tips When Purchasing Buy To Let Property For Students
Demand for student housing is increasing and many investors are looking into the possibility of buying property and letting it to students. If you’re one of them, here are some things you may want to consider:
Find Out What Universities The Students Are Flocking To
This is, probably, the first thing you have to consider when purchasing buy to let property for students. Obviously, the smaller the student population, the lesser chances there are for your property to be occupied. You don’t want your property to be sitting empty for months or, worse, years, so you’ll have to find out the places where there are students who can occupy your property.
A great way to find out which universities have increasing or stable stream of students is to check the annual list curated by The Russell Group. This is a countdown of top 24 universities across the UK. University of Birmingham, University of Bristol, University of Cambridge, Cardiff University, and Durham University are just some of the schools included in the list.
Here’s some more buy to let advice to find out which universities have the highest population of non-EU students on their roster. Some buy to let agents claim that when a university is successful in attracting foreign students, it boosts their global standing, which makes their locations, in turn, top investment locations.
Choose Between HMO Or Single Lease Agreement
A determined property investor should know from the beginning what kind of strategy he’ll implement with his buy to let investment. This is crucial, since there are certain requirements which apply for different leasing arrangements.
Some buy to let criteria which are necessary for HMOs, aren’t really needed for single lease properties. For example, Homes in Multiple Occupations or HMOs (as they are commonly called) have to first meet specific square meters of bedroom space for different number of occupants before the council issues a license to operate HMOs. In single lease properties, you don’t have to worry about specified measurements, since you’ll only have one tenant living in one house.
Despite the many requirements needed for HMO approval, however, a lot of property investors still bet on this kind of investment because it brings in more cash. Think about it, in a single lease agreement, you only get to collect rent from one person every month, but in HMOs you can collect multiple rental yields every month out of just one property.
Keep these pros and cons in mind before choosing the right buy to let strategy for your property!
Partner Up With A Well-Known Builder
If you’re the type of person who doesn’t want to be hands on with his investment, an alternative way to get in buy to let properties for students is to invest money with a builder who develops student housing.
You can try investing your money with the Unite Group, they have a reputation for low vacancy rates and steady income for their investors, as a start, but you can also check out different builders online or in property magazines.