Great Guide to Investing in Student Accommodation
Looking to invest in student accommodation? Not sure what kind of accommodation and location you should invest in? If so, you're at the right place. This guide will help make the right decision without dealing with any complications. So, read on to find out all you need to know about student property investment.
Investing in a Student Property
Are you an active property investor? Do you review the various kinds of investment available in real estate? Then you are probably aware of student property investment opportunities. But, if you are not, now is a good time to know in detail what it has to offer you.
Each year, hundreds of individuals head for university, leaving the family nest. Despite the huge expenses, the number of students opting for higher education is continuing to grow. Moreover, the number of international students is expected to increase by 10% over the next ten years. Most of them look for shared accommodation and part-time jobs to minimize their expenses. Services like WriteMyEssay help these students manage their studies with work. Knowing this very fact, hundreds of students getting their higher education and manage their life pretty effectively. So, let's take a detailed look at student investment.
What students look for in an accommodation?
The majority of students today are ready to pay high rent for a caring landlord and good quality accommodation. Even though there are several cheap options available, they prefer living in a better place. So, are you looking forward to investing in student property? If so, here are some tips:
● Make sure the house is well-maintained and fully furnished. This will give them a good option to spend their student life in.
● It is better to invest in student accommodation that has a good size communal area. Since most students are pretty social, having a big lounge can be a great selling point.
● Add some additional kitchen appliances such as a toaster, dishwasher, microwave, etc. It would make their busy lives easier.
● Include free internet access or a TV connection. This would make you stand out from the rest.
Which location is the best?
London attracts a great number of students every year. No wonder why it Is the number choice for many investors out there. But, it is also the most expensive place if you're just getting into this business. So, make sure you choose the right property and the right area according to your initial investment.
According to the Student Property Index 2012, "London will remain a top opportunity for the student property investors along with Edinburgh, Durham, Manchester, Kingston a, and Brighton." So, choose the city or town that attracts the most students.
A good tip is to focus on towns and cities with universities offering a high proportion of engineering, science, technology, and math. These universities have higher chances of concentrated government investment.
Types of Student Accommodation
Now the question arises what type of accommodation will be ideal to invest in? The answer is all types depending upon the location of the accommodation. The types include big multi-room apartments, studio flats, private halls of residence, etc. Usually, no of students living in a single house is considered ideal.
The trick here is to own a property in which you may rent out multiple tenants charging on per study basis. This gives you maximum return on investment for the property. You may also buy a big house or flat to rent out different rooms or get your hands on big halls of residence.
Another aspect is the location of the property. The closer it is to the university, the higher the rent. The ideal location is just opposite the university campus or in close vicinity of the institute. The property should at least be accessible through walking or biking to be called an ideal location. If a property is far from the campus, it should have a public transport facility that may commute students to the nearby city center as well.
Taking the landlords insurance
Are you 100% sure about investing in student accommodation? If you're nodding your head in yes, consider taking landlords insurance. This insurance helps you to protect your investment. It covers various accidental damage such as floods, fires, and broken windows. In addition, the insurance policy also allows you to cover lost rent payments. In case the accommodation is no more habitable. Insurance is to secure your investment in a time of crisis. The tenants can also be provided with alternate accommodation till the property is being repaired.
Things to keep in mind when purchasing a property
No matter what kind of investment you make, it is recommended that you always do thorough research before purchasing. Investment in student accommodation is no different from any other kind of investment. So, carefully pick your property. The area you are planning to invest in needs in-depth research. Also, it is a good idea to check the number of applications every university gets each year. Places, where universities recruit a good number of international students, can be your top investment location. In short, do your calculations carefully. Ensure that the accommodation you're choosing is within your budget. Also, that it is suitable for students; if it lacks some elements, make sure you fix everything. For instance, ascertain it is fully furnished, well-decorated, and clean.
Additionally, the location of your house/flat is often the key to success. The closer it is to all the amenities and the university, the better the chances of high income.
You may also take help from agents to market your property. Doing so will help you know that the tenants moving in have been referenced and credit checked. It will give you great peace of mind.
Besides, it is a good idea to market your rental space even when it is full. It will provide you with a list of students wishing to move in. Consequently, when a tenant moves out, you would have another one waiting to move in. Hence, your property would never be empty.
Decision-making when investing
There are several independent land and property investment professionals that offer support and expert advice to the clients. These experts help their clients to achieve their real estate goals.
So, if you are confused about a certain house or flat, it is a good idea to contact a specialist. Discuss your budget and options with them, and receive the best possible advice. After all, your one wrong decision could cost you your initial investment.
All in all, investing in student property is a great option if you're a real estate investor. But, like all other investments, it is crucial to do your research well before you purchase. This is sure to help you make the right decisions that would help you achieve your investment goals.
