Letting to students presents an excellent opportunity for landlords. You are guaranteed higher demand and longer rental periods, contributing to high yields.
However, there are many factors that need to be considered before you can let to students. So if you don't want to be bottom of the class, get educated! Read this handy guide by Vincent Burch to understand just what it takes to be a landlord in the student let market.
It is widely accepted that student let is far more profitable than more traditional letting schemes. First, the demand in university towns and student areas are consistently strong. Second, students look to rent for 12 months minimum, so you don't have to worry about constantly finding new tenants. What's more, students lets also offer impressively high yields.
Experts recommended your property has at least 3 bedrooms and boasts a large communal space, such as a lounge or kitchen. Multiple bathrooms are particularly appealing, while a garden is a great selling point. Indeed, a suitable location (ideally within 30 minutes from campus) is an obvious factor.
Don't rip off your new tenants! Students will expect a well-furnished property, so its important to invest in the fundamentals. This means a fully functioning washing machine, fridge freezer and cooker, wardrobes, beds and sofa. Other furnishings include a vacuum cleaner, bins, carpets and curtains. If your property have a garden, you could even throw in a lawn mower!
Most students look for lets any time from January to move into the next academic year (August/September). Therefore, this is your peak advertising period. Students lets should be marketed the same way as you would a traditional let. List your property online, and be proactive in contacting local tenants. Also, ensure your agent has a good relationship with your local university so your property appears on their approved list of rentals.
Student let (or buy-to-let mortgages on properties let to students) are very competitively priced. A mortgage lenders criterion depends on the number of students occupying the property, how many rental agreements are established, and if the property requires an HMO license.
If your property is being rented to 4 students on a single AST shorthold tenancy, or the property does not require a HMO license, you could typically expect to pay a standard buy to let interest rate. However, if you let to 8 students on 8 individual tenancies, this is something quite different. You can expect to pay a premium for the interest rate whether a HMO license is required or not.
To find out more information about student let HMO mortgages, please click here. Vincent Burch offer friendly advice as standard, and are here to help you find the best possible mortgage rates. Give us a call today on 01603 340 644 to find out more!