Student Property Investment Can End Tenants Arrears Issues

Investing in Student property is now increasing in popularity due to less problems and hassle caused by tenants.

Rental prices and returns in the UK are now sitting at an all-time high and the usual buy-to-let investments are often lucrative and successful, but they do take up time and a level of commitment when it comes to dealing with problems and responsibilities. One issue commonly experienced by landlords is that of late payments.

The National Landlords Association (NLA) have carried out research that shows that nearly a third of landlords, in the last 12 months have experienced rent arrears. The report from the NLA shows that rent arrears averaged around £1,649 which equates to a total of £850 million throughout the UK.

This research falls in line with a the latest campaign from the NLA which is known as Rent, Risk, Resolve and the purpose of this campaign is to highlight the risks that Landlords face such as arrears, increasing interest rates, licensing and regulation and rent controls whilst helping to minimise the impact.

When it comes to rent arrears a landlord on average has two tenants who have failed to pay their rent and this can have a severe impact on the business as well as the personal life of the landlord. If rent is not paid then it can have an effect on mortgage payments and with a lack of checking it can really begin to mount up and cause problems.

The most effective way to reduce the potential of rent arrears is to factor these costs into plans at the earliest point. This is usually planning for 10 months out of 12 months’ rent, giving a margin for any costs that may be unexpected. A check on the tenant can prove effective and could really help to eliminate any potential problematic tenants leading to a happy tenancy for all involved.
It is important however to monitor payments carefully and the moment that a payment is late is the time to act and speak with the tenant. There could be a legitimate reason for late payment but a repayment plan can be put in place which can bring an element of control to the situation.

All landlords will experience one or more of these problems at some stage during their ownership of a rental property and it is important for them to understand the threats that they may face and how it can affect their business. One way to overcome these problems and help maintain an additional income with good rental returns is to invest in student properties for sale. In those developments that are purpose built, rents are often paid in bulk before the start of term times and on-site management teams deal with any problems that may arise.

There has been a significant increase in the amount of student accommodation available in the UK as there has been around £6 billion spent on new developments which has resulted in investing in student accommodation becoming a very viable and popular option.

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Hopwood House are UK property investment specialists, with a wide portfolio of investment opportunities in exotic locations across the world.

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