Why Renting Property to Students is Lucrative?

Students Propery

University or school season is the time when college students scramble for a place to live. This must be harvest time for landlords but property managers and landlords do harbour some reluctance in the matter of admitting student residents as tenants. But when it is analysed objectively, it is not all that bad.

Studies show that student renting in the UK offers a much higher yield than letting the property to single tenants. So the average rent is above 6 percent of the national average although variations may exist across the country. Student rentals can significantly outperform and than multi lets for professional tenants for several reasons:

Flexibility: Some landlords prefer student tenants as they are not fussy. They will accommodate themselves even in those areas which are not suitable for professional tenants and also in places where capital values of properties are lower. This benefits the landlords in the form of higher rental yields. One more option is to let out more rooms to student tenants increasing the potential rent. For example, many landlords who let a 3 bed house will also let the lounge as a bedroom by increasing potential rent by another 25 percent.

Location: There are certain pockets in the city where the student population is substantial. Thus Imperial Wharfs Flat rent is popular and relied by university students for economical accommodation as well as leverage attractive advantages of the location.

Better Yield: Student properties offer a yield premium of around 25 per cent above the market average.

No Complaints: There are many benefits for landlords in welcoming college student residents in rental properties. As novice renters they might not have high expectations just as a working professional, as far as a property’s furnishing is concerned. They will not crib over things like outdated appliances or funky painted walls unnecessarily.

Advance pay: Often times, parents helps kids with rents when they are in college. Rather than sending the money to kids and kids passing the money to the landlord, many parents pay up several months of rent up front. This means there is no question of late payments as rent gets paid in bulk that too for a few months together.

Easy advertising: For landlords, getting student tenants are also easy. They can advertise on the university’s site. So college students who are new to renting will only turn to their university’s website for guidance. Advertisements on the university’s housing site make the landlord more reliable and trusted than an advertiser on Craigslist.

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