Why Is Student Investment Better Than A Typical Buy-To-Let?

Student property in the UK is all about high rental yields. Investors can invest remotely and have the whole process and hassle removed by the management company who will take care of collecting the rent and any maintenance. There is absolutely zero hassle, and rental returns are higher than from any other buy-to-let investment.

Getting a college degree is a minimum requirement to get a good job – it opens more doors. UK universities will continue attracting home and international students. UCAS, the company which deals with applications to Britain’s universities, reported that an additional 19,000 students applied to go to university in 2013 compared to 2012 and the trend is said to continue.

Student property has always been a way for buy-to-let investors to benefit from houses of multiple occupation (HMOs). Student houses offer higher yields, simply because each individual person who lives in the property has to pay rent. This is quite unlike the typical buy-to-let investment where one family pays the rent for the whole apartment or building.

A major benefit of investing in student accommodation over other property types is almost no void period. Because of the huge demand and low supply levels, you can count on 99% occupancy rates and students with year-long tenancies.

According to one survey, leasing property to students on a per room basis, landlords were able to achieve yields of 6.45% on average in the UK, compared to 5.94% from properties rented out to families. Have a look at the selection of our Student Properties.

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Categories: Property Invest / UK property


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