Landlords looking to expand their portfolios by buying properties to rent out to students have been told to carefully consider where and what they buy.
Research shows that many property investors are looking to buy landlord insurance on buildings that are ideal to rent out to students. Although the recent hike in student university fees has dissuaded some not to study for a degree, letting agents across the UK report massive demand from students looking to find decent housing for their years away from home.
The research also shows that students are becoming more conscious about the accommodation they require, with geographical position and IT access becoming the most important prerequisites when they start a search. It is thought the massive hikes in the cost of motoring has meant that many families can no longer afford to buy a car for their offspring when they go to university and so renting a home close to their seat of learning is now much more important for the average student. They also look for a property that is close to bus and rail links with another key element being high speed internet access.
Peter Mindenhall, who did part of the research, advised landlords to look before they leap, saying: “Most students want to be situated close to campus and have good internet access. Other factors to consider are security and transport links, both of which are typically vital to students and will result in a home being more appealing to potential tenants. If all of these can be provided by a student development near a university that does not have many other purpose built properties and it represents better value for money, (then) demand will be higher.”
The research also showed that landlords letting homes to students were now routinely taking out income protection as part of their landlord insurance as their tenants struggle more and more with their increased fees.